Many of us are aware of the importance of fresh air and exercise. We choose healthy non-toxic cookware, practice mindfulness, and get outside for some exercise at least once a day. However, we often neglect to apply that same level of care to our financial health. If this sounds like you, don’t worry – this is an area where many of us slip on our healthy habits.
Buying things based on how you’re feeling rather than what you need is one of the biggest red flags of poor financial health. It can give you a thrilling high, but that rush is temporary, and the lows that follow can be crippling – emotionally and financially.
The good news is that by identifying your emotional spending triggers, you can face them and get them under control. To help you in this challenging mission, here are six common triggers for emotional spending and how to overcome them:
1. Emotional Manipulation From Advertisers
Sometimes, it’s not necessarily emotional challenges you have that are causing you to overspend. It’s the tactics used by marketers. To overcome this, you’d be wise to learn about emotional triggers advertisers use, including:
- Fear of Missing Out (e.g. “Only one item left, and it’s in 3 other carts”)
- Urgency (e.g. Countdown timers showing when a sale ends)
- Guilt (e.g. Show mum how much you love her this Mother’s Day…”)
- Instant gratification (e.g. “10x your growth in less than 30 days…”
With an understanding of these and other emotion-driven tactics, you can make financial choices that revolve more around your true needs and wants.
2. Excitement
We tend to focus on the negative when thinking about emotional spending, but did you know 44% of Americans say excitement is what causes them to spend emotionally? Feeling excited is great, but it’s quite a giddy emotion that can lead to bad financial decisions.
A quick way to gain control is to take a long, deep breath. If you’re alone, let your excitement out with a dance or some loud singing. Alternatively, try doing some exercise. Once you feel calm and level, revisit the financial decisions you were about to make.
3. ADHD
ADHD (Attention Deficit Hyperactivity Disorder) impacts around 2.6% of the population globally. People with ADHD have a natural drive to seek quick hits of dopamine. Ensuring your ADHD is treated is the first step to overcoming this problem. Making lists, using delayed impulse strategies and learning to say no, are all helpful too.
4. Peer Pressure
Comparing ourselves socially, especially on social media, is known to contribute to depression. It can also lead us to overspend on a lifestyle that we can’t afford. Identifying this kind of emotional trigger is important. Then, work on your confidence so you realize you’re more than enough as you are. You don’t need to spend more money than you have.
5. Dissatisfaction With Life
About 5% of Americans are dissatisfied with their lives. To cope with this, some choose to overspend, gaining brief respite from the short-term dopamine hits. The fact is, no object or financial expenditure will transform your life. Bigger changes – like a change in career, relationship, hobbies and more – can help you gain fulfillment that is much deeper and longer-lasting than flash-in-the-pan purchases.
6. Anxiety
Some people buy things to alleviate feelings of anxiety. Treating the underlying issue is the answer to this particular trigger. The first step is seeking a diagnosis, after which you’ll have various resources you can use to help, such as breathing techniques and therapy.
Emotional spending can be problematic if it remains uncontrolled. Do what you can to recognize your triggers and overcome them – the result can only be a healthier you, and a healthier bank balance too.