THE BROKEN WALLET

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How to Fix a Bad Spending Habit (reset your spending). 

Managing your money isn’t just about cutting back or sticking to a budget—it’s about changing the way you think and act when it comes to spending.

If you’ve been feeling out of control with your finances, now’s the time to reset your habits and build a smarter, more intentional approach to money. Here’s how to fix a bad spending habit. 

1. Define Your “Spending Identity”

Resetting your spending isn’t just about changing habits—it’s about redefining who you are when it comes to money.

To fix a bad spending habit, ask yourself before shopping: Who do I want to be financially? Do you want to be thoughtful, intentional, and in control? Or someone who spends impulsively and feels regret later?

Once you have a clear picture of your ideal financial identity, write it down and let it guide your decisions. Whenever you’re tempted to spend, pause and ask, “Does this purchase align with the financial person I want to be?” If it doesn’t, walk away.

It also helps to reflect on past purchase regrets. What did you buy? Why did you buy it? And most importantly, why did you regret it?

Even if today’s purchase is completely different, the circumstances might be the same. Therefore, you may notice common patterns. For example, you might regularly regret purchases made without a list, those made while shopping with others, or those that resulted from aimless browsing.

The more self-aware you are, the better. This isn’t something you’ll master overnight, but over time, this mindset shift will become second nature. You’ll find it easier to say no to purchases that don’t serve your goals.

2. Keep a Spending Diary—With a Twist

A spending diary isn’t just a record of transactions—it’s a window into your financial habits. The key is to track not only what you buy but also the emotions driving those purchases.

For one month, record every purchase you make, and next to each entry, jot down how you were feeling before and after. Were you stressed, bored, or happy? This matters because while some people shop to cope with negative feelings, others spend more when they’re in a good mood.

By linking emotions to spending, you’ll uncover patterns in your habits. Once you recognize these triggers, you can then shift your behavior.

• If you tend to spend more when happy, channel that energy into a fun home project, a workout, or a way to treat yourself without spending money.
• If stress shopping is your go-to, create a “stress toolkit” with free or low-cost alternatives like a playlist of your favorite songs or journaling.

A Money Mindset Reflection Journal can also help you turn things around and fix a bad spending habit.

This journal acts as a personal coach, helping you identify spending patterns, understand the “why” behind your financial choices, and shift your mindset. By the end, you’ll be in control of your finances—not the other way around. If this sounds helpful, here’s how to download your copy.

3. Unsubscribe From Spending Triggers

Many spending decisions don’t start in our heads—they start in our inboxes, social media feeds, or favorite apps.

That “limited-time offer” email? It’s designed to make you feel like you’re missing out. To break free and fix a bad spending habit, do a digital detox focused on spending triggers.

• Go through your email subscriptions and unsubscribe from every store or brand that tempts you to spend unnecessarily.
• As new promo emails come in, unsubscribe and aim for at least five per day—and don’t sign up for any new ones.
• For brands you want to keep, create a separate email address just for offers and update your subscriptions accordingly.

This way, you’re not bombarded with daily sales and discounts. Instead, you’ll check that email only when you’re actually ready to buy something—not just because there’s a deal.

Fix a Bad Spending Habit FAQ

What is a bad financial habit?

A bad financial habit is any repeated behavior that prevents you from managing money effectively. This can include overspending on unnecessary items, neglecting to save for emergencies, relying on credit for non-essential purchases, or failing to track expenses. Bad financial habits often lead to debt accumulation, stress, and missed financial goals. Over time, they can have a serious impact on your ability to achieve long-term financial success.

What is reckless spending?

Reckless spending is when you make financial decisions without considering the impact on your long-term goals or overall financial health. It often involves impulsively purchasing items you don’t need, ignoring budget limits, or spending money to cope with emotions like stress or boredom. This kind of spending can quickly lead to financial instability, as it disrupts your savings and debt repayment plans. It’s characterized by a lack of mindfulness and disregard for future consequences.

How to fix a bad spending habit?

Fixing a bad spending habit starts with awareness. Track your spending to identify patterns and triggers that lead to unnecessary purchases. Set realistic goals for saving and budgeting, and establish limits for non-essential purchases. Practice mindfulness by pausing before buying, asking yourself if the purchase aligns with your values or goals. Consider creating a budget and sticking to it, automating savings, and seeking accountability from a friend or financial coach to stay on track.