We all are emotional spenders sometimes. Emotional spending can be defined as any unnecessary spending that occurs when you buy something you don’t need or want due to your feelings, whether that be stress, boredom, happiness, sadness, etc. Don’t get me wrong, there is nothing wrong with splurging every now and then like when you get a raise or indulging in the occasional retail therapy. But if you don’t have the funds for it, emotional spending can very quickly become dangerous.
We all are emotional spenders sometimes. Emotional spending can be defined as any unnecessary spending that occurs when you buy something you don’t need or want due to your feelings, whether that be stress, boredom, happiness, sadness, etc. Don’t get me wrong, there is nothing wrong with splurging every now and then like when you get a raise or indulging in the occasional retail therapy. But if you don’t have the funds for it, emotional spending can very quickly become dangerous.
While entirely cutting out all emotional spending is probably unrealistic, there are steps you can take to scale back the potential impact emotional spending can cause:
Don’t play into advertisers’ hands: Every year millions of dollars are spent by advertisers trying to convince us to buy their products. Everywhere we look, we are bombarded with ads: television, magazines, billboards, and even on social media. Learn to look at advertisements with a grain of salt. Know what your needs and wants are independent of any advertising, and don’t be persuaded into needing anything.
Don’t make impulse purchases: Whenever you are in a store, stick to buying what you are at the store to buy. Browsing around other areas and products you don’t need is quick way to spend unnecessarily. A good way to prevent impulse buying is to give yourself a waiting time period. Making yourself wait at least a day before making an unexpected purchase will give you the time you need to evaluate your buying decision.
Stay clear of temptation: Limit your temptation to spend. If you find it hard to resist impulse buying while at the mall, don’t do your shopping in a mall. If you put yourself in situations to succeed, you will succeed. Tempt yourself unnecessarily, and you will probably succumb.
Stick to your budget: Impulse buying isn’t always bad, but it can sure be a problem if you don’t have the funds for it. As in all things, keep a well defined budget and know what your spending limit is. If you know how much you can spend, you will be less likely to impulse buy and spend money you don’t have.
All blog information is of the opinion of the Loan Officer and is not supported by Fairway Independent Mortgage Corporation
