Mindless overspending is the number one financial freedom killer for first-generation Latinas. Read on If you’ve been struggling with your spending addiction.
First-generation and immigrant Latinas have an added pressure that no other cultural group has when it comes to building wealth. It’s the pressure to succeed in a world that does not make financial literacy easy for us. We want to make the best of our and our family’s sacrifices in coming to the United States.
But many of us fall victim to the trap of overspending and for immigrants/first gen, the habit can lead to frustration that hits differently.
About 10 years ago, I was living paycheck to paycheck. I had credit card debts courtesy of mindless purchases from various thrift stores and TJ Maxx.
Despite all the material stuff I had, I didn’t think it was enough. I began to realize the extent of my purchases when I had to move to another state and had to lug all that around. “How did I come to accumulate so much crap?” I asked myself “I need to do something about this!”
But everywhere I looked I saw depriving budgets and new habits that required me to input things on an app – which I tried and failed many times because nobody has time for that (by nobody, I mean me). It wasn’t until I began to dig deep into the reason why I felt the need to overspend and explored ways to heal my relationship with money that things began to change.
What is Mindful Investing and Why Does it Matter?
Let me begin by explaining the difference between mindless overspending and mindful investing. Spending in itself is not bad. The problems come when you are not happy with where your money is going or if you don’t feel like you are making progress with your finances.
Mindless spending is the root of many problems with overspending. It is making purchases with no clear aligned objective. There is always an intention when you make a purchase and it is one that is either taking you closer or away from the version of yourself that you dream of.
Mindful investing is exchanging money for a product or service that is getting you closer to your goal. It is done with intention and purpose.
Once you switch to mindful investing, you will never again have to worry about buyer’s remorse. You will never have to feel bad or guilty about making a purchase because you know that it is something that is benefitting your goals. Keep reading to find out how I did it.
How to Shift from Mindless Spending to Mindful Investing
The truth is, overspending is a habit that has been so ingrained in your identity that in order to make any changes, you need to get to the bottom of what is fueling it first. You have to do the mindset work first or all of the strategies and apps in the world will not help you. Trust me, I’ve tried every budgeting app out there.
Here is what actually helped me heal my spending addiction:
Know What You Want
You have to know what kind of life you want to create before embarking on this journey. Start with the end in mind. Like an archer taking aim at a target, knowing what you want will guide your priorities and eventually what you spend your energy (money) on.
Identify as Wealthy You
Use this time to rebuild your identity. Identify the wealthy AF woman you want to become. What would she prioritize at this moment if she were you right now? Would she think this is a no-brainer investment?
Know the Problem
Explore what you are actually spending money on and why it bothers you. Are your purchases in alignment with your goals? Is overspending the result of impulse buying? Unexpected or emergency expenses? Know if the problem is just a matter of lack of organization- like you forgot to transfer some money or something deeper.
Get to the Source
It’s never really about the money or the material stuff but what you get out of buying that matters. Explore why you do it. What is the ultimate intention of your spending? Do you do it for the release from the crushing weight of your responsibilities(retail therapy)? Is it because you want to live up to a certain image? Is it a learned belief that a person like you should spend on certain things? Is it making up for a time when you or your parents couldn’t afford certain things and now you could?
Brainstorm
Then brainstorm ideas on how you can achieve the same emotions or results without shopping. Again, shopping is not “bad” but this exercise is helpful in figuring out other healthy outlets for what is really going on.
Whether the ultimate goal is for entertainment, the thrill of something new, self-development, or more, you can find the same results another way.
Explore New Hobbies
Explore new hobbies that require limited to no capital. It was important that your new hobbies honor your purpose, intention and those emotions you seek when you buy something new. A few examples include: checking out free books/audiobooks at the library, journaling, yoga, hiking, refurbishing furniture, propagating and tending to house plants, etc.
They may be uninteresting for you right now (they once were for me) but it is up to you to shift your identity and see what your higher self wants YOU to do. DO not start with new habits without doing the inner work first!
It is a Choice
How powerful would you feel if i told you that you can choose to be satisfied right now? Growing into the new version of you is a choice. You can choose to be grateful for what you have. You can choose to bring up emotions of wealth right now. You can choose to prioritize the habits that will birth the wealthy version of you. It is a choice.
Gratitude
This process cannot be complete without a bit of gratitude. Scratch that – a whole lot of gratitude. Gratitude for what you have and everything you’ve ever invested in, for yourself and this new awareness, and for the new you who has a better relationship with money.
When I started my journey of healing my spending addiction, I went through a decluttering phase and let go of everything that didn’t align with the new version of me. Every item I touched received my gratitude whether I kept it or not. Gratitude brings feelings of joy that you get to own certain things even if you outgrow them. Who knows, you may even give new life to an old item!
Shopping Guide for the Healing Over Spender
- When shopping and you feel the need to make a purchase do the following:
- Look at the item or view the service and ask yourself why you want this
- Is this taking you one step closer or further away from your goals?
- Can you achieve a similar result with another product to service
- Walk away for a few minutes, dissociating and clearing your mind
- If the purchase feels aligned and you still want it, get it
It’s important to follow your intuition when asking yourself these questions. Your gut always points you in the right direction – the direction of your purpose, the wealthy women you are Destined to be.
Closing
My expenses have shifted but everything I invested in now has a meaning and a purpose that is serving the next-level version of myself. It’s about prioritizing what is in alignment with your next-level self.
Take the time to explore what you prioritize in terms of investing your money, and your intentions, and see what comes up.
You are not alone, amiga.
If you are struggling with overspending, I invite you to book a 90-minute call. In the call, we will get to the root of why you overspend and create clarity on what to do to make more aligned choices.
Cheers to abundance!