What Is Mindful Spending?

Mindful spending is about being more conscious of what you buy, and how you spend your money.

What are the benefits of mindful spending?

Why mindful spending matters

From supporting local businesses to helping the environment, being mindful of your spending can also help you save money.

Many of us buy things we end up not using, or regret purchasing. Over £6 billion worth of ‘treats’ – including gadgets, kitchen and home gym equipment – bought during the pandemic are now regretted, according to an Aviva study.¹

Each year, the UK throws away 6.6 million tonnes of household food waste², and sends over 330,000 tonnes of clothing to landfill³.

If you want to manage your money better, while creating more sustainable spending habits, you’re not alone. A recent poll by Ipsos MORI,⁴ found 43% of people feel making environmentally friendly changes is just as important as taking cost saving measures.

Mindful spending doesn’t mean you have to give up all the things you enjoy. But it can make you more aware of the impact on your finances and the world around you.

What are the benefits of mindful spending?

Practising mindful spending can help you:

Take control of your finances

Being more conscious of what you buy and why, can help you feel more in control of your money. Planning a budget, which includes all the money coming in and out of your account, can help you see where you could potentially make changes and save more.

Use our budget planning tool to help.

Don’t overlook small things you can do, either. For example, if you regularly buy coffee out, a reusable cup can be a worthwhile investment and help reduce the amount of plastic being sent to landfill.

Some cafes offer a discount if you take your own reusable cup. You could add any savings you make directly to your savings pot.

Reach your financial goals

Making changes to how you manage your money can help you reach your financial goals. For example, you may want to build an emergency fund as a financial safety net or reduce your debts.

Using a budget and taking the time to think before you buy can reduce unnecessary spending and help reduce waste.

Explore: How to set and achieve your savings goals

Avoid financial regret

Delaying a purchase can help you make the right decision. You may find after a few days you’ve gone off the idea of buying whatever you had your eyes on. Or, you may decide you want to go ahead, with more certainty.

This can help you avoid the financial regret you might feel after jumping straight in and buying something without much thought.

Help the environment

When you consider that it takes 10,000 litres of water to make a pair of jeans⁵, or what a product has been through to get to you, like the manufacturing and transport process – changing how you shop can have a positive impact on the world.

Buying less can also help reduce overconsumption, and potentially lower the amount of plastic and other materials being used and then wasted.

Teach good financial behaviour

Spending mindfully and creating better habits, such as reusing or recycling what you already have, can inspire others to do the same. For example, you may influence children, family or friends by showing them how to budget, save money or reduce waste.

How to practise mindful spending

Thinking over your decision before you buy can help you avoid buyer’s regret. It can also help you feel more confident about your purchases.

Before you buy anything, you could try the PEAR exercise, devised by mindfulness business Awaris:

Pause

Before you decide to make a purchase, stop and think about it.
Examine

Ask yourself questions, such as: Do I need it? Will I use it? Is it sustainable? Can it be recycled?
Accept

Accept how you feel about a purchase. For example, you may feel disappointed if you’ve realised you don’t need the item you wanted, and that’s okay.
Respond

If you’ve decided to make the purchase, will you buy it now or wait and save up a bit first? If you don’t want to make the purchase, will you add the money you were going to spend to your savings? Whatever you decide, be kind and don’t judge yourself.

Other techniques, like the 30-wear clothing challenge – where you commit to wearing a new item of clothing 30 times, or the no-spend challenge – a period when you only spend on necessities, can also help you spend more mindfully.

Explore: 10 challenges to help you save money

10 ways to shop more sustainably

Here are some simple things you can do to spend more sustainably:

Get thrifty

Try charity shops or second-hand stores when looking for clothes. You can help reduce textile waste, while finding bargains.
Swap, donate or sell your unwanted clothes

If you’re clearing out your wardrobe, avoid putting unwanted clothes in the bin. Instead, look at websites you can use to sell or swap, or donate them to charity shops so they can be worn and loved by someone else.
Check the retailer

A quick internet search can help you find out more about the retailer you’re buying from, including their sustainability efforts.
Unsubscribe from emails

Sales can be enticing, so unsubscribing from emails and removing your card from autofill can take away the temptation.
Plan and prep your meals

Deciding what to cook for the week ahead can help you only buy what you need. Think about how you’ll use any leftovers too, to avoid waste.
Consider seasonality

Buying seasonal food, grown in the UK, can help reduce how far it’s travelled to reach you.
Shop locally

Shopping locally can also reduce transport costs. Look online to find shops that source local produce.
Check your budget before you splurge

Before you buy anything, check your budget to see if you can afford it. You could also think about whether the item is a ‘want’ or a ‘need’.
Think before you buy

Before you buy something, think about the product or experience. You could take a day, a week, or more to see if you still actually want it.
Set spending rules

Setting yourself rules on how you spend your money can give you more control. For example, not spending on payday might help you avoid that flush feeling when your wage comes in.