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FinEdFriday: How Digital Detox Can Improve Your Finances by Resetting Your Spending Habits Thumbnail

FinEdFriday: How Digital Detox Can Improve Your Finances by Resetting Your Spending Habits

Over-saturation does not make someone more money-smart.

Smartphone usage increased dramatically during the pandemic as more people lost their jobs, were furloughed, or were adhering to stay-at-home orders.

While smartphones can provide endless entertainment, they can also be bad news for your budget. In fact, the combined global monthly amount that consumers spent on apps and games peaked in May 2020 at $9.4 billion, a 25 percent gain on the monthly average in 2019.

While that’s all fun and games (no pun intended), it may be time to do a “digital detox.” Here’s why it could be good for you mentally and financially, plus five tips to help yourself unplug.

5 Ways a Digital Detox Can Save You Money

Way #1: You're Exposed to Fewer Ads

If there’s a screen in front of you, you can’t avoid being exposed to advertisements. From sponsored content on social media to well-targeted email campaigns, advertisements are everywhere.

According to a recent report, 2018 was the first year that people around the world spent more time-consuming media on their computers and smartphones than on television.2 Because of this, companies have changed the way they advertise. More marketing efforts are being geared toward grabbing the attention of those who shop online, game on their phone and scroll through social media regularly.

By spending less time online, you’re automatically reducing the amount of ad exposure you’re receiving every day. Less exposure to ads means less temptation to purchase impulsively.

Way #2: It Builds Your Impulse Control

When you’re exposed to the same brand or product over and over and over, it can wear down your impulse control over time. The more often you’re exposed to something, the less “impulsive” the purchase will feel. Recognizing this fact is an important part of resisting any purchasing temptations.

In fact, studies on smartphone usage have shown that your impulse control is lessened with excessive use of your phone.3 With everything right at your fingertips, it can be harder to say “no.” Therefore, more time away from your phone can help build up your impulse control and remove the temptation altogether.

Way #3: You Won’t Experience FOMO (Fear of Missing Out)

By logging onto Facebook or any social media platform, you are exposing yourself to the ongoings of others' lives. Social media influencers flaunt new products or share their latest travels, friends post about taking weekend trips and wearing their most fashionable clothing, whatever it is your connections are doing right now, you’re seeing. This exposure could easily trigger the feeling of wanting to do the same thing or buy the same things as those who are sharing on social media. FOMO is short for “fear of missing out,” and it’s a very real phenomenon. You start to envy the people that you see living these lives and want the same for yourself. 

Of course, most of these experiences or products aren’t free. Therefore, your FOMO could soon translate to a need to spend money to achieve a similar result. If you didn’t log on in the first place, you wouldn’t experience those feelings, which will save you money by removing the temptation from your life. 

Way #4: It Can Help Realign Your Priorities

Do you find yourself mindlessly perusing shopping websites, and the next thing you know you have unnecessary items in your cart? If so, you’re not alone. While this can be harmless, it causes unnecessary temptation.

Spending time away from your phone or computer frees you up for more time spent with your family and friends, learning a new hobby or reading a book. These types of activities can bring you a much-needed mental break as you realign your priorities and reassess what’s most important to you.

Way #5: It Gives You Back Your Free Time

Do us a favor, go into the well-being app on your phone (most have it natively installed) and check out your average screen time hours over the past few weeks. Think of all that you could do with more hours back in your day? You could get more exercise or start a side hustle, focus on home improvement projects and more. 

5 Steps to Start Your Digital Detox

How do you begin this process? A digital detox can be quite a lifestyle change, but there are ways to get started and continue on with the new habits you are forming. 

Step #1: Find a Partner

Whenever you face forming a new habit, one of the most powerful experiences is starting the habit with someone else. Between built in accountability and shared reward, you are MUCH more likely to reap the benefits of a digital detox if someone else is joining you.  

Step #2: Count Your Screens

Doing a digital detox doesn’t just refer to your smartphone. It can include every screen in your life - your tablet, E-reader, smartwatch, gaming device, TV, smart display, etc. It might come as a shock to know just how connected you really are. 

Step #3: Ease Into Your Detox

For most, there are some logistical issues with trying to quit technology “cold turkey.” You need to connect with your families, friends, schedule meetings, work from home and complete other important tasks on your devices.

Start by setting specific times when you want to avoid screens, such as first thing in the morning or right before bed. In fact, studies have shown that the blue light is harmful to your eyes and increases your alertness at night, making it harder to fall asleep and ultimately to wake up in the morning.4 Increase your time allotted by 5 minutes each week.  

Step #4: Keep a List

One of the worst habits to pick up is the urge to grab your phone and shop immediately after thinking about or seeing something that you want.  Instead, keep a list (on paper or in an app) of items you want to buy, including their price tag.  Then choose a time (the best practice is choosing a time after you complete a task) when you can shop for everything on the list.  

Bonus #1: The longer you go between bulk shopping times, the more likely you will realize that you do not want, or need, some of the items on your list.

Bonus #2: This can help you shop with a certain items in mind, instead of mindless and directionless browsing.

Step #5: Get Back to Basics

Think about what you did before the era of smartphones and devices. Put away your Apple watch for a while and use a regular wristwatch. Switch to an analog alarm clock in the morning, so that you don’t have to have your phone alarm right next to your bed. Instead of reading books on your Kindle or Tablet, go back to the library and get the hard copies. It’s going to be a lifestyle change, but it will set the tone for your digital detox, making it easier to disconnect. 

While there is more involved when it comes to improving your finances, a digital detox can be an effective place to start. Utilize these tips and slowly but surely, your finances should start to improve. Your family and friends will thank you, too.

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  1. https://www.marketingcharts.com/digital/mobile-phone-114746
  2. https://www.wpp.com/wpp-iq/the-state-of-digital
  3. https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0241383
  4. https://www.sclhealth.org/blog/2019/09/why-it-is-time-to-ditch-the-phone-before-bed/

This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.