Whenever I get paid, I find that I can't just sit with the money in my account. If it's not in a savings account, I feel like I HAVE to spend it, like I have an intense amount of anxiety over the fact that I have excess funds and often find myself actively looking for something, ANYTHING, to spend it on to get rid of it and then proceed to feel bad for spending so recklessly and emptying my account like that. It's a vicious cycle and I wanted to know if anyone struggles with anyone similar, any ideas as to why I might be like this, and ways to stop.
How To Stop Immediate Spending When Paycheck Comes
byu/KaptainArby inFrugal
Posted by KaptainArby
8 Comments
Set aside a payment to your savings account every paycheck and treat it as a mandatory bill. Maybe keep in a separate bank so you don’t constantly see it
Yep, this is way more common than you think. Your brain is treating extra money like a problem that needs to be “fixed,” so you rush to get rid of it to calm the anxiety. What helped me was moving money out the second it hits my account and keeping a small “safe to spend” amount so I don’t spiral. It’s less about willpower and more about changing the setup so your brain chill out.
I got out of this cycle by sitting down and making a budget. I added all my expenses, including a $100 “fun fund” for anything I wanted but didn’t need (collectibles, fast food, outings)
Seeing how fast my paycheck gets eaten up by necessities and having to stretch my fun fund by finding discounts and coupons and turning down stuff, it helped me a lot.
I stopped looking at my bank account and thinking “look at all that money, I should spend it!” And started thinking “almost all of that money is just bill that haven’t been taken out yet, I can’t touch it or I won’t he able to pay my bills”
If you truly have excess money after bills that you want to stop spending, open a HYS and start an emergency fund with that extra money! You never know when you could get sick, or total your car, or have an unexpected bill, and will be in a terrible spot without an emergency fund.
That fear keeps me on track
Tell yourself you want to buy a new car (or something around that price range). You won’t be able to do that with a single paycheck. It’ll force you to save.
You need to be conscious about saving the money. It won’t be easy at first because you’re essentially breaking a ritual/habit
No offense, but did you used to be poor/financially struggling? My family member who grew up poor were like that as well, perhaps because they’re not used to having excess money.
Maybe try to set up an auto debit system in your bank, so when the paycheck comes in, it’ll automatically deduct a certain amount to your savings first. Treat those money as non-existent.
Secondly, I would use 24 hour cool down system before buying anything above 1% value of my THP. This massively cuts down impulse spending and buyer’s remorse – cuz if I buy it after the cool down period, means I really want the item.
3 question I asked before purchase:
Do I want it or do I need it? Do I have it at home somewhere already, or its substitute? Does it worth working X hours to buy it (insert your hourly THP)?
Third, I don’t shop when I’m emotional, and no big spending the first week of receiving my paycheck outside the essentials – unless planned
Firstly it’s important to forgive yourself for spending money previously. It happens, so focus on how you can do things differently going forward.
You may also want to get professional assistance. There are people in the world that help with this exact thing. It’s not shameful or embarrassing to do so, I think it is quite admirable to take that step. People on Reddit can share their experiences, but a professional may be able to help you better by knowing more about your situation.
All the best!
Set auto transfer on the day or next day of your paycheck day. If your cost of living can be managed with 40% of your salary –
Set auto transfer of 50% into brokerage account for investments.
Set auto transfer of 10% to savings account.
Let the remaining 40% sit in your checking account for bill payments and expenses.
Automate your bills payment. You will be left with very less money to spend.
Also imagining if that income stops, how would you manage, helps in building nest egg.
“But what if an emergency happens? What if my dog gets sick? What if my car gets in am accident or breaks down? What if i have a health scare? The material stuff I’m looking to buy won’t save me or help me. It’ll just sit there.”
These thoughts have saved my ass. Because life WILL 1,000% happen and you will need that money. We always need money bc something will always come up when we think we’re safe.. Also automate your savings was a life saver for me.