This is the EASIEST Way to Stop Overspending (NO BUDGETING REQUIRED!!)

A to Zen Life

21 Jul 202411:27

Summary

TLDRIn this video, Mera from 'AIS in Life' shares strategies to stop overspending without relying on traditional budgets. She explains that overspending often stems from a toxic relationship with money, not just poor financial planning. Mera suggests identifying spending triggers, building a priority pyramid for expenses, and examining money beliefs influenced by upbringing and relationships. She encourages viewers to reshape their identity around finances, make small changes, and set healthy boundaries in relationships. Mera concludes by offering practical steps for better money habits and financial well-being.

Takeaways

😀 Changing your relationship with money is key to stopping overspending, not just following strict budgets.
📊 84% of Americans admit to impulse shopping, with an average of three purchases per week, leading to significant non-essential spending.
💡 Identifying and understanding your spending triggers can help you stop impulse buying.
🛒 Money is a neutral tool, and how we perceive and use it is what defines our financial habits.
🏠 Building a priority pyramid can help structure your spending, starting with fixed costs, followed by financial goals, and lastly, non-essentials.
🔍 Checking your 'money filters' (beliefs shaped by past experiences) helps identify financial behaviors that might be holding you back.
🧠 Changing your money identity from someone 'bad with money' to someone frugal can shift behaviors towards better financial habits.
📚 Educating yourself about personal finance can lead to significant financial changes, like asking for raises or eliminating debt.
💰 Toxic relationships, whether romantic or social, can severely impact your finances, and setting boundaries may be necessary.
🤝 Surrounding yourself with people who have healthy financial habits can positively influence your own financial behaviors.

Q & A

What is the main topic discussed in the video?
-The main topic of the video is how to stop overspending without relying on a traditional budget.
Why does the speaker avoid using the term 'budget'?
-The speaker avoids using the term 'budget' because many people have a negative perception of budgeting, and it doesn't work for everyone, especially for those with a complicated relationship with money.
What percentage of Americans admit to frequent impulse shopping, according to the video?
-According to the video, 84% of Americans admit to frequent impulse shopping.
What is the first step to stopping overspending mentioned in the video?
-The first step to stopping overspending is to identify your 'bad' spending triggers and understand what motivates your impulse purchases.
What personal example does the speaker provide to illustrate a bad spending habit?
-The speaker shares a story about buying a mermaid statue on sale during a spring break trip, despite being a broke college student. This purchase was influenced by a fear of missing out on a great deal, even though the item was impractical.
What is the 'priority pyramid,' and how is it used to control spending?
-The 'priority pyramid' is a visual representation of financial priorities, with essentials like rent and bills at the bottom, financial values and goals in the middle, and discretionary spending like hobbies and vacations at the top. It helps prioritize spending by ensuring essentials and goals are covered first.
What analogy does the speaker use to describe how people view the world through personal beliefs and attitudes?
-The speaker uses the analogy of 'filters' similar to those on Instagram to describe how people's past experiences and beliefs influence their perception of money and financial habits.
How does the speaker suggest changing one's identity when it comes to personal finance?
-The speaker suggests deciding what type of person you want to be financially and then proving it to yourself through small, consistent wins, as described in the book *Atomic Habits* by James Clear.
What impact can relationships have on a person's spending habits?
-Relationships can significantly influence spending habits, as people tend to mirror their friends' financial behaviors. Additionally, toxic relationships can lead to poor financial decisions and create conflicts over money.
What advice does the speaker give for dealing with negative influences in relationships?
-The speaker recommends setting clear boundaries with friends or loved ones who negatively impact your finances or rethinking those relationships if they continue to be harmful.

Outlines

00:00

💡 Introduction: How to Stop Overspending Without Budgeting

The video introduces Mera and her channel, AIS in Life, focused on simplifying life for a happier and richer experience. Mera teases the content by discussing overspending and how to quit it without using traditional budgeting methods. She emphasizes that overspending is common, as 84% of Americans impulse shop, spending $188,000 annually on non-essential items. The video aims to tackle overspending from a mindset perspective, starting with recognizing spending triggers.

05:01

🔍 Recognizing Your Bad Spending Triggers

Mera explains that identifying personal spending triggers is crucial for controlling finances. She emphasizes that money is morally neutral and that bad spending habits stem from psychological factors. She shares a personal story about buying an expensive mermaid statue due to fear of missing out on a sale, only to regret it later. The takeaway is to shift from a scarcity mindset, pinpoint triggers like impulse buying, and use tracking tools to better understand spending habits.

10:02

📊 Building Your Priority Pyramid

Mera introduces the concept of a 'priority pyramid,' where the base is formed by essential fixed costs like rent and insurance. Above that, one should prioritize financial goals and values, such as spending on healthier groceries or saving for a down payment. The top of the pyramid is reserved for non-essential 'wants,' such as hobbies and dining out. This system helps ensure that overspending does not derail your essential financial commitments.

🔄 Checking Your Money Filters and Changing Your Mindset

The video explores how personal beliefs and experiences shape financial behaviors, comparing them to Instagram filters. Mera shares how her father's belief in investing in collectibles led her to value possessions over money, making her 'stuff-rich but money-poor.' She encourages viewers to examine their own 'money filters' and change negative identities, like thinking 'I'm bad with money.' She references James Clear's book *Atomic Habits* and explains that small wins help redefine personal financial identities.

👥 The Impact of Relationships on Finances

Mera stresses the importance of assessing relationships that may negatively affect finances. She shares a personal story about being in a financially toxic relationship that led her to drop out of college and work multiple jobs. After ending the relationship, her life improved significantly. She advises viewers to consider if friends or loved ones are influencing their spending habits and to set boundaries if necessary. The video ends with a call to action, inviting viewers to share their tips and engage with her content.

Mindmap

Keywords

💡Overspending

Overspending refers to the act of spending more money than necessary or more than one can afford. In the video, the speaker addresses the issue of frequent impulse shopping and how it leads to financial strain. The main message revolves around recognizing overspending habits and taking control of them by changing one's relationship with money.

💡Impulse Purchases

Impulse purchases are unplanned buying decisions driven by emotions or external triggers like sales or advertisements. The speaker highlights that 84% of Americans admit to making impulse purchases, often leading to unnecessary expenses. This concept is critical to the video's theme of financial discipline and eliminating wasteful spending.

💡Budget

A budget is a financial plan that allocates future income toward expenses, savings, and debt repayment. While many financial advisors suggest using a budget, the speaker criticizes it as insufficient for people with a ‘toxic relationship with money.’ She compares a budget to a Band-Aid, saying it cannot fix deeper financial issues.

💡Spending Triggers

Spending triggers are emotional or situational cues that lead someone to make purchases. The speaker encourages viewers to identify their personal spending triggers, whether it’s sales, social media, or stress, as a way to gain control over their finances. By understanding these triggers, individuals can better manage their impulse buying.

💡Scarcity Mindset

Scarcity mindset refers to the belief that resources are limited, leading individuals to make poor financial decisions, like buying items they don’t need just because they’re on sale. The speaker discusses how her own fear of missing out on sales led to unnecessary purchases, like a mermaid fountain statue, which she later regretted.

💡Priority Pyramid

The priority pyramid is a mental framework the speaker introduces to help viewers categorize their spending based on importance. Essential expenses, like rent and groceries, are at the bottom, while discretionary spending, such as hobbies and vacations, is at the top. This hierarchy helps ensure that financial priorities are in order.

💡Money Filters

Money filters are personal beliefs and attitudes that influence how people perceive and spend money. The speaker explains that people develop these filters based on their upbringing or life experiences. For example, growing up in a family that valued collectibles influenced her own poor spending habits, such as hoarding items rather than saving money.

💡Frugality

Frugality is the practice of being economical with money, avoiding waste, and prioritizing savings. The speaker identifies herself as frugal and encourages viewers to adopt similar habits by re-educating themselves about personal finance. Frugality is presented as an essential tool for stopping overspending and achieving long-term financial goals.

💡Identity Shift

An identity shift in personal finance involves changing how one perceives themselves in relation to money. The speaker emphasizes the importance of changing one’s identity from being 'bad with money' to someone who is financially responsible. This shift is a crucial step toward developing healthier money habits and ultimately achieving financial success.

💡Financial Boundaries

Financial boundaries are the limits individuals set in their financial relationships to avoid negative influences or conflicts. The speaker discusses how toxic relationships, like one with a financially irresponsible partner, can harm financial well-being. Setting boundaries with such people can help protect one’s financial health and future.

Highlights

The video focuses on strategies to stop overspending without relying on traditional budgeting.

84% of Americans admit to frequent impulse shopping, averaging three impulse purchases per week.

Overspending is often addressed with budgeting or no-spend challenges, but the video suggests these methods don't work for everyone.

Instead of focusing on budgets, the video emphasizes changing one's relationship with money to stop overspending.

The first step to stopping overspending is identifying your spending triggers, which can be personal, such as buying items on sale or late-night online shopping.

The speaker shares a personal story about impulse buying a $200 mermaid statue, highlighting emotional triggers in spending.

Building a 'priority pyramid' is suggested, where fixed costs form the foundation, followed by financial values and goals, and wants are at the top.

Checking money filters is key, as the way people view and handle money is influenced by their personal experiences and beliefs.

The speaker shares her experience growing up with a parent who invested in collectibles rather than financial markets, which influenced her attitude toward money.

Changing one's identity regarding money is critical; thinking of oneself as 'frugal' can lead to better financial habits.

The speaker credits reading books like 'Atomic Habits' by James Clear for helping her change her financial mindset.

Over time, small changes helped the speaker make significant financial gains, including negotiating a 133% raise and eliminating $250,000 in debt.

Relationships can influence spending habits, and surrounding oneself with people who have positive financial habits is important.

A study found that 78% of millennials mirror their friends' financial habits, and 66% try to keep pace with their friends' spending.

The video ends with a call to reassess relationships with people who negatively impact your finances and set better boundaries if needed.