I’m a big fan of the Financial Feminist podcast. A few weeks ago the host, Tori Dunlap, shared a money hack that she had heard about from another financial educator on Science Finance: Before making an impulse purchase, ask yourself: “How many ‘taco dollars’ does it cost?” That particular financial educator really loved tacos, so he judged each purchase by asking, “How many tacos could I buy for the cost of that item?” Concert tickets: 20 tacos. Cupcake: 1 taco. Fancy hotel stay: 83 tacos. Then, he would ask himself: “Is it really worth that many tacos?”
This genius money psychology hack gives you an entirely different way to evaluate your purchases and help stave off emotional spending. And since everyone loves a good hack, here are a few more of my favorites that can help you get past some of your emotional/psychological money barriers:
How many taco dollars does it cost? If, like me, you like tacos but don’t LOVE them, think instead of something you LOVE. Since I’m a sucker for a homemade cupcake, pain au chocolat, cinnamon twist, or cake pop, I use baked goods. For the sake of simplicity, let’s stick with cupcakes, which I can usually get for about $3. This becomes my new barometer for considering spending purchases. I might ask myself: Is that pair of shoes that’s on sale for $30 really worth 10 cupcakes? Is the impulse bag of chips in the grocery store really worth one cupcake? The great news: It helps you realistically evaluate your expenses based on your values without creating additional guilt or shame.
Ask “why?” This simple question is a great way to challenge narratives we tell ourselves – things like, “I’m bad with money” or “I’ll never have enough money to retire” or “Talking about money makes me anxious” or “I’m a financial failure.” The next time one of these pops into your head or crosses your lips, stop and ask yourself: “Why do I believe that? What are the specific reasons?” Give yourself an honest answer. Bonus: This works especially well with a partner. Hold each other accountable by agreeing to ask each other “why” when you bump up against these beliefs.
Decide once: Make a plan for how you’ll use any financial windfalls that come your way this year. Set percentages to make sure everything you value can get a piece of the pie. For instance, you might choose to spend 10% on something fun, give away 10%, use 40% to pay down debt, and put the remaining 40% toward your vacation fund. Making this plan early on will help you combat decision fatigue, keep fights to a minimum, and ensure that money makes it out of your checking account to where it belongs.
Focus on goals, not transactions: Usually even the most financially anxious partner wants to be involved in setting financial goals. They just might not want to be involved in the minutia of managing the money. Start with a goal they care a lot about – like funding your kid’s education, preparing for early retirement, or saving up for an anniversary trip – and dream together about the details of that goal. Research how much the different pieces of the goal might cost. This practice will help you both feel invested in the process and make it easier to hold each other accountable as you take steps to achieve it.
Visualize it: This was my go-to trick as my husband and I prepared for our big move out to Washington. I put my favorite pictures of the Pacific Northwest as my background screen on my phone, personal laptop, and work computer to remind me of the big goal my spouse and I were working towards. Since I do almost all of my shopping online, it helped me make clearer, more intentional decisions about the ways we used our money. You might find it more helpful to put a small picture of your goal in your wallet, on the fridge, or on your bathroom mirror. It’s important that you put it in a prominent spot where it won’t be forgotten.
Carry cash: I admit, I have mixed feelings about this. For some people, cash feels more ‘real’ than using a debit or credit card, so it helps them spend less. If that’s you, it’s a great money hack! When I was younger, though, cash always felt like “fun money” since I usually only had it when I got it for birthday and Christmas gifts. That being said, when I ran into issues with spending too much money on fun when I was in graduate school, I started going to the bank and withdrawing just enough to cover my expenses for the weekend. I had my debit card in case of an emergency, but committing to only using my cash really helped me stay within my budget.