Story: The Start of Your 100K Journey

Starting your investing journey is exciting. The first 10K is a milestone that feels significant — and rightly so. But it’s also where many people stumble, often without even realizing it. That nagging thought, “I’ve done so well, I deserve this”, can quickly turn into self-sabotage. A holiday that wasn’t budgeted for, a tech gadget that looks irresistible, or a second-hand car simply because it’s your favourite colour — these small decisions can add up and undermine months of disciplined saving and investing.

I learned this firsthand. A few years back, I bought a £400 tablet. It was beautiful, sleek, and made me feel accomplished at the time. Yet, I rarely used it. Eventually, I sold it. The lesson? Without a clear goal and plan, spending can derail progress. If I had been focused on building my first 10K toward 100K, I would have paused, assessed the necessity, and likely delayed the purchase until it truly aligned with my objectives.

Why This Matters

Overspending at this stage isn’t just a minor setback; it can break the momentum you’ve worked hard to build. When you’re trying to get to your first 10K, every decision matters. Reward-seeking behaviour and comparison with others are two of the biggest psychological traps at this stage.

• Reward-seeking: You’ve worked hard to save, and it feels natural to treat yourself. But unplanned rewards often pull money out of investments, delaying growth.
• Comparison: Social media, peer groups, and societal pressure can trick you into spending beyond your means to “keep up.”

Self-sabotage in the 0–10K phase is particularly damaging because it undermines the habits and systems necessary for reaching your first 100K. Withdrawing from investments to fund luxury purchases is the fastest way to undo your progress. Building strong, repeatable habits now lays the foundation for scaling your wealth later.

Understanding the Psychology: Reward-Seeking and Comparison

Before tackling solutions, it helps to understand why overspending happens.

Reward-seeking: Celebrating progress is human. But when rewards aren’t planned or accounted for, they can erode your financial foundation. Impulse purchases feel good in the moment, but they rarely serve your long-term goals.

Comparison: Social media and peer influence amplify desires. Seeing friends or influencers flaunt holidays, tech, or cars triggers spending urges that aren’t aligned with your personal objectives. To counteract this, I’ve uninstalled numerous apps that encouraged mindless browsing or shopping. The result? Less distraction, fewer impulse purchases, and more control over my finances.

Recognising your triggers is the first step in avoiding overspending. Are you buying because you deserve it, or because you feel pressured or anxious? The distinction is crucial.

How to Avoid Overspending

Plan Your Treats

Not all indulgences are bad. Planning your rewards is key. For example: a meal out with friends, a massage after hitting £5K in investments, or replacing worn-out essentials like socks after 19 months of consistent saving can all be planned treats. These are aligned with your goals and reinforce the discipline required to build wealth.

Budget for Luxuries

If you want a holiday that costs £3K, budget for £5K and save deliberately. This approach has three benefits:

1. Flex your savings muscles: The act of saving builds patience and discipline.
2. Amplify excitement: Waiting and working toward a goal increases satisfaction when you finally enjoy it.
3. Improve judgment: Over time, you may realise that some luxuries, like an £8K second-hand car, aren’t worth the financial strain — even if it’s your dream colour.

Implement a Cooling-Off Period

Delay major purchases to evaluate necessity. When tempted to buy on impulse, give yourself a set period — 24 hours for small items, a week or month for larger ones. This pause allows your rational thinking to outweigh emotional spending.

Reflect on Alignment With Goals

Every purchase should be considered in the context of your 100K target. Ask yourself:

• Does this align with my long-term goals?
• Will this require withdrawing from investments?
• Can I plan and save for it without derailing progress?

If the answer is “no,” it’s a clear indicator to delay or reconsider.

Avoid Whims

Unplanned purchases are the hallmark of self-sabotage. These often pull you away from investing discipline, which is most damaging at the 0–10K stage. Every unplanned expense is a tiny barrier to reaching your first 100K.

Small Wins, Big Impact

Micro-Rewards

Planned micro-rewards maintain motivation while protecting progress. Examples include:

• A casual dinner with friends after hitting a savings milestone.
• A small, thoughtful purchase like bamboo socks after 19 months of consistent investing.
• Treating yourself to a massage or coffee, if it’s budgeted and accounted for.

These small, strategic rewards reinforce habit formation, rather than undermine it.

Tracking Progress

Tracking both spending and investing progress allows you to celebrate milestones without jeopardising your goals. Each deliberate, planned decision compounds toward your first 100K and beyond.

Patience Pays Off

The patience you build now — through saving, delaying gratification, and making intentional purchases — strengthens your ability to scale wealth later. By the time you reach the next 100K, these habits will be second nature.

Questions for the Audience

• Which recent purchases felt like a reward, but weren’t planned?
• Are you tracking your spending against your 100K goal?
• How could you implement a cooling-off period before big purchases?
• Which apps, subscriptions, or habits are triggering impulse spending for you?
• What small reward could you plan to celebrate reaching your next savings milestone?