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Can't Stop, Won't Stop Spending: Is It You or Your Emotions?

Overcome your emotional spending. Let's do this!

Author

Shailja
August 12, 2024

In partnership with

Let's talk money, shall we? Not the boring, number-crunching kind, but the kind that affects our happiness, our stress levels, and our overall well-being. It's about understanding the emotional ties we have with money and how to break free from the shackles of emotional spending. Welcome to ThriftyOwl.Club, where we explore financial mindsets and hacks, helping you enhance your financial acumen one hoot at a time!

Recently Nikki broke up with her boyfriend. She has been sad for a week. One night while sitting in her pain, Nikki opens Myntra (well, there's no reason to not open that app since it's been lying in her phone with a cart full of items a click away). She browses the app, adds more items to the cart, proceeds to checkout, and there comes a wave of instant regret.

Have you ever been in a similar situation?

Emotional spending is a habit that doesn't need any introduction. The money you spend over the estimated amount because of your emotional highs is called emotional spending. In such situations, our emotions of pain, anger, stress, overwhelm, fear, sadness, happiness, boredom, loneliness, etc., get an upper hand on our understanding. Such spendings often result in regret and a hit to your pocket.

The first step to overcoming these emotions is to recognize the triggers. Once you notice what the pattern or the trigger of the impulsive purchases is it becomes easier to deal with them.

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Taking Control of Your Finances

So, how do we shift from emotional spending to mindful spending? Let's break it down into actionable steps:

1. Identify Your Triggers:

  • Keep a spending diary: For a few weeks, note down every purchase, the amount, and how you were feeling at the time. This will help you identify patterns.

  • Understand your emotions: Are you spending to escape boredom, stress, or loneliness? Once you know your triggers, you can find healthier coping mechanisms.

2. Build a Strong Financial Foundation:

  • Create a realistic budget: Allocate funds for necessities, savings, and even some fun money. This gives you a clear picture of your financial health.

  • Set clear financial goals: Whether it's buying a house, planning a vacation, or building an emergency fund, having goals can motivate you to save.

  • Automate savings: Set up automatic transfers from your checking to your savings account. This ensures you save consistently without much effort.

3. Practice Mindfulness:

  • Delay gratification: When tempted to buy something impulsively, wait 24 hours. Often, the urge fades away.

  • Find alternative activities: Engage in hobbies, exercise, or spend time with loved ones to distract yourself from emotional spending.

  • Practice gratitude: Focus on what you already have, rather than what you lack.

4. Cultivate a Healthy Relationship with Money:

  • Educate yourself: Learn about personal finance. There are countless resources available online and offline.

  • Challenge your beliefs about money: Are you driven by scarcity or abundance? Shifting your mindset can significantly impact your spending habits.

  • Seek support: Talk to friends, family, or a financial advisor about your struggles. Sharing your experiences can be liberating.

Rewiring Your Financial Mindset

Overcoming emotional spending is not just about changing your behaviour; it's about changing your mindset. Cultivate a mindset of abundance, focusing on what you have rather than what you lack. Remember, true wealth is not measured in material possessions but in financial security and peace of mind.

It's okay to indulge occasionally, but it's essential to maintain control over your finances. By understanding your triggers, practicing mindfulness, setting goals, and building a support system, you can break free from the cycle of emotional spending and achieve financial freedom.

Remember, progress, not perfection, is the key. Be patient with yourself and celebrate small victories along the way. You've got this!