Emotional spending can lead you to blow a budget without realizing it. One moment your bank balance is in great shape and then all of a sudden you’re overdrawn (or in debt?) Many of us have been in that situation at one time or another. The question is, how did we get there?
Of course unexpected expenses crop up (and some of us have savings for those one-off situations), but what about the days when we’re feeling blue and look for any way we can to escape the emotion?
When we are in the midst of emotional spending we come up with a multitude of reasons of why it’s okay. But the truth is, we make purchases to escape the state we’re in to feel better, whatever the cost.
Here are some steps to help prevent blowing your budget via emotional spending:
- Ask yourself, what’s the motivation behind buying this item?
- Ask yourself, do I need it?
- Am I spending money I don’t have?
The next time the urge arises to spend money you maybe shouldn’t, make a conscious decision to walk away. Choose not to follow those impulses by asking yourself these questions and being honest with yourself. The more mindful you are about your money the healthier your bank account is going to be. Eventually you can break a pattern of spending that’s not serving you anymore.