Whether you’d like to think so or not, how you feel can have a big impact on your spending habits. We’ve all heard of (and most likely have made) impulse purchases, but did you ever wonder why we do that? It has a lot to do with what we’re feeling inside. It’s no surprise that there’s a negative trend when it comes to the emotions listed below… negative thoughts can lead to negative consequences! Recognizing some of the feelings that can send you into a spending storm or derail your financial goals can help you avoid mistakes and regrets, no matter how small or large they might seem. Sometimes all you need is a little perspective!
1. Sadness – This is one of the most common factors that can lead to spending more than you should. You might be feeling down for whatever reason, and you’re looking for something to lift your spirits – maybe a new pair of shoes or a night out will do the trick? While a purchase might result in temporary happiness, it will only do damage to your bank account in the long run, especially if it’s done consistently. Work on solving the underlying cause of your problem instead!
2. Jealousy – At one point or another, I’m sure we’ve all been envious of something that someone else has… a new car, expensive clothes, a bigger house, etc. Sometimes this can lead to a sort of competitiveness, resulting in spending outside of our means. Instead of trying to keep up with others, use what you feel as fuel for decision-making and goal-setting. Do you want to go on a lavish vacation like Greg from Accounting did? Take a closer look at your budget to see where you can make changes, and set a new savings goal for yourself. It might take some time, but you’ll get there.
3. Guilt – I’ve felt this way from time to time, and it’s not always a bad thing. I’d like to think that my husband and I have done well for ourselves considering our young age (not without hard work, mind you) but I find that a number of my friends are still struggling to put their “big picture” together. Some things come easier for us that I watch others dream about having, and I realize how lucky we are. This makes us want to help. And we always do when we can, which is amazing! But the key words there are when we can. It’s wonderful to be able to help out a friend, but don’t do so if it’s going to take a financial toll on you. Try to lend emotional support instead. The thought will always be appreciated!
4. Embarrassment – I feel as though this is the opposite of the section above. Sometimes we feel compelled to spend more because we worry about what others will think of us – that they will judge us if we’re not wearing designer-label clothing or eating at the fanciest restaurants in town. The only way to let go of this is to be honest with not only others, but yourself. You know what you’re comfortable with and what makes you happy. Surround yourself with like-minded people, and they’ll be sure to understand, and even support your decisions!
5. Regret – It’s never too late to correct poor financial habits. Don’t dwell on mistakes you’ve made in the past. Instead, use that as motivation to change. You might not have been the best at saving a few years ago, but that doesn’t mean you can’t start now! Use the past to identify things you’d like to change or get better at.
6. Anxiety – Worrying about your finances too much can create a black cloud over your head. I often feel like this when I think about how much I still owe on my student loans. Sometimes I feel so overwhelmed by them, that I feel like I shouldn’t spend money on anything else, and I should throw all I’ve got at them. In reality, this isn’t always your best option. You have to take a step back and look at the big picture. While your goal is to be debt-free, don’t neglect your savings and other financial responsibilities. Budgeting is a great way to make sure you’re taking care of everything at once.
7. Overconfidence or excitement – It’s easy to get excited about looking ahead! Sometimes this can lead to spending before you’re ready, before it’s actually necessary. I encounter this all of the time with home improvement projects because I think of all the things I’d like to change or improve. A huge part of me wants to rush to the store and buy everything I need to tackle all the things, but I know that’s not financially feasible for us right now. Pace yourself! Working slowly a little at a time will only give you more to look forward to, without draining your wallet all at once.
Having and maintaining a positive outlook on your finances and your spending habits can help you to avoid some of the triggers above. How do you separate your emotions from the financial part of your life?
