Is your spending out of control? Are you running out of money every month? Is your account in the red? Emotional spending can be the cause of being running out of money. Budgeting is paramount to be on top of your expenses. But sometimes they need for immediate gratification leads to getting behind.
Emotional spending is an act of buying things that make you feel happy. You will probably not need them, but you throw money at them to satisfy your psychological triggers such as leisure, boredom, keeping up with the Joneses, etc.
If your spending is more emotional oriented than need, you will have most of your money down the drain. Emergencies do not inform you before they knock at your door. If you keep spending money to satisfy your desires, you will end up borrowing money from direct lenders to tide over.
Here are a few steps you should take to overcome your emotional spending.
Identify the emotion that triggers
Do not need to blindly throw items at your basket when you shop at a store. At the time of picking items, you should ask yourself the following questions:
- Why are you buying it? Do you need it or you want it for the sake of status?
- Which emotion is driving you to buy this?
It is crucial to understand whether your purchase has a link to your needs or not. Identify the emotional triggers behind your purchase.
- You may want to buy things to protect your image.
- You would like to buy things just because you can afford them.
- You may buy things to maintain your status and class in society.
- You will shop more as you are a shopping freak.
If you know the emotional trigger behind your spending, you can choose an affordable alternative.
Understand the pattern of compulsive buying
Even though you know you should not buy a particular thing, there is a more significant desire to spend. It drives self-destruction behavior. Impulsive buying and compulsive buying are two different types of emotional spending though you can consider the former a pattern of the latter.
Impulsive buying is an act of purchase made on a whim. As you see a thing, you get immediately triggered to buy it. However, mental health issues generally trigger compulsive buying. It can be an addiction, anxiety, etc. This buying behavior does not focus on a thing you want to buy but on the act of spending. The primary triggers responsible for compulsive buying are unpleasant emotions.
This behavior is self-destructive. You keep spending money to mollify yourself when an unpleasant emotion overwhelms you. When you spend money out of negative emotions, you bury your head in the sand and do not bother about money falling short with each passing day.
How should you deal with emotional spending?
Money management is a global problem. There is no magic bullet to learn the art of financial management. If you do not keep tabs on your spending, you end up running out of money that leads to maxing out credit card limits and an endless circle of debt.
The first thing you need to do to deal with emotional spending is to control your emotions and psychological triggers.
- Try not to succumb to your emotional triggers. Tell yourself that shopping is not a solution to your anxiety and stress.
- Create a budget to have an idea of your spending limit and try to stick to it. A budget can give you a perfect reason to resist spending money out of guilt, stress, and anxiety.
- Understand that buying hedonic goods can improve your mood, but the effect is not long-lasting. Otherwise, you will fall into a debt trap.
- Stick to your grocery list. Do not be tempted to buy candies, sweet scents and bakery if you do not need it.
Budgeting is the most crucial step you should take to control your spending provided you stick to your budget. It can keep you from spending unnecessary money, yet you may face a cash shortfall during an emergency. Borrowing is always an option to tide over during an emergency. However, make sure that you take out loans with a reputed direct lender like London Cash Lender that offers loans at competitive interest rates.