Financial discipline is not for the faint-hearted. We can plan, budget and lay out sound investment strategies all day long, but when it comes to following through, something happens.
You realise that this goes beyond impulse buying and that there is a distinct pattern of spending designed to regulate emotional states. This could be in response to stress, boredom, sadness, loneliness or even as a form of self-reward after achieving something.
While seemingly harmless at first, emotional spending that becomes a habit can significantly derail financial goals, lead to debt and contribute to a cycle of regret, eventually harming your mental health.
Identifying emotional spending requires a conscious effort to observe your purchasing habits and the feelings that precede them. Unlike planned purchases that can be justified, emotional spending is usually triggered by an underlying emotional state.
Common indicators include making purchases you immediately regret, buying items you do not need or, worse, cannot afford, experiencing a momentary high followed by guilt, or repeatedly finding yourself shopping when feeling emotionally vulnerable.
Overcoming this type of spending requires a multifaceted approach that combines self-awareness with practical strategies. The first crucial step is to implement the “pause principle.” Before any non-essential purchase, impose a mandatory waiting period of 24 to 48 hours.
This simple delay gives you critical time for the initial emotional surge to subside and allows for rational consideration of whether what you want to buy is a necessity and if you can afford it. This pause allows you to evaluate whether that purchase genuinely aligns with your financial goals or not.
Secondly, identify and address your triggers and underlying emotions. If stress leads to online shopping, explore alternative, healthier coping mechanisms such as exercise, connecting with friends, or engaging in a hobby. If boredom drives you to spend, find free or low-cost activities that genuinely stimulate you. Understanding why you are making those choices while feeling a certain way will be more effective than simply trying to stop the act itself.
Additionally, instead of viewing a budget as a restrictive set of rules, look at it as a tool for intentional spending that aligns with your goals. Allocate some funds for discretionary spending, including self-care and treats, but ensure they are within your means.
By Esther Muchene
