Have you ever bought something on a whim, then afterward wish you hadn’t? That could be a case of buyer’s remorse, or it could be a case of emotional spending. The latter is when you purchase something on an impulse without giving it much careful planning or forethought. Doing this can get you into big financial trouble. This doesn’t mean you can’t buy anything fun, it just means you need to have a good handle on your discretionary income, or money that you have left over after paying necessary expenses.
There are many ways to control impulse purchases and prevent getting yourself into debt. Some of these ways are:
- Pay close attention to the things you buy. Some people shop out of boredom. To avoid this, only shop when you really need something and keep a track of what you put in your cart. This includes the things that you “add to cart” online.
- Try not to overindulge in fantasies. It’s okay to want to impress a friend with an expensive dinner or wow everyone at work with a really nice new outfit, but don’t act these out because it can become costly.
- Beware of small purchases because they can quickly add up. You may feel less guilty about buying something that’s cheap, but then you may feel like it will be okay to buy more cheap things.
- If you treat yourself every now and then, you will be less likely to impulsively spend large amounts of money. Just plan ahead. If there was a pair of cute new shoes you wanted to get, save for it. You’ll feel much better about it and it won’t mess up your financial security.
- Acknowledge the feelings that make you want to spend more. If you notice the emotions that are making you feel the need to buy things, you might be less likely to act on them.
- Always keep your priorities in mind. There will be no shortage of bad days, but rather than seeing material things as a way to make you feel better, try focusing on your more important goals. If your goal is to get out of debt, then look at making senseless purchases as an obstacle in your way of achieving that goal. If you want to make a large purchase like buying a new car or paying extra on your mortgage, take the money you would normally spend frivolously and squirrel it away.
- Stay away from retail situations. Try to avoid going to the mall, shopping on eBay, or being drawn in by catalogs. All they want is to get your money and it’s so easy to overspend in those situations.
- Take the scenic route, or somewhere that doesn’t involve you traveling through a strip mall or near any place you would normally enjoy shopping.
Try also to come up with your own unique solutions. You could try reading a book to get you through a boring day rather than shopping. You could also just have a friend or two over and watch some shows or movies. There are many ways to have fun or get through the rough patches without wasting money on emotional spending.
Tags: emotional spending
