Many times, we find ourselves spending money based on how we feel. For me when I’m stressed, I like to have chocolate and on a good day I like to have a sweet tea or eat out. Assessing how our emotions affect the way we spend money can help us in making rational decisions when it comes to spending.
What is emotional spending?
This is when you spend money on things in response to your emotions rather than based on your rational needs. Emotional spending can be triggered by a range of emotions such as when a person is happy, excited, sad, angry, stressed, depressed, or insecure.
Both good and poor emotions can lead to overspending
If you are sad or stressed, you may find yourself purchasing comfort food or shopping. If your emotions are happy, you may celebrate by dining out or you may do something kind for yourself, even when your pockets can’t afford to do so.
Emotional Spending leads to more issues
While emotional spending can help you feel better in the moment, it can lead to more stress, more anxiety, and have a greater emotional effect; because emotional spending causes us to overspend, make impulse purchases, and can lead to more debt.
What are some ways to avoid emotional spending?
1. Find hobbies that doesn't involve money to help cope with your emotions- Such as taking a walk and spending time with nature, reading, exercising, bike riding, listening to music, painting, watching your favorite T.V show or movie, or anything that would make you feel better without touching your pockets.
2. If you’re in a happy mood, instead of dining out for a celebration, you may want to have a fun night in with family or friends to keep yourself from spending; or treat yourself to a small affordable treat.
3. Think about the future consequences of your actions and how your decision to spend will affect your finances.
4. Get a support group that can help you cope with emotions.
5. Use the 24-hour-rule and wait at least a day before spending and access if it’s a need or want.
These are just a few ways to help deal with emotional spending, you can always do more research to find ways to avoid emotional spending.
You got this!
Avoiding emotional spending can be tough when dealing with stress and other emotions but when we practice avoidance and make rational decisions concerning our finances, the resistance becomes rewarding, and our expenses will thank us later.
Have you dealt with emotional spending and how do you often try to avoid it? feel free to share your thoughts in the comments.
Discipline is Key
Yes I deal with emotional spending! I try to find ways to justify it but I often refer to tip #3 and that’s essentially just me asking myself do I really need this now and how long will it take me to replace what was spent..
Yes, I've dealt with emotional spending. The way I avoid it is not having Google pay on my phone and leaving my bank cards at home if I must leave the house. I also try to eat before I leave so I won't have an appetite when I leave just in case we go by a restaurant.
Great post!! I love the idea of finding free hobbies to deal with my emotions. This is so helpful because I was so tempted to spend unnecessary money yesterday.