How To Break The Emotional Spending Cycle

   Break The Emotional Spending Cycle

Is your wallet crying?

What are the frugal fixes for emotional spending?

Click on the sub-topics below to enjoy the post:

• Emotional Spending
  
• The Features
  
• The Causes
  
• Benefits Of Unemotional Spending
  
• The Cons
  
• Breaking The Cycle
  

Emotional Spending

Have you ever felt an urgent impulse to buy a certain kind of shoes, or wrist watch, or outfit - just because it's in vogue?

That's an example of emotional spending right there: you don't truly need it, you just want it for other reasons!

So what is it all about?

It's a spending activity which you allow to be driven by your emotions instead of by actual needs.

If you prefer, call it irrational use of money to buy things which are either not essential or not given enough thought and consideration beforehand.

Emotional Spending is usually fuelled by heightened emotions like stress, grief, happiness, fear, etc, and if it continues without being checked, may exert negative impact on anyone's finances. 

Its Features

1. Feel-Good Spending - when you expend money on  items or experiences (clothes, food, entertainment, etc) which give immediate pleasure, comfort, or happiness, ostensibly to  manage and reduce the severity of stress, emotions, or boredom.

2.  Egocentric spending - when you spend on luxury items, status symbols, and other irrational buying with the sole aim of boosting your self-image, ego, and social status.

3.  Buying things you don't really need.

4.  Purchasing somerhing without considering the cost, affordability, or financial implications and effects on your wallet.

5. Usually regretting after the action, especially once the effects must have begun to  bite hard.

6.  Overspending  -  making budget-unfriendly purchases, by exceeding allocated or availbale allowances and funds.

7.  Often using credit cards for buying and by so doing spending beyond your means and  falling into debts.

8.  Buying in pursuit of unreasonable and illogical satisfaction, which in practice turns out to be only temporary and fleeting.

9.  Secret and illegal spending, particularly with regard to partnerships and relationships by tampering with  joint accounts or family money, 

10.  Indulging in financial practices that are not goal-oriented but contrarily sentimental, aimless, unfocused, selfish, and usually unwise.

Common Causes Of Emotional Spending

If you are wondering what the root causes of our subject could be, don't sweat it. 

Below is a fillet of causative factors to satisfy your appetite for knowledge.

1. Some people indulge in emotional spending to relief or manage their stress, or rather use it as a coping mechanism for  situations which seem to have overwhelmed them.

Examples of suc activities include:

• buying something as a means of distracting yourself from stressful conditions, like expensive video games, virtual reality software, etc 
•  Treating yourself to regular expensive spa sessions with a view to relief yourself of work-related stress.

2. Next: acts of seeking to escape boredom, simply by buying things whether truly required or not.

Those who practice this obviously seek excitement or stimulation through emotional spending.

For example, they:

• buy new gadgets simply to try out the latest technology, though it adds no real value to their own goals
• embark on shopping sprees or marathons either alone or in company of friends 
• attend concerts out of mere whims or impulsively

3. Similarly, sadness and depression can also motivate someone to embark on emotional spending, in attempts to lift their mood.

This may be in the form of:

• buying latest expensive outfits to boost their confidence
• embarking on luxurious trips or weekend getaways for purposes of escaping sad and negative moods 

4. Another trigger for impulsive spending is Loneliness.

In moves to achieve a sense of connection or comfort, this entails buying things to enable somebody  to fit in or " to belong", which entails:

• purchasing expensive jewellery of luxurious items to feel "connected" to other people
• organising for yourself a high-priced solo dinner at a luxurious resturant
• online shopping and procurements.

5. Not only that, some guys acquire all manners of items to overcome anxiety.

Obviously they do so with intention to distract themselves from worries. 

To achieve this, they will:

• obtain (at costly prices) puzzles or games that can calm their minds.
• purchase new paperbacks, books, or blockbusters to help them to escape into a different world.
• enroll for regular relaxation classes such as yoga, meditation, etc.

6. Moreover, Low self-esteem oftentimes push one to try to derive validation by owning possessions.

This can be demonstrated in several ways, including:

• securing designer items,  clothing, or accessories so they could feel more confident.
• getting a talk-of-the-town new car or luxury item so they could impress  their colleagues and associates.
• undergoing makeover or styling sessions to boost their self-image. 

7. In a related development, "Anger" and the desperate desire to mitigate it, may also compel somebody to utilize emotional spending as a  mode of expressing frustration.

This is called retail therapy, which you may regard as a shopping exercise during which buy special things for yourself to improve your mood, reduce stress, and boost self-esteem.

Examples include:

• Using paid aggressive or intense video games to facilitate the release of  anger.
• enrolling for a new gym membership or fitness equipment to enable you blow off some troublesome steam.
• paying for  high-adrenaline activities like skydiving, rock climbing, bungee jumping, etc, just to enjoy the excitement, energy, and  adventures they offer.

8. Sometimes too, it can be expenditure meant to reward yourself for a job well done.

You know how easy it can be to slide into over-indulgence after a good event, occasion, or performance.

In a bid to celebrate, you may find yourself:

• staging celebration parties and popping expensive champagne or wine 
• ordering for a new outfit or accessories for a night out or painting the town red.
• shopping online for high-cost consumables, gourmet food or desserts to pamper yourself.

9. In addition, the fear of missing out (FOMO) may negatively influence someone to succumb to emotional spending, with the intention of keeping up-to-date with social trends.

To do this naturally involves: 

• securing any good or  latest smartphone or gadget to enable you to stay connected.
• attending paid concerts or events to avoid missing out on societal euphoria or for social fulfilment.

10. Finally, traumatic history or memory may equally account for certain emotional financial moves or commitments.

Actually designed as a subconscious coping mechanism, it entails:

• stocking your home with excessive amount of food or household items, due to past scarcity or hunger and the desire to ensure it doesn't repeat.
• installing expensive security systems or safety measures around your home, because you were robbed in the past and to prevent it from happening again.
• shopping online for self-defense classes, workshops, or tools, because you want to be able to protect yourself if you were ever attacked or assaulted again.
• registering for professional help, like therapy session, or counseling, to enable you to address unresolved past emotional pains, distress, and shock.

The Cons Of Emotional Spending

1. In the first instance, constant acts of emotional spending may lead to accumulation of debts, resulting from Credit card bills and loans.

2. Secondly, it fosters financial instability, including insolvency or bankruptcy. 

As a result, one may begin to experience difficulty in  paying bills and managing personal finances.

3. Similarly, subsequent  financial challenges and cash flow problems arising from emotional spending may create constant worries about money.

In return, this could result to stress and anxiety. 

4. By and large, using joint or family funds for impulsive expenditure can easily create arguments  and cause serious relationship problems.

5. Likewise, the after-effects or repercussions of sentimental use of money usually ends in regrets, especially because of guilt and shame.

Consequently it may plunge someone into rock-bottom negative feelings or  Low self-esteem.

6.  Besides, when money and scarce resources are emotionally expended where they are not needed, the wallet suffers the brunt.

Money will end up not being available for savings and investments.

Therefore good opportunities for development and growth will be missed.

7. Moreover, it damages one's credit score.

This is because of subsequent cash crunch, which leads to inconsistency or lateness in repaying loans and debts, thus negatively affecting one's credit rating.

8.  Furthermore, emotional spending diverts and wastes funds meant to achieve financial goals. 

For instance, one may no longer be able to save for retirement or owning a house,  or to implement other financial goals.

9.  Moving on, it may negatively affect one's mental health.

Consequential developments such as cash or liquidity crisis may create physical health issues and illnesses relating to stress or distress.

10.  To wit, unplanned expenditure habits could  eventually generate post-purchase feelings of emptiness and hollowness.

That happens because the  emotional spending (by being mainly targeted at  WANTS) fails to satisfy actual needs or goals.

11.  More worrisome, the so-called satisfaction derived from emotional spending sprees or activities does not last long, especially when the adverse and punitive  realities set in. 

12. On a final note,  once emotional spending  gathers momentum through constant repetition, it creates  a cycle of  unnecessary and wasteful spending on meaningless, often useless items. 

The Financial Benefits of Unemotionall (Rational) Spending

What do you gain by resisting Emotional Spending habit?

Let's now examine some of the upsides of rational (as against emotional) spending.

1. You will find it easier to avoid falling into debts, as well as lowering or eliminating outstanding balances of existing debts and loans.

2. Resisting impulsive spending frees up money to enable you to increase your savings, build an emergency fund, and establish long-term savings.

3. It increases your debt-worthiness status, by  improving your credit score.

That will place you on better financial standing and give you access to more credit to implement your projects.

4. Further, unemotional spending allows you to enjoy less financial stress, gives you more choice and financial freedom, and  brightens your opportunities to achieve your goals successfully. 

For example, it enhances your ability to buy your dream house, invest, travel, etc.

5. Again, it empowers you to have more disposable income at your disposal.

It means you will now have more leeway to stretch your financial muscles and available money for hobbies, entertainment, and other activities.

6. Undeniably, spending rationally will reduce your  financial anxiety and give you peace of mind,  now that you know your finances are stable.

7.  Furthermore, like a filled stomach which deviantly looks down scornfully on hunger, healthy expenditure attitudes will give you more confidence and control ove yourr spending habits.

8. Relatedly, being financially rational will additionally improve your budgeting skills.

As a matter of fact, it  boosts your ability to effectively manage your income and expenses.

9. To round up, it gives you financial security.

Now you can be rest assured that you truly possess a strong foundation on which to  build and rely for  future financial well-being.

Practical Strategies to Break The Cycle Of Emotional Spending

Having come this far, now it's time to ask:

What are the frugal fixes we can apply to console a crying wallet?

Let's identify some of them.

1. Be self-aware. 

Study yourself, understand  your spending patterns and identify your emotional drivers.

This is the starting point for self-control.

2. Be intentional and scientific about knowing where your money goes, or how it is being spent.

Keep meticulous records, track your income and expenses, always  stay on track to be able to account for your finances.

3. Develop an attitude of delayed gratification, which means you should exercise caution, wait and assess your needs first.

Ultimately you ought to resist all temptations to start rewarding yourself or spending on immediate pleasure every time you score a goal.

Rather, you should conserve funds and focus on long-term goals.

4. Alternatively, instead of trying to massage your bruised emotions by throwing money around or at it, why don't you utilize healthy coping mechanisms like physical exercise, meditation, hobbies, socializing, etc?

They could be therapeutic and very effective indeed.

5. Needless to say, we all do require financial education.

Knowing as much as we can learn about aspects like budgeting, saving, and investing will go a long way to equip us with the right mental tools and attitudes to effectively manage our spending habit and resources.

6. Invariably, nothing's wrong in consulting a knowledgeable and financially prudent partner.

To discuss your spending habits with such a fellow can assist you to become prudent and accountable.

7. Absolutely, you must set financial goals. 

This move helps you to have clear objectives to work towards and makes it expedient for you to control your spending habits.

8. A further step here: dialogue with yourself.

Give yourself regular and unrelenting positive self-talk.

In simpler terms, replace your negative thoughts with positive affirmations.

9.  Certainly, you should cease massaging your ego or making egocentric buying.

It promises no economic value and it's time to concentrate on real needs, and budget-friendly behaviour  which can impact positively on your desire to succeed in life

10.  Finally, in order to address issues having to do with outstanding or unresolved emotional issues or past trauma, it is imperative we seek professional assistance and go for therapy. 

Conclusion

To conclude, considering the enormity of damage which irrational and emotional spending can inflict on one's finances, I am of the view that your wallet will cry less if you implement the recommendations we have offered in this post.

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