How to Stop Emotional Spending
A lot of the time, we tend to spend money when we are stressed or upset, to make us feel good. This is called emotional spending. It happens when we buy things not because we need them, but because we want to feel better. If this happens a lot, it can cause problems with money and make life harder. These purchases don’t have to be big to be classified as emotional spending; they could be something small like a regular coffee, which could add up over time. Identifying the find the problem and making the changes to move forward and combat that issue are beneficial to not only your bank account but also your emotions.
What is Emotional Spending?
Emotional spending means buying things to change how you feel. For example, if someone is feeling sad, lonely, or stressed, they might go shopping to cheer themselves up. This could be buying clothes, food, or anything that gives a quick happiness boost. At first, it might make people feel better, but soon after, they might feel guilty or worried about money and regret that decision.
Why Do People Spend Emotionally?
Nearly 70% of people admitted to spending money to cope with negative feelings. People spend emotionally because it helps them forget about their problems for a short time. When someone is stressed or upset, the brain looks for quick ways to feel good. Shopping and buying things can release a chemical called dopamine, which makes people feel happy. Unfortunately, this happiness is only temporary. After the excitement fades, the original issue still remains, but now they have the additional guilt and regret of spending unnecessarily.
What to Do Instead of Emotional Spending
The first step to stopping emotional spending is to understand your feelings. When you feel like buying something just to feel better, pause and ask yourself why. Are you buying something you need, or just trying to cheer yourself up? Try to find other ways to deal with your emotions. Combating this issue will help you create a clear budget and be able to stick to it, as it can remind you to think twice before spending money on things you don’t actually need.
What If I Can’t Stop?
If you feel like you can’t stop emotional spending, it’s important to start by noticing what triggers the urge. Often, spending is linked to stress, boredom, or sadness, and recognizing these patterns can help break the cycle. Instead of reaching for your wallet, you should look into healthier ways to cope, like going for a walk, calling a friend, or journaling. These can slowly replace the habit and help you feel more in control over time.
What About Payday Loans?
Payday loans are short term loans people take when they need money quickly, often to cover expenses before their next pay cheque. If you are emotionally spending and then turning to payday loans to cover costs, this can create a cycle of debt. However, if you are in a situation where a payday loan is the only option, here at LoanPigUSA, we can help. Click here to learn more.