With Christmas coming up soon, many people will be spending a lot of time at the shops buying presents – or for business owners, organizing Christmas or end of year parties – which is great! Understandably, spending can get a bit out of hand this time of year, but there’s no reason that budgeting and buying have to be mutually exclusive. This is why this week’s article is on intentional spending and how to utilize it. Let’s begin!


What’s the difference?

Intentional or deliberate spending is when a stable financial plan has been set up in advance of the purchase, and the money can be easily accounted for and accessible ahead of time.

The benefits of intentional spending are:

No buyers remorse: make purchases guilt free

Money is accounted for: Budgeting is easier when you’re tracking what you spend.

Funds to rely on when needed: In case of emergencies, you won’t be unprepared.

You can invest your money: Since you’re allocating your money, with good counsel, you can put some in to investments such as property, shared assets etc. for returns.

Impulsive spending happens often when you don’t have a stable financial plan established. Commonly, making expenditures that have not been planned for/accounted for in your budget.

What causes impulsive spending?

Often when you’re already looking to purchase something, you get drawn to other items that you feel you may need or really want. The downside of impulsive spending is that in the heat of the moment, you can’t be sure the thing you’re buying or committing your money to will be beneficial in the long run. Since the purchase is unaccounted for, it could be eating away at money you were saving to put toward financial goals.

Whether it’s for yourself or your business, impulsive spending can become a problem if done too often. Exceeding your budget too much can result in not enough finance to cover other areas of your life/business – causing unnecessary stress.

So how can you implement intentional spending?

Make a list of essential and wishlist items: Focus on the essentials first.

How much are those items going to cost – if you’ve bought something online – have you considered postage and insurance fees?
By when do you have to pay these expenses? Track each expense.
Have a savings account, into which you keep putting money so when the time comes, you’re prepared for any expenses.

Admin, A. (2021, October 14). What’s the Difference Between Impulsive & Deliberate Spending? RLTP. https://www.rltp.co.uk/whats-the-difference-between-impulsive-deliberate-spending

MyCredit Bucks. (n.d.). 10 Benefits of Deliberate Spending to Help Budgeting. https://www.mycreditbucks.com/blog/10-benefits-of-deliberate-spending-to-help-budgeting/