This money-saving hack could save you over $700 a year - and it's in the palm of your hand

By Genna Contino

This detox can be good for your mental health - and your wallet

Nearly half of social-media users say they have impulsively bought an item that appeared on their feed. Experts say taking a digital detox can help you save hundreds of dollars in some cases.

When Jessica Dickson deleted social-media apps from her phone to curb her habit of scrolling throughout the day, she didn't just save time - she saved money, too.

"I didn't realize all the times I bought a small item [or] booked an appointment at a salon or reservation at a restaurant without thinking, just because it showed up in my social-media feed," said Dickson, who owns a mobile beauty service in Alberta, Canada.

Dickson estimates that her digital detox has saved her roughly $300 to $500 a month, now that she is no longer tempted to buy new things or try new restaurants every day. Financial experts agree that cutting out social media can tackle an underlying cause of overspending, as targeted ads on the apps provide personalized recommendations for products that you can buy with the tap of a finger.

Nearly half of social-media users say they have impulsively bought an item they first saw on their social-media feed, according to a Capital One Shopping Research report published in May. The average amount spent per year on social-media impulse purchases is $754, the report said, with more than a quarter of shoppers spending more than $500 through social media annually.

Financial advisers say they've noticed clients becoming more aware that social media is impacting their shopping habits thanks to economic pressures like inflation and job loss, combined with the relentless nature of targeted ads that seem to "remember" a product long after the consumer has forgotten it. Taking a break can help consumers escape the algorithm, they say, but it's important to build financial discipline before returning to the platforms to avoid falling into the same patterns.

See more: I earn $95,000 and have $41,000 in student-loan debt to pay off - but I can't stop shopping. Help!

"Inflation has forced people to recognize that every dollar counts, but there's another layer: Attention has become the most valuable commodity, and people are realizing how much of it they've been giving away," said Marcos Segrera, principal and wealth manager at Evensky & Katz. "Younger generations, especially, have grown up with constant digital selling. It's not novel or thrilling anymore; it's background noise."

How scrolling turns into shopping

Alexandra Rooney, a private client adviser at Main Street Research, said society has "moved on from 'keeping up with the Joneses' to 'Keeping Up with the Kardashians.'" Consumers aren't just striving to acquire wealth and material goods to keep up with their neighbors - many feel additional pressure to flaunt that status online to keep up virtual appearances.

Targeted ads on social-media platforms make this easy to do. Third-party cookies track your online activity to pick up on your interests and introduce you to new brands and products that align with your taste and, importantly, your aspirations. That's why you might see an influx of Lululemon or Alo ads on your feed after searching for a new workout set - the one that will help you get the lightly toned yoga body you've seen in your feed.

Taking a break from social media "allows individuals to reorient their lives back to their personal goals rather than what society tells them to want," Rooney said.

From the archives (August 2024): Consumers are still spending. But on TikTok 'underconsumption' is trending.

Disconnecting from social networks also means losing the convenience of tapping a few buttons directly from a post in your feed to instantly purchase an item, said Bill Shafransky, a senior wealth adviser at Moneco Advisors in New Canaan, Conn.

But that's the point. If shopping is less convenient, he said, you're less likely to do it.

"It's like revisiting the 1990s, when shopping wasn't as easy as clicking three buttons before the item was en route to your house," Shafransky said. "You had to actually look at the tangible catalog that came in the mail to see what was for sale or physically drive to the store. These additional steps kept the consumer at bay."

Reclaiming control over the algorithm

Instead of stepping away from social media, some people choose to try to manipulate their algorithms to prevent a bombardment of ads and avoid the temptation that comes with them, experts say.

"Gaming" the algorithm can take many forms. It can be as simple as shopping on a private browser or turning off third-party cookies on websites. Some people, however, go as far as creating burner accounts just for shopping to keep the cesspool of targeted ads separate from their main profiles where they interact with family and friends.

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Searching for products you're not interested in - like cat toys when you don't own a cat - can also potentially trick the algorithm into showing less-tempting ads on your main account, experts say. Unfollowing full-time content creators whose incomes are dependent on followers buying the products and services they're selling might help, too.

However, it's hard to fully escape the algorithm, says Catherine Valega, a certified financial planner and founder of Green Bee Advisory in Boston. Targeted ads can still find you on non-social-media websites, streaming services and gaming systems.

"Simply trying to game the algorithms is not enough," Valega said. "You don't necessarily have to delete your account forever, but uninstall and give yourself a detox for three months, for six months, whatever you decide. Probably, people will find that they actually feel happier and save money."

So you've deleted your social-media apps. Now what?

If you've deleted social-media apps but still can't shake the shopping itch, experts have advice for how to reframe your thinking and behaviors around consumption.

Shafransky says to think of digital detoxes as a diet for your finances. If social media is the junk food you're trying to cut out, budgeting and saving strategies are the fruits and vegetables you're trying to eat more.

"Deleting social media is the first step because if you already have these impulse-spending behaviors, you might find a way elsewhere or go out to a store," Shafransky said.

See more: Always picking up the tab or lending money you don't have? It could be 'financial fawning' - here's how to stop.

Less time scrolling means there's more time to form better spending, saving and budgeting habits, said Melissa Caro, a certified financial planner and founder of My Retirement Network. She suggests starting by taking stock of existing consumption behaviors.

For example, take note of when you feel most vulnerable to make an impulse purchase. Ask yourself: What prompted the feeling? Is it a necessary purchase or a luxury?

"Anytime something falls into that not-necessary category, which is really anything except for your food, basic needs and shelter, I say just wait 24 hours" before making the purchase, Caro said.

See more: 5 mental tricks to reset your relationship with credit cards as Americans pile on debt

Financial advisers also suggest finding an "accountability partner" - a spouse, friend or family member to share purchase decisions with whose role is to talk you out of acting impulsively. And setting a financial goal, such as saving for a vacation, can give you a bigger purpose to weigh spending decisions against.

If you find yourself really wanting to buy something, Valega recommends keeping a running list of items you want instead of adding them to your cart. Seeing a list of summer shoes in the fall, for example, can put an impulse buy into perspective.

"Say I just saw these cool shoes that I want to buy. I'd put them on the list," Valega said. "Usually what happens is just by putting them on the list and then giving yourself that pause, come October, you're like, 'Oh, well, it's too late for those anyway.'"

The most effective tips, however, tend to be the least exciting, experts say. Creating a detailed budget to understand your cash flow, separating fixed and variable expenses, can help you consciously decide how much you can afford in the way of discretionary spending, Shafransky said.

See more: TikTok's latest budget hack is 'dating for dinner' - which says a lot about love and money right now

"Figure out specifically how much money you can afford to spend on a monthly basis - which can handcuff you, in a way, of not going on a free-for-all spending spree," he said.

The immediate payoff that comes from disengaging from social media might feel like "coffee money" in the short term, but "good habits have compounding effects," Segrera said. "Take actions that make time work for you, not against you. From a broader perspective, young high earners can often save 20% to 40% of their gross income when lifestyle costs are still modest."

"The direct savings from avoiding targeted ads may not transform your finances overnight - but the behavioral shift it sparks can absolutely reshape your long-term trajectory," he added.

If you're just starting out on your money or career journey and have questions about how to navigate your finances, we want to hear from you. Write to Dollar Signs, MarketWatch's new advice column, at dollarsigns@marketwatch.com.

-Genna Contino

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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