I have been a victim of emotional spending. I have been able to learn  what my spending triggers are over time and by making conscious purchases. Recently, I rewarded myself because it was the end of the work week, I was happy, and had some “me” cash that I could spend. I went to Ulta to get a new OPI polish that I saw on Instagram :). I went in and only brought the exact polish I wanted AND NOTHING ELSE.

 A year ago, I would have went into the store to get the polish and walk out with two or three other items due to sales, the “gotta have it” attitude, and just because I could get it. That would be buying on impulse in addition to  emotion.I would have purchased things because I needed them, or simply rewarding myself, to purchasing things I did not intend to get. Its all fun when the items are going in the cart, until you get home and realize that majority of the items are not needed. Usually, this is not a satisfying feeling.  Walmart is a perfect example. People always talk about how they go into Walmart for one thing and end up buying the “entire” store.

I began to save more and use my money more intentionally when I recognized my spending triggers, impulse and emotion.  Now I budget my money to $0.00. If I needed something it needs to be in my budget. I stay out of stores when I don’t need anything. So, no more weekly trips to Target lol. I would go into Target and never fail to leave with something, even if it was Starbucks. When I do go in the store, I keep a list and try my best to stick to that list. If 1 mascara is on the list to purchase, I buy only one instead of purchasing two in black and brown.

What Emotional Spending?

Emotional spending is when you make purchases that you do not need as a result of an emotion.There is no technical definition.

How to spot emotional spending triggers?

Lets start with your bank account and credit card purchases. Look over your monthly statements for the last couple of months. When looking at these statements look for trends. You may see that you ate out  a lot or you spent a lot of money in retail. Apps such as mint.com actually track your purchases and give you a summary of your spending habits. Here are a list of triggers that may hit close to home for someone you know :-):

1. False sense of saving: Just because it is buy one get one 50% off doesn’t mean you need to buy more than what you planed to purchase. When you see this sale your eyes automatically light up and you think that the store is doing you a favor. Let me be the first to tell you that YOU are doing the store a favor. If a pair of pants costs $20.00 and all you need is that one pair of pants, why buy another pair and spend an extra $10.00. This is only a deal if you went to two pairs of pants. This is a trick that a lot of consumers fall to. I know store associates have been mad at me when I only buy one item when there is a sale. They always ask me if I’m sure that I don’t want to get the extra item at a lower price. It sounds great but if I only intended to spend $20.00 thats what I want to spend. This also goes for Buy one, Get One Free. If you do not have the money or need for an item, DO NOT GET IT. You do not need it, Trust me.

2. Retail Therapy: Retail Therapy is often associated with women and their feelings. When we are having a bad day we want to go to the mall and take it out on our bank account. This is an example of making a negative situation ( possibly creating bad credit) as the result of temporary feelings.  Jean Chatzky talks about four emotions that influence spending.

3. Scarcity: Macys and JCPenny’s are always having a door buster sell. The store tells you to get something TODAY because it wont be there tomorrow. They may also say this is only a 6 hour or 3 day sale. This makes consumers feel that they HAVE TO get to the store ASAP, or what they want will not be there. Half the time when we hear about these sales, all we know is that we need to be at the store at the crack of dawn. We don’t even know what we want out of the store. We may know that we want to shop for clothes but we don’t know exactly what type of clothes we are looking for. We are just there because it is a sale. 9 times out  of 10 we will leave the store with items we really do not need. This also goes for Black Friday. We will go stand ( some sleep but that will not be me) to get a “good deal”. I do not participate in Black Friday anymore. There are no real deals that you cannot get after Black Friday has passed.

4. Boredom: Simple, when people are bored and have nothing else to do, they shop. When you are bored, you want to walk around the mall. You then start to see store sales and think that you need to get the item at that moment, because it may not be there tomorrow or at least not on sale.

5. Trends: Almost everyone likes to be up to date on what is hot. People shop trends all the time. We see the new trends in magazines,stores, and on TV. We feel left out if we are wearing fashions from a year or two ago.

If any of the listed triggers fit someone you know really, really, really well then here are some ways to conquer emotional spending: 

1.Understanding your relationship with money.

Every person values money differently. This is usually a result of values and what was taught at a young age. Sit and think about what money means to you. Do you feel that money is invaluable and is meant to be spent? Do  you think that money is a great tool for investment and into your future and future generations? Your answer to those questions will more than likely determine how you spend money. You are not going to spend money emotionally if you know that you have to invest in your future. We are to be good stewards over what God has given to us ( Luke 16:10). This includes our finances also.

2.   Unsubcribe from all of those dang emails!

Cancel store emails. They send you an email everyday without fail to get you to purchase something. If you see a deal once, you will see it again. I brought some items from an online store as a result of email marketing. I thought I was getting a deal. Well a month later they ran the same exact sale. They got me!

3.List your Needs vs Wants

Needs are neccessities like having a roof over your head, having transportation, having clothes and food. Wants are things that you would like to have such as, a 7 bedroom home, a luxury car, known designer clothes, and popular name brand food. Raid your closets, refrigerator, and pantry to determine everything you do have. Then list things that you may want and things that you may need. Keep this list handy. Then next time you are going to the store, grab this list to determine what you really need to purchase rather than what you want to purchase. Needs Vs Wants Check List

4. Use the envelope System

Using cash will help to control your spending. You are more likely to think about purchases when you pay cash rather than use plastic. Create envelopes for all of your expenses including shopping. Place the cash amount that you budgeted into each envelope. You are to only spend the cash that you placed in the envelopes for what they were intended for. For example, You will have a gas envelope. You are to only use this money for gas. If there is money left over in the gas envelope,  place it in savings or save it for the next month. I explain the process here. 

5. Stay away from the mall and shopping centers

You do not have to stay away forever. Just don’t go when you don’t need to. Its as simple as that. This will eliminate many emotional spending triggers that we have talked discussed. If you need to go to the mall, park closest to the store that you need to go to so that you can get in and out. remember that just because its on sale doe snot mean that you need it ( I had to learn this).

6. Delay making purchases

When you do see something that you want and do not necessarily need, delay purchasing. Delay making a purchase for at least 24 hours. If you really want it you will go back t get it. This will take time, money, and gas. I am sure that this will prevent a lot of unnessary purchases.

Emotional Spending is nothing new and everyone has experienced at least one form of it before. Knowing your triggers and how to stop the behavior will in the end keep more money in your pocket and eliminate the need to spend money on things that you really do not need.

Which trigger, listed above, do you most identify with?