Are You an Emotional Spender?

Are you an emotional spender?  Honestly, until about 6 months ago, I spent when I was happy, sad, bored…. it really didn’t matter what I was feeling.  I shopped  I have been working hard to stay on a budget but it is hard!

Did you know “The number-one problem in today’s generation and economy is the lack of financial literacy”?

Why??? The truth is, the problem is a struggle with self-control. You went to the mall to buy a birthday gift for your niece, and walked out with a new pair of shoes for yourself. You’ve tried a budget, but somehow you always seem to find something to spend money on that wasn’t in it. Can you relate? If so, consider these practical strategies to get your emotional spending under control:

1. Sleep on it.

If you think you just have to have it, whatever it is, make it your rule to sleep on your decision. Very few things are so urgent you can’t wait 24 hours to make your purchase.

2. Phone a friend.

Be accountable to someone!  You are more likely to reach your goal if you tell someone you’ve set one. So, tell a friend about your goal to stop digging yourself into more credit card debt. Then when you find yourself about to make another purchase you can’t afford, call them up and let them talk you down.

3. Never go shopping alone.

If you can’t trust yourself to phone a friend, then don’t go shopping alone. Of course, my biggest problem (and maybe yours) is online shopping).  The simple click to get what we want, NOW!  Headed to the mall, have someone with you who will hold you accountable.  Shopping online, STEP AWAY from the computer.  Leave it in your cart for 24-hours!  Refuse to use “retail therapy” to deal with loneliness, boredom, or disappointments. Find a new hobby which keeps you active, helps you to connect with others and builds new relationships. Focus less on accumulating stuff and more on enjoying experiences with people and things which matter most to you.

4. Plan for it.

STOP right now!  Take out a notepad and jot down the most important thing you need, and then the most important thing you want. Do you know how much each will cost? Jot it down. Not sure, find out.  How long would it take you to save for each? Practice delayed gratification (so hard for a recovering addict to do!). It forces you to appreciate the true value of your money, which will help you spend your money more consciously.

5. Keep a picture of your goal in front of you.

I have a vision board I carry in my planner so I am always reminded of what I am working towards.  Post pictures where you will see them on a regular basis so you are reminded of your goal. Whether it is on your refrigerator, in your purse, or on your bathroom mirror, make the vision plain and visible.

6. Take the credit cards out of your wallet.

I LOVE this saying…” if you want to get out of the hole you’re in, stop digging!”  If you’re in debt, it’s time to stop adding to your debt. And if you’re an emotional spender, keep your impulse purchases to a minimum by leaving your credit cards at home. No need to make it easy to charge it.  Better yet, cut up ALL of your cards (maybe keep one for emergencies).

7. Use cash.

I will admit, I am not a cash person.  I use my debit card for most things.  I actually feel like I spend less than when I use cash.  Crazy, right?  There are always those places which don’t take cards too so I can’t spend. Research shows though, forking over cash makes you spend less. As simplistic as it sounds, one of the best ways to curb spending is to determine your budget for various expenses (i.e., lunch, groceries, clothing, etc.), then take out your budgeted amount in cash.  Dave Ramsey’s system from Financial Peace University is AMAZING!   While it can be easy to lose track of how much you spend when you swipe a credit or even a debit card, cash forces you to count and keep track of what you spend in a concrete way.

If saving or spending is a problem, I challenge you to stop spending emotionally and start managing your money wisely.  Which of these tips were most helpful to you?

Have a ThirtyOne-derful day!

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