Stanford University conducted an experience called the “Marshmallow Theory” that has been used many times to demonstrate the power of self-control in your financial and personal life. The experiment followed children who were left alone with a marshmallow and told that if they didn’t eat it they would get a second one 15 minutes later.
Some of the kids waited the full 15 minutes, some ate the marshmallow immediately, and others waited for a short period of time before eating it.
Years later, researchers tracked down the children and found that those with the willpower to wait to eat the marshmallow grew up to become more successful adults than the children who ate the marshmallow immediately.
So which of the children would you be? Can you resist the temptations of spontaneous and emotional shopping? Or can you resist the urge to spend and yield to a controlled budget?
Either way, here are 3 tips that can help you control spending so that you can resist that marshmallow.
- Build a budget. Make a list of all of your expenses and, based on your income, prioritize those that you cannot live without. For example, rent/mortgage, food, utilities and services, etc. As for the rest like funds for dinners out, entertainment and non-essential nice-to-have’s you will need to show restraint and discipline. Again referring to the Marshmallow Theory, maybe you need to avoid those situations because you know you will not be able to show restraint from spending. Or you can resist the temptations to spend when confronted by them.
- Hide away some of your pay cheque. Before you pay yourself, set it up so a portion automatically goes to a savings account. Ask your employer if they can help you with this. Your bank may also be able to facilitate this.
- When you shop, shop with a list. Then stick to that list. It may also help to avoid those upscale grocers that sell more than just produce. Attractive displays of decor accessories, clothing, and toys add to your list of temptations. You may ask yourself, “won’t that nice blue and yellow table cover look great on my table for dinner tonight? What about that linen shirt, it’s perfect for my dinner party!” Try not to be trapped by the allure. Remember that list and stick to the items on it.
For more tips on how to control spending read our blog article, “If you want to settle your debt, be prepared to change your spending”.
The most important part of the marshmallow theory is to understand how you would react to the experiment. You know yourself better than anyone. For the marshmallow eaters out there, stop making excuses for your spending. Instead, set up controls to facilitate financial discipline.
For more information about personal finance, budgeting and debt management, visit OCCA Consumer Debt Relief. We’ve helped thousands of Canadians resolve their debt for over a decade. We’re here to help!.
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