If you’ve ever spent an excessive amount of money just to treat yourself to something nice, you might have been caught up in emotional spending. This practice can leave underlying issues unchecked and negatively impact your finances. Use the following guide to learn more about this coping mechanism as well as when you should look for financial advice.

An Introduction to Emotional Spending

Also known as “retail therapy,” emotional spending occurs when an individual buys something because it will make them feel better. Whether you were in a heated argument with a significant other or bored at a monotonous job, treating yourself to a tangible reward might feel good in the moment. 

Even though you’re buying the object for yourself, it might make you feel deserving—for example, you might subconsciously believe that new clothes will make you more worthy of love or that a new car will showcase your potential for success.

Signs You’re Engaging in Emotional Spending

One of the motivations for retail therapy is the prospect that a new possession will change you for the better. While that new lipstick or suit might make you feel like a new person, it’s important to realize that material objects don’t define you. If you continue to believe that a better life is just one purchase away, you might be caught up in emotional spending.

Another sign of this financial issue is a constant cycle of purchases and returns. This may point to the fact that you can’t comfortably afford all your new buys and just purchased them for that temporary spark of joy or that you don’t actually want them—it was just the thrill of spending money that intrigued you.

Finally, many emotional spenders tend to make purchases to cope with being stressed out about money. It’s counterproductive, but sometimes this outlet is more enticing than dealing with an underlying issue. If you’re accumulating debt or behind on your bills, the best financial advice is to save your money and accept your current situation. Spending while you’re already low on cash might be your way of trying to feel like you have money to burn.

If you believe emotional spending might be a problem, Lead Life by Design can help. Shiela Wood is a life coach based in Jupiter, FL, who is dedicated to helping clients gain control of their future. With her financial advice, you’ll learn ways to manage your money and overcome your penchant for spending. To learn more about her nine-month course, book a consultation with Shiela or visit the website.