Warning signs of an Emotional Spender

What is emotional spending? It’s simply the act of allowing your emotional state to dictate the purchase of items; mostly, items you do not need. Similar to emotional eating, such as eating a tub of ice cream after you break up from a relationship, or you’ve had a difficult time at work and just need some comfort food.

However, despite the similarities between emotional spending and emotional eating, it is often more difficult for people to realise, or admit a problem with emotional spending. The reason is because emotional spending tends to be backed by a degree of justification.

Picture this - you’re crying while watching a late night romance, and eating an entire slab of chocolate

This is likely an emotional response, and there is little justification for the behaviour. Whereas instead of eating chocolate or ice cream you go to the shop to buy a new outfit, or outfits, you can justify your spending by simply saying, “I have a new event coming up.” “I want to have a new outfit to start dating again.” “I’ve needed a new dress for months.”

Whether your spending outlet is clothes, home décor, or fun trinkets, emotional spending is an emotional concern that needs to be addressed in order to keep you sane, and give you the strength to overcome your emotional state and manage your money management goals. And I don’t want to be coy, emotional spending has put many people into financial problems, as once it begins, it is difficult to end.

The first step in managing emotional spending is identifying the warning signs.

·      You have an impulse to seek immediate gratification: The need for immediate gratification is often a symptom of emotional spending, as emotions are what trigger immediate needs. If you frequently find yourself watching an advert and feeling as if you need that item now, or pass a snack aisle and suddenly need to satisfy your taste buds even if you are not hungry, this may be an issue.

·      “I deserve it”: If you find yourself saying “I deserve it” this is a clear sign of emotional spending. Sure, you may deserve to purchase something, but if this statement is your justification for a purchase, and especially if you say this often, you may want to evaluate your emotional state when, “You deserve it.”

·      Shopping after bad news: If your first impulse after receiving bad news is to go shopping, or crave something new in your life this is a big sign you may have a problem to deal with.

·      Buying beyond your means: Wanting to appear that you are more successful than you are, or competing with friends, family, or neighbours can often be very expensive, as well as a sign that you may have a problem that can cost you thousands of dollars, or more a year.

·      Returning your emotionally purchased items: This is a sign that encompasses several warning signs, and as a result can be overly concerning. There are only a few viable reasons why you should be returning an item: the size may not fit, you accidentally purchased the wrong item, or perhaps you bought the item for someone else and they already have it. Those are legitimate reasons to return an item. However, if you find yourself frequently purchasing items, and returning them to manage your spending habits, you likely have problems with emotional spending.

·      Buying items you don’t need: Lastly, if you find yourself buying items you don’t need, or worse, would have never bought before, you likely have an emotional spending problem.

So what can you do to help yourself?

If any of these warning signs ring true with you, then a good way to help yourself is by confronting the emotions and feelings that lead you to the spending. Identify your triggers and learn how to manage the outcome in a different way. Try to figure out what sets you off and identify when it’s likely to happen and have some alternatives in place to combat that emotion.

Some good ideas are going for a walk, playing some music, dancing, call a friend to talk, write in your journal, do some painting as a few examples.

Try some of these ideas next time you notice your triggers, channel the energy into something else that works for you and most of all, be kind to yourself in the process.

If all else fails, implement the 24 Hour Rule:

If you still feel the need to buy that ‘thing’, then wait 24hrs before purchasing it. Often the “immediate need” feeling goes away and when you come back to it 24hrs later you may find you no longer want it.

If you still buy it then you know it wasn’t on impulse and you had time to really consider it.

If you want more help or like the idea of having a finance coach who's got your back and can help you, please reach out by clicking here to book in for a free consult!

Annette xox