The use of money, whether for essentials or indulgences, is an inevitable element of life. People have widely varying spending patterns; for some, money is only spent on the bare essentials, while for others, it is spent on pleasures. A person’s emotional status is a significant factor in determining their spending habits. During the course of the year COVID-19, there has been a rise in the phenomenon of emotional spending.
During the COVID-19 period, when online shopping was at its pinnacle and people were stressed out as a result of anxiety, an increase in emotional spending was noticed. Most people who benefit from spending during anxious or emotional outbursts are women since women tend to spend a lot of money when they are not feeling good. The amount of money that a person spends every month will vary from person to person. Some people spend more on apparel, while others spend more on food. When they are feeling particularly emotional, different people have distinct spending tendencies.
Is emotional spending an issue?
When you are going through a difficult emotional time, and you want to buy something nice for yourself or give yourself a treat, the amount of money you spend during this time will be significantly higher than usual. After the cooling-off period, you will become aware of the magnitude of the expenses as a significant source of anxiety. You may have a pattern of buying goods you never want and won’t ever use.
Spending money in a way that makes you happy while you are spending it can sometimes be beneficial. Nevertheless, the amount of money you spend and the things you spend it on are important considerations you need to keep in mind. When you are inconsistent with how you spend your money, emotional spending can become an issue for you.
During times of emotional instability, if you overspend, you risk falling into a debt trap. Emotional spending can begin when there is stress in a person’s life, whether due to family, friends, or work problems. Shopping will help relieve the pressure and divert your attention when you’re in this kind of mood.
Because of emotional spending, you may tend to spend all of your money on things that are not necessary, even though you may have planned to utilize your money for other priorities in life. It’s possible that you could get carried away just because of emotion and wind up spending money on something.
Causes of Emotional Spending
Feelings that may engage in spending can be the source of emotional spending, and these emotions can occur as a result of the following behavioral changes in a person, such as a person may experience emotional spending if they:
- Depressed mood
- Low self-esteem
- Financial stress
Aside from this, emotional spending can refer to any behavioral pattern in which a person feels comfortable going out purchasing.
How to stop emotional spending?
Sometimes a person’s emotional spending might spiral out of control, and they might not even recognize it until the very end of the process. You can take some action to manage the pattern of behavior and reduce the amount of impulsive shopping you do by following these steps.
- Find ways to cope with emotions.
- Understand your requirements.
- Make a Budget
- Check your account balance.
- Savings Habit
1. Find ways to cope with emotions.
When you spend money when you are feeling emotions, like happiness or excitement, you are more likely to enjoy the experience of making purchases with your money. During the act of shopping, endorphins and other feel-good chemicals are created, which might make you feel happier. However, this is not an intelligent approach and is also not a healthy way to achieve sensations of happiness. You need to discover healthy ways to deal with your feelings and distract yourself from the need to go shopping.
You can try out the following ways.
- Call your friends or family members and have a conversation.
- Go for a long walk
- Listen to your favorite music
- Play your favorite game.
- Watch TV Shows
- Take a shower and feel fresh.
2. Understand your requirements
Everyone has specific needs, and everyone determines how much money they will need each month based on the revenue they bring in. Prioritize your requirements and arrange your expenses. If you find yourself in a stressful scenario that requires you to go shopping, you should first consult your budget before making any purchases. The method by which you distribute dollars among various expenditures will be the key to overcoming the guilt associated with spending money.
3. Make Budget
If you find that you experience intense feelings whenever you think about spending money, the best course of action would be to set aside money specifically for emotional spending. Create a spending plan for your emotional needs, in which you can assign a certain amount of money to each category. Utilizing this strategy will assist you in sticking to your financial plan and prevent you from making unnecessary purchases. Stick to the budget and ensure everything is done according to your plan.
4. Check your account balance
With the advent of mobile banking and payments made through websites and smartphone applications, if you do not carefully verify your account balance, it will be quite difficult to determine the amount of money currently in your account. If you feel like indulging in some emotional shopping, check your account balance to see if you have enough cash on hand to cover the purchase. Doing this can warn you about keeping control of your expenses and help you avoid making spending decisions based on your emotions.
5. Savings Habit
Putting money down in savings can make one happy. If you make an effort to save some of your income, you will appreciate the sensation of watching your savings grow over time. This can provide you with the confidence and emotional support you need to deal with any financial issues that may arise in your life.
Develop the practice of putting money away regularly. The idea should be to put aside some of your income first and then spend the money you’ve earned. If you intend to allow your savings to grow over time, you will eventually be in a position to have sufficient reserves.
Human emotions may be a powerful motivator when it comes to spending money. People become enthusiastic about the discounts and deals, and they spend money. They will frequently purchase items for which there is no immediate need. It is essential to have self-control over one’s spending habits to prevent the frivolous expenditure of one’s financial resources.
First, put aside money for savings, and then use that money to satisfy your spending needs. It is critical to remember the importance of financial savings even when you desire to indulge in emotional purchasing. When you go shopping to cut costs, you should keep an eye out for the most attractive discounts and offers.