Emotional spending is a real danger area for a lot of people. But, you might not even realise that’s what you are doing, at the time. It can present itself at any point, depending on the trigger and can ruin your budget within a matter of minutes.
Emotional spending is when you buy something you don’t need, or at some times even something you don’t really want to buy, as a result of feeling stressed, bored, unhappy, not good enough and a whole range of other emotions. Or, it can be as a result of being really happy, as a reward or treat for something. Depending on budgets and circumstances, we all spend money differently.
However, emotional spending is somewhat compulsive. An act done without really thinking, without considering the consequences, a purely in the moment spend. Especially if you are feeling low about something, that momentary high you get from spending can make you feel better. But, then the guilt can set in about spending money you shouldn’t have and can make you feel worse.
Another emotional trigger for spending is envy. Seeing someone with something new, perhaps a new phone or new bag, or something bigger like a new car. Maybe they’ve just booked an expensive holiday and are telling you all about it. This might make you feel the need to buy something or book somewhere as well. This is keeping up with the Jones’ and you really don’t need to. Take a step back, breathe and if necessary, distract yourself. If you find yourself shopping to compete with others, this is definitely an emotional response.
Something else that is particularly evident in my life at the moment is that I can spend more, a lot more, when I’m tired. When either [or both] of the boys have had a bad night, and I’m sleep deprived, my will power is so much lower and I’m much more likely to spend money or be tempted by something I see online. Lack of sleep can change our emotional response to some things.
Along the same theme, guilt can often be a big part of emotional spending. Many factors can play into this, but when you feel guilty about something, then buying something to make you feel better can be so tempting. Again, try to take a step back from the scenario, distract yourself and it will pass.
In an area which we should all know better, but being hungry can be an emotional spending trigger. It definitely is for me – I’ve got a post about this coming up actually – but if I go shopping and I’m hungry, then I will definitely spend more than if I ate beforehand. If I go to the supermarket hungry, then lots of extras end up in the trolley. If I go after lunch, then I am much more likely to stick to my meal plan and therefore my budget.
The whole point of this is not to stop spending altogether. That would be even worse! It would be like going on a really strict diet and then ending up binging because it’s too severe. This is about being more mindful about your spending habits. Identifying your spending triggers. I am working on this personally, as I have found things tricky of late.
Create a budget, that can be a bit flexible, so that you are in control of your money. Start tracking your spending habits, the days which are more likely to be spend days and reflect on it regularly. Having a budget will help you stick to your money goals and hopefully curb your need for emotional spending.
Use these budgeting resources as a starting point:
- How To Make A Budget
- My 10 Minute Budget Routine
- How Our Budget Works + A Free Budget Template!
- Expense Tracker
- No Spend Day Tracker
Emotional spending can ruin your budget if you are not careful, so focus on some positive steps to try and change and you’ll be able to avoid spending when you are feeling emotional.
Are you struggling with emotional spending? Have you got any suggestions you could add? I’d love to hear from you in the comments below!
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I try not to go out much if I’ve had a bad night’s sleep because I know I’m more prone to spending when I’m tired. I’m also far more likely to crave fast food, which is often a losing battle but at least it’s a battle I put up. That’s something, right?
I try not to reward myself too much because that’s definitely as bad a potential spending spiral as doling out cash because you’re bored or unhappy. Instead, I just do my best to spend intentionally and really think through as many of my purchases as possible.
I budget a little spending money monthly. That helped me limit my binge spending to an amount that is okay in my budget. It was better than saying no binge spending when I knew I was going to do some. With time and a bigger goal, I have been able to decrease this amount.
I’ve started doing this too – I allow myself a small amount of fun money each month 🙂