Do you find yourself curbing your mood by spoiling yourself? Emotional spending is a time old mistake that can undermine your financial well-being.
Emotional spending is in essence, buying something we don’t need as a result of feeling stressed or under-appreciated in our daily lives. The emotional drive that leads us to focus funds on personal enjoyment and gratification, rather than realistic needs. Manipulated by images and messages in the media, as well as our emotional stability, we seek out to justify our worth buy spoiling ourselves with food, drink or a host of consumer items. Often resulting in some “well-deserved retail therapy”, this can lead to a financial hard place where your money is wasted on items that are, for the most part, meaningless.
While rewarding yourself with that new phone or an expensive meal can often be exactly what is needed, there are many other ways to up your mood without draining your bank account. Whether taking a morning walk, getting some exercise, try find something productive to take up your time so that shopping ‘til you drop is not an option.
Often while out and about we see something fantastic. No matter what it is, you feel that this will brighten up your day and you must have it. While treating yourself to something nice is great in the short term, buying on impulse means you probably aren’t considering the long term implications of spending that money- rather focusing on your current mood or state of mind. It can often come back to bite you when closer to month end and your money starts to run dry.
While never bad to reward yourself when it’s deserved, emotional spending can impact your ability to pay bills and take care of your daily needs. While most people are guilty of this to some extent, take note of these recognisable elements so you can keep emotional spending under control.