Buzz
If you're looking to take control of your spending, one effective method is to embrace the 'pain of paying,' as Joe Pinsker explains in *The Atlantic*. This involves, for example, paying with cash instead of credit. Credit cards make it easier to buy now and pay later, which can lead to overspending. Paying in cash, however, makes the transaction feel more immediate and painful since you're parting with your money right away.
By using the pain of paying to your advantage, you may be able to reduce unnecessary spending, according to Pinsker, who keeps track of every credit card purchase on his phone. 'After I buy something, I log the transaction on my phone, recording the price and what I bought,' he explains. 'The goal is to increase the pain of paying, particularly with a credit card, by forcing myself to acknowledge what I'm spending.'
Since implementing this strategy, Pinsker estimates that his discretionary spending has dropped by 10 to 15 percent. He notes that while it increases discomfort in the short term—helping to curb impulse purchases—it also reduces the pain of uncertainty when it comes to future credit card bills. A win-win.
To enhance Pinsker's method, behavioral economist Dan Ariely suggests logging purchases *before* you make them. This approach is likely to discourage unnecessary spending.
Another tip from Ariely is to think about what other purchases you could make with the money you plan to spend. For instance, set a weekly spending limit, and any leftover funds at the end of the week can be put toward something like a nice dinner.
Budgeting tools such as *Mint* provide ways to track spending, but using a simple Notes app (or alternatives like Bear or OneNote) can offer a more straightforward, less time-consuming approach than categorizing every expense.
Pinsker acknowledges that this system won't fix all financial problems. 'There are usually more savings to be found by reviewing auto- or home-insurance policies, or phone bills, than by skipping an extra cup of coffee,' he writes. And making constant micro-decisions could increase financial stress. Some indulgent spending is *just fine, after all*. But if you're looking to better manage or reduce discretionary spending, it's an effective strategy.
