Money is a very sensitive topic not just because of the comfort it brings but because of the value it holds.

Whether you are dealing with personal finance or business finance the core values of your financial system should be mindful of spending. 

In this article, I will give you all the reasons why we find ourselves mindlessly spending money and how we can stop this bad habit. Let’s have a look;

Reasons for mindless spending: 

1. Poor budgeting and accountability

Unless you know how to properly budget your money and account for every penny, you’re most likely to overspend if not completely run out. 

In a business arena, regardless of the scale and size of your business, you might want to set up a top-level accounting system. 

Take into consideration factors such as the revenue or income, your periodic spending, spending tracker, needs and wants, etc. 

2. Extreme spending 

Extreme spending is when you spend a lot of money on things that you don’t necessarily need.

Extreme spending is evident from premium subscriptions, first-class services, VIP seats, and other types of things that tend to take away more when you can simply get a cheaper version and nothing will change.

For your business, you’re more likely to overspend paying for extremely overpriced agent services. 

Before paying for services or products online, make sure you read business services online reviews to ensure you’re getting services worth the pay.

3. The perception that you won’t run out of money 

Unless you have never noticed many athletes, celebrities, artists, etc run broke no sooner than they start earning a lot of money.

The problem is the perception that one will not run out of money. This perhaps may not be common with businesses because businesspersons know the value of money and many times they are after making more and more. 

However, when your business is running on personal finances you might just end up with the same mindset.

Create a separation between personal finances and business revenue so that your business stands a chance of financial growth.

4. Lifestyle comfort 

Unless you are sure that your earnings can complement your expensive lifestyle, do not get yourself into spending a lot of money on an unnecessary luxury.

This is not to say that you should not reward yourself with luxurious things but do so with much precaution and only occasionally.

Know when to draw the line between mindful spending and unnecessary luxury. 

In a business setting luxury office spaces with cityscape reviews are something you can do without and unless you can afford do not bother. 

5. Shopping delusions 

MP Dunleavely explains in ways we mindlessly waste money that shopping delusion is where we stop thinking we’re going to need something when it ends up being useless.

You are more likely to have shopping delusions where items are on sale or going for huge discounts. 

For instance, when you see an expensive pool table is on sale and that is when you realise it can be a great addition to your office space.

Heavy spending on seasonal products is another way you find yourself mindlessly spending.

How to Stop Mindless Spending 

1. Make a budget 

Having a budget will regulate how you spend your money. It will allow you to channel your money only to the things that truly matter.

With a budget, you can save extra income or revenue so that you can either expand your business or finance a vacation in future. 

2. Avoid window shopping 

There’s nothing good that comes out of admiring items you cannot afford. 

Window shopping leads to impulsive buying which is not in line with mindful spending of money. 

You’re more likely to be tempted to purchase an item because it’s on sale, it looks beautiful, or you fall for a shopping delusion that you will need it.

3. Start saving

One of the problems that lead many people to mindlessly spend is because of a lack of financial goals.

A financial goal is carved from savings. Take for instance if your financial goal is Independence, you’ll be wired to save more money, invest in the money, internal in more. This is the opposite of mindless spending. 

4. Invest 

Investing money is not mindlessly spending. People with extra sources of income or people who have fewer responsibilities can channel their extra money and invest.

Whether it is on stocks or actual business, as long as the money is being put to good use that may be profitable in the end, it will be a good use of money.