Emotional spending refers to spending that is triggered by emotions and not real needs. When one is feeling bored, angry, sad, lonely, or even too happy, they may try to find an escape by shopping. As per Kavan Choksi / カヴァン・ チョクシ shopping may provide a momentary sensation of happiness or relief, but is generally followed by financial stress and regret. In most cases, emotional spending does not simply happen once or twice. In case it is not controlled, the habit of emotional spending may become a recurring pattern and gradually drain one’s wallet. Hence, it is prudent to identify signs of emotional spending early in order to wisely manage it.
Kavan Choksi / カヴァン・ チョクシ sheds light on a few tips to overcome emotional spending
Emotional spending is when people purchase things to deal with feelings rather than focusing on financial goals or real needs. Emotional spending is linked to overspending, impulse buying, or using shopping to cope with anxiety, boredom, sadness, or stress. Even though it may bring short-term relief, emotional spending can create long-term financial stress, as well as impact the overall mental well-being of a person, if it is not properly managed.
The first step to managing emotional spending is to identify the emotions that typically trigger the urge to go shopping. For instance, one might be prone to buying expensive food when they are bored or shop online to make themselves feel better after a fight with a partner. By recognizing such emotional patterns, one shall be more aware of the spending habits that are not based on needs. One can consider recording their mood every time they want to make an impulse purchase. This would help identify the root if the problem and explore ways to overcome it, without depending on shopping as a solution. Here are a few more tips that can help overcome emotional spending:
- Create a budget for emotional needs: It is perfectly fine to shop as a form of self-reward, as long as it is done in a planned manner. One may create a special “emotional shopping” budget with reasonable limits. For instance, one may allocate 5-10% of their income to purchasing items that they like but do not need. This would help enjoy the pleasure of shopping without feeling guilty.
- Postpone purchases and give time to think: Whenever one has a strong urge to shop because of their emotions, they must take a deep breath and take time to think. It would be smart to apply the “wait 24 hours” principle or at least wait one day before deciding to buy something unplanned. Usually, emotional spending urges go away after the negative emotions have subsided. Postponing purchases is an effective yet simple way to give one’s brain enough space to clearly think and avoid decisions that are based on momentary feelings.
As per Kavan Choksi / カヴァン・ チョクシ, one may also consider finding alternative activities to distract their emotions in order to manage emotional spending. Shopping is not the only way to deal with stress or sadness. One may also distract themselves by watching a movie, going for a walk, listening to music, and so on.
