Got FOMO? Here are seven steps to avoid revenge spending
18th Aug 2021
You might not have heard about revenge spending, but chances are you have been doing it for the past month. Revenge spending refers to splurging on services, items or even experiences (such as the holiday you have been waiting to book) that you have been deprived of due to the pandemic.
thinkmoney recently discovered that almost half (48%) of Brits surveyed said they were planning to spend more on their holidays now that restrictions have eased. So, where does that leave our finances?
Seven expert tips to avoid revenge spending
A recent report found that one in three Brits have an average of £4,500 more in their savings since the pandemic. But could you be spending all of the extra money you have saved?
It’s recommended that you try to save up to 20% of your salary/monthly income, so we are sharing tips on avoiding ‘revenge spending’.
Wait three weeks before going ahead with big purchases
If you are looking to splash the cash on an expensive item or items, write them down in a list and wait three weeks. Then, come back to that list of purchases and cross out the ones that you have realised you don’t need. That way, you can separate the wants from the needs.
Pay attention to the smaller purchases to save £27 per month
Sit down and track what you have spent in the first month since restrictions have eased. Have you bought a coffee every day? Have you treated yourself to lunch out during the week? Pay attention to the smaller purchases and see what you can save. By cutting out one takeaway coffee and one lunch meal deal a week, you can save up to £27.
Compare 2019 spends to 2021 to cut out any unnecessary purchases
While a lot has changed in the past year, you might be able to get a better understanding of your finances by comparing your average disposable income from 2019 to today. Look at what you are spending on money today that you didn’t in 2019 to see if there is anything you can get rid of to save money.
Pay attention to the subscriptions you no longer need to save £100
thinkmoney discovered that 35% of Brits spent an extra £100 on their subscriptions during lockdown to keep them entertained. But with venues reopening, you might not need those subscriptions. Alternatively, you could look to combine your subscription plan with another person’s living in the same household to save money. For instance, Spotify and Netflix offer this option.
Don’t forget to turn up for Happy Hour
Happy Hour can save you significant sums of money, with some venues selling beer for under £2 during their selected Happy Hour. Typically set between 5 and 7, opt to head out and eat in between those times as you will save more on food.
Opt for accounts with jam jar budgeting options
Jam jar budgeting refers to splitting your money each month into ‘jam jars’. So, you have a jar for your bills, a jar for disposable income, etc. so you never spend more than you have. Not only does this ensure you can save but these types of accounts will also improve your credit score. thinkmoney’s Current Account has improved three out of four of their customer’s credit reports. *
- Based on a sample of customers who held an account for 12 months and previously had limited credit history or substantial credit use
Use supermarket loyalty cards when you are doing your shopping to save £400 per year
This is more of a long-term change but make sure you sign up for supermarket loyalty cards as you could make savings of £400 across the year, which leaves plenty spare to visit your friends and family.
How to save up to £50 in one month
For those who have events and catching up with friends and family on the horizon, we are also sharing how you can save up to £50 in just one month, or almost £600 over the year.
Set up a ‘Fun Fund’ and save £30 in four weeks
If you can plan ahead, set up a fund for the next time you go out and plan to save £1 per day. Doing so will give you £30 or £31 by the end of the month, which you can spend in those Happy Hours.
Round up your spends for an extra £15
If you round up everything you purchase (an estimation of one purchase per day) by 50p, you can earn up to £15 for the month. Pair that with your additional £30, and you have £45 to spend on your next event without dipping further into your savings.
If you can’t do a Happy Hour, eat out at lunchtime or for Sunday Lunch
thinkmoney recently found that dining out at lunchtime or during Sunday Lunch is the cheapest option, so always try and see if your family and friends are available at those times. Not only do you get to see them, but you can save as well, making it all the more sweeter.
Declutter your home and sell items on eBay
For those who keep saying they are going to clear out their loft, make sure you do as you could save up to £1,850. Even an old Nokia phone can sell for £30 on eBay, so it’s worth checking to see what you have been holding on to in storage.
Jonny Sabinsky, Head of Communications at thinkmoney, said: “In simple terms, revenge spending is when you spend money to make up for lost time. It’s a phenomenon that’s really about to erupt as we exit all restrictions and finally have the ability to spend the money we’ve been saving since March 2020.
As restrictions lift here in the UK, you might be tempted to treat yourself, refresh your wardrobe or book a holiday to make up for lost time during the pandemic.
But if the last 18 months have taught us anything, it’s that we always need a safety net during hard or unexpected times. Don’t fall back into the trap of living paycheck to paycheck.”
Tips on how to say no to social events
If you are struggling with FOMO but want to save your money, or even if you are struggling to say no to social events when asked, thinkmoney has asked Psychological Therapist, Kate Chartres, for tips on how to do so.
Kate’s top tips are:
- Be honest. Say I am not comfortable with being around big groups. If you are more comfortable around small groups, tell them. They will respect your honesty.
- Let them know you care about them. They are still a big part of your life, and that you will be together again soon.
- Remind them that having this time to be in your home/alone in nature has been helpful and you are not quite ready to give it up.
- Tell them it’s not personal. This is just a choice you are making at the minute.
Kate even suggests asking your friends or family to send photos, so that you can see and enjoy them at a later date.
If you are looking for how to save even more money, check out our Budgeting Hub for advice on how to better understand your finances.
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