How to stop saying ‘yes’ to unnecessary purchases

Peer pressure, fear of missing out and guilt are some of the reasons we spend money when we shouldn’t. Here’s how to say “no” more often and save thousands.

Almost all of us have done it, and it’s not something we’re proud of.

If you find yourself wasting money on unnecessary purchases and activities, it may be time to learn how to stop saying “yes”.

Research group Canstar has found almost one quarter of Australians have spent money on activities they can’t afford by pulling cash from savings, loading up credit cards or borrowing from family or friends.

Canstar’s Effie Zahos suggests waiting 48 hours before spending. Picture: John Appleyard

It found this could be because of fear of missing out, having their social status negatively impacted, guilt, pressure or trying to keep up with the Joneses.

Canstar spokeswoman Effie Zahos says there are several ways to help stop yourself from saying yes to needless spending.

“Stop saying ‘I can’t afford it’ and begin saying ‘I choose not to afford it’,” she says.

“By turning it around and saying it out loud you put yourself back in control. There is some psychology around wanting things more once we know we can’t have them.”

Zahos suggests a 48-hour rule, where before buying you take two days to ask yourself if you need it, if you can borrow it, if you can make it yourself, if you can rent it, or if you can buy it second-hand.

Pocketbook director CEO Serdar Nurmammedov says being more careful doesn’t mean giving up on everything you love.

And if you don’t buy it, the savings could go into a “fun money” account to be used for something you really enjoy or want, Zahos says.

Another tip is to turn the cost of any item or activity into the hours you work to pay for it.

“Say for example you’re wanting a new pair of shoes that cost $200,” says Zahos.

“If you earn $30 per hour that means you’d have to work almost a full day to buy them. Are they still worth it?”

Pocketbook director Serdar Nurmammedov says people who are financially disciplined will be surprised how quickly their savings grow, but being more careful doesn’t mean giving up on everything you love.

“Financial freedom is all about adjusting your budget to factor in all of your wants and needs, while still meeting the requirements of your long-term goal,” he says.

“So go out for dinner or treat yourself to that coffee – budgets exist to keep you on top of your money so you can enjoy life more.”

Nurmammedov says 2020 has changed many Australians’ money habits.

“Circumstances have forced us to be more frugal, but in doing so, have taught Australians how to have a better handle on their spending.”

@keanemoney