Discover what mindful spending means and how to do it

The dilemma faced by modern society today is being trapped between the desire to fulfill temporary tertiary needs while essential primary needs continue to pile up. This often happens because many people are still not fully aware of how to properly manage their finances.

As a result, it’s easy to get tempted into buying things outside your list of essential needs. If you don’t start paying attention now, you might end up regretting those impulsive purchases.

That’s why it’s so important to adopt a mindful spending mindset. So, what exactly is mindful spending, and how can you apply it? Let’s break it down!

What Is Mindful Spending?

Mindful spending is a principle where you consciously consider all aspects before spending money. Simply put, it’s about thinking carefully—almost a hundred times—before deciding to buy something.

This concept is closely tied to psychology. Why? Because when making decisions, our ego and desires often dominate.

That’s why so many people get stuck in a consumerist and hedonistic lifestyle if they don’t manage it well. Eventually, they end up asking themselves, “Why did I even buy this?”

Once you fall into that trap, the negative effects of consumerist behavior include constantly feeling like you never have enough, being stuck in a “debt cycle,” and even failing to meet your basic needs. Obviously, that’s not a situation you’d want to be in!

A simple example of mindful spending is when you’re about to buy new clothes. This principle encourages you to pause and ask yourself:

• Do I really need this item?
• Is there an alternative I already have?
• Is this purchase truly urgent?

But keep in mind—mindful spending is not the same as being stingy! While mindful spending helps you avoid wasteful habits, stinginess is a different concept altogether.

For instance, a stingy person often struggles to spend money even on essentials. In extreme cases, they may even refuse to share with people around them who are in need.

How to Apply Mindful Spending

So, how can you actually start practicing mindful spending to avoid overspending? Here are some practical steps:

1. Prioritize Needs Over Wants

The success of mindful spending depends heavily on your self-discipline. This means setting clear priorities where needs come before temporary wants.

Most “wants” only serve short-term satisfaction. For example, you go to the supermarket intending to buy just one item, but end up leaving with a cart full. This usually happens because of impulse buying—don’t fall into that trap!

2. Create a Financial Plan

Once you know how to prioritize needs, the next step is to create an effective financial plan. This helps you allocate expenses more wisely.

Making a monthly budget is easier than ever thanks to apps and tools. You can track expenses in a notebook, spreadsheet, or a finance app.

You can also apply the 50-30-20 rule when managing your monthly income:

• 50% for essential needs
• 30% for leisure or personal wants
• 20% for savings or investments

The key tip: always prioritize essentials and recurring payments like credit cards, installments, or pay-later bills. If you neglect these, you could face extra interest charges or late fees.

But don’t worry—if you’re using Honest Credit Card, managing expenses gets easier. Why? Because the Honest App gives you real-time transaction info, auto-debit options, and the flexibility to set how much you want to pay each month. In short, you can pay bills based on your financial capacity at the time. Pretty convenient, right?

3. Consider a Frugal Living Lifestyle

Ever thought about living with a “just enough” mindset? If not, try exploring frugal living!

This lifestyle teaches you to spend only on what’s necessary while still living a healthy and fulfilling life. The key is consistency in monthly budgeting and sticking to your spending plan.