Have you ever made a purchase to feel better? Or bought items because your friends have them?
If you answered yes to either of these questions, then you’re not alone. In fact, Self.inc reports that 77% of Americans admit to engaging in some form of emotional spending!
In the US, we live in a consumer-based society. No matter where you look (TV, Instagram, the internet) you receive messages that buying a particular product or service will satisfy your emotional needs and make you feel better. For many people, these messages act as emotional spending triggers that prompt them to buy impulse products and make other unplanned purchases.
Emotional spending (aka compulsive spending or binge shopping) is a shopping habit that occurs in response to negative or unwanted emotions. It can stem from a negative sense of self, too.
In an effort to control their emotions and feel better, these individuals buy products and spend money as a coping mechanism. Oftentimes, they use shopping to distract themselves from a situation, relieve stress, or simply get rid of their boredom!
Everyone is susceptible to emotional spending, regardless of their income or net worth. It can cause people to live above their means, buy big ticket items, or purchase products that they don’t even want or need! Sometimes, these emotional purchases can also rewind years of forward progress.
Since anyone can binge shop, it’s important to recognize what your emotional spending triggers are. By doing so, you’ll become more aware of your spending habits and can stop yourself before you buy. This will lower your burn rate and produce more savings which can get put towards your most important financial goals!
Below are 10 emotional spending triggers that can destroy your budget.
Have you ever been surfing on social media, watching everyone’s highlight reel, and seeing their latest purchase, then suddenly found yourself on a website hitting “Place Order”?
If so, then you’ve likely engaged in emotional spending. While scrolling, you may have been feeling down, inferior, or discouraged and used shopping to turn those unpleasant feelings into more pleasurable ones.
Resorting to instant gratification may seem harmless, but it can also be a precursor for more addictive tendencies. Each time you buy an item, your brain releases dopamine which makes you feel good and crave more. These feelings are powerful and they may cause you to overspend because you’re searching for happiness or excitement that you aren’t getting in other areas of your life.
For most people, shopping is fun. Depending on your money personality, you probably enjoy some aspects of going to the store and bargain hunting, comparison shopping, or making a big purchase.
But, shopping can become a problem when you do it to escape from more important issues. You may use emotional spending as a crutch or to put off more important responsibilities. Most often, there is a cost of procrastinating, and not tackling these responsibilities head on has the potential to turn small problem into much larger ones!
Another reason people spend emotionally is to appear as though they’re rich and wealthy or to fit in. Many times, they feel they need to keep up with the Joneses or else they’ll be looked down upon.
However, all too often people get caught up buying things they don’t want with money they don’t have to impress people they don’t even like. Not only is this damaging to their emotional and financial wellbeing, but it’s also a terrible financial strategy!
Another sign that you may be emotionally spending is that you’re never satisfied. You have a constant pull to make major changes in your life, such as moving to a new city, buying a better car, or changing clothing styles on a whim!
People who make major changes often do it to fit in with a new crowd or to boost their self-esteem. They may buy status symbols or make large purchases to deal with their insecurities through the material goods they own.
More often than not, these purchases act as a temporary fix to an ongoing problem and it won’t be long before they’re out searching for the next thing to buy.
As a tightwad, I love saving money and getting good deals. But, there comes a point when buying goods because they’re on sale turns into a problem and a complete waste of money!
For example, most grocery stores use BOGO marketing gimmicks to lure shoppers into buying more than they need. As time passes, these items go unused or will expire long before the buyer ever has the chance to consume them!
It’s normal to celebrate your accomplishments. In fact, I encourage you to! But, spending money as your only type of reward can lead to bigger issues.
Many times, when people achieve a goal, they go out and celebrate by making a purchase. While shopping, they get caught up in the excitement which causes them to emotionally spend and increases the chances that they’ll splurge. Not only that, but they may wind up in debt, too!
If you’re like most people, you head to the store with some sort of plan of what you want to buy. But despite your best efforts, you get distracted and arrive back home with more than you orignialy planned.
While returning items can help you recoup some of your money, it can also be a sign that you’re emotionally spending. More than likely, you’re experiencing strong emotions to buy while you’re shopping. But, once you’ve returned home those feelings turn into stronger one of buyer’s remorse!
Events such as getting paid, earning a promotion, or receiving a financial windfall can all be emotional spending triggers. Oftentimes, when people are flush with cash that it begins to burn a hole in their pocket, making them want to spend immediately!
Don’t get me wrong, there’s nothing wrong with spending money. You just have to determine what you’re willing to buy and how much you’re willing to spend. But, spending money simply because you have it usually leads to financial disaster.
If you spend all your money each time you earn it, how will you ever be able to build a cash runway and pursue your dreams? Most likely, you won’t have the time or money to be able to and instead, you’ll be one unexpected event away from having a financial hardship!
Have you ever had an internal debate over why you should make a purchase? Most often, these internal conversations are about items you want and you’re trying to convince yourself that it’s something you need!
When you have to explain or reason that a purchase is going to be a good one, then it’s usually not. Instead, it’s just an excuse to buy when you know that you shouldn’t!
As time progresses, many people get stuck in their spending habits and routines. Despite changes in their life, they continue spending in the same way they always have.
People change and spending money based on your old priorities and values doesn’t mean that they’re important to you now. Most likely, they’re not and have changed.
By examining your current monthly expenses, you can determine if you’re prioritizing the purchases that make you happy. On top of that, you can reduce or cut out the ones that aren’t and redirect those funds towards something that will!
If any of these strike a nerve with you, then it’s a good sign that you’ve engaged in emotional spending at some point. Don’t beat yourself up, most people have. The good news is that you’ve begun to recognize your triggers and you now have a few tools that can help you make changes for the better!
Which emotional spending trigger do you identify with most? Comment below.
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