5 Ways to Curb Emotional Spending

Have you ever walked around a store, mindlessly grabbed and swiped for all the things you saw, got home and came out of your shopping blackout, looked at your bag of “goodies” and then had major regret? I mean, I don’t even wear hats…why’d I buy two?! Where’d this stuff come from?!😰

Emotional spending is when you spend money on things you didn’t even need or necessarily want! Maybe your story isn’t exactly like that, but we’re all guilty of doing it at some point and it can be a hard habit to break.

We work so hard for our money – and we should spend it on things we want. But the key is to make sure we’re spending it intentionally and not constantly chasing the thrill of swiping the card. There’s no worse feeling than getting to the end of the month and wondering where the heck all your money went.

Money is mental (if I had a nickle for every time I said that, I’d be years into retirement by now)! We have to identify our triggers and help curb them so we aren’t wasting our money on things we don’t need or even want. It’s all about balance!

What is Emotional Spending?

Emotional spending is the act of making purchases driven by our emotions rather than the rational side of our brains. It's that irresistible urge we sometimes get to buy something in response to stress, boredom, happiness, or even societal pressure (no, you prob don’t really need - or want - whatever new gadget, dupe or product you saw someone using on Tik Tok). 

When we’re caught up in cycles of emotional spending, we’re not being intentional with our money, and these purchases often leave us with financial regrets and a sense of losing control over our finances. 

With the right strategies, you can break free from the cycle of emotional spending and build a more secure financial future.

5 Ways to Stop Emotional Spending

Here are 5 easy things you can do to help stop emotional spending:

1) Unsubscribe from all those store emails

Your inbox gets bombarded with seemingly irresistible discounts and limited-time offers. However, these aren’t really deals. It’s a marketing strategy intentionally designed to make you feel like you’re missing out on something so they can keep you coming back for more.

Take control by unsubscribing from these tempting newsletters. By reducing exposure to constant sales pitches, you'll regain the power to decide when and where to spend your hard-earned money. Plus, who doesn’t love an empty inbox?!

2) Delete shopping apps from your phone

In a world of convenience, shopping apps on your phone can be a gateway to impulsive buying. Take a bold step and remove these apps from your device. Out of sight, out of mind. 

By eliminating the temptation caused by mindless scrolling, you create space for mindful decision-making and prioritize your financial goals.

3) Unlink your credit card

The ease of one-click purchases can be a slippery slope for emotional spenders. Make it inconvenient to complete the purchase by unlinking your credit card from your phone and apps. This way you literally have to get your booty off the couch, pick up the credit card and type all those numbers in…

This small but powerful step introduces an extra layer of consideration before making a purchase, allowing you to evaluate if it aligns with your true financial priorities.

4) Leave it in your cart for at least 24 hours

When that shiny object catches your eye, resist the urge to buy it immediately. Instead, add it to your online shopping cart and let it sit there for at least 24 hours. 

This waiting period provides an opportunity for reflection and reassessment. You'll often find that the initial desire fades - or you forget about it entirely, saving you from impulsive purchases and unnecessary expenses.

5) Create a list of things you REALLY want

Prepare a list of items that genuinely align with your values and bring you long-term satisfaction. Before making any purchase, consult your list and consider if it's worth delaying the purchase of something higher on your priority list. Chances are, when you think about how the money you’re about to spend on a new outfit you saw during a late night scrolling session won’t be able to go toward your next weekend getaway with your friends, or whatever other high priority purchase you want to make, you’ll be able to walk away. 

A Job for Every Dollar: The Zero Based Budget

To regain control over your finances and overcome emotional spending, creating a budget is crucial. I know, I know, the B-word doesn’t sound fun, but it helps make sure your dollars are spent in ways you actually want! One highly effective budgeting method - and my most favorite - is the zero-based budget. This is a budgeting approach where you allocate every dollar you earn to a specific purpose, ensuring that your income minus your expenses equals zero. This means that you give a job to every dollar, leaving no room for unallocated funds. 

Unlike traditional budgeting methods that may leave room for extra or optional spending, zero-based budgeting ensures that every dollar you have is assigned a purpose and directed towards your financial goals. Now this doesn’t mean there is no room in there for fun spending. You build in how much you want to spend on things like entertainment, dining out, shopping, etc. You give your money a job BEFORE it actually hits your account.

A zero-based budget gives you enhanced control and awareness of your spending, creates space for intentionality with financial goals, reduces impulse spending, and leads to better overall financial planning and flexibility. 

Here’s how to setup a zero-based budget to give you more control over your spending:

1) Track your income and expenses

Start by understanding your income sources and precisely how much money you have coming in each month. Basically figure out: a) How much do you bring in each month and b) How much do you spend each month. This doesn’t have to be fancy. You can literally write it on a piece of paper!

2) Categorize your expenses

Divide your expenses into categories such as housing, transportation, groceries, entertainment, and so on. This allows you to see where your money is going and identify areas where you can potentially reduce costs and spending. Psst: Once you get a grasp on your spending, you don’t have to get so granular. IE I now have mine set up so that I just spend $X on all discretionary things. IE I don’t need to set aside just $200 for dining out, $100 for shopping, etc. I’ll just say $X for all those things. Sometimes dining out is more, sometimes less. But it’s good to start with a more granular look so you really know what you’re spending on in the first place.

3) Assign every dollar a purpose

Start by covering your essential expenses, such as housing, utilities, and debt payments.

Next, allocate funds to savings and investments, and future purchases ensuring you prioritize your financial goals. 

Finally, distribute the remaining income to discretionary spending, but remember to do so mindfully to avoid excessive emotional spending.

4) Track and monitor

Once you've assigned every dollar, it's crucial to track your spending and monitor your progress. Regularly review your budget to ensure you're staying on track and making adjustments as needed. This process allows you to identify areas where you may need to cut back or redirect funds to align with your financial objectives. This takes me about 15-20 minutes a month total! The initial set up may take the longest because you’re starting from scratch, but it becomes super quick as you do it!

If you’re an emotional spender, you’ll be able to easily identify patterns and habits as you track and monitor your spending month to month.

5) Embrace flexibility

While zero-based budgeting emphasizes giving every dollar a purpose, it's important to remain adaptable. Life brings unexpected changes and expenses, so be prepared to adjust your budget accordingly. Revisit your budget regularly and be willing to reallocate funds to address new priorities or unexpected circumstances. AKA: your first budget def won’t be perfect, so go ahead and let that idea go now!

6) Stay committed and motivated

Budgeting is a long-term commitment, so it's important to stay motivated along the way. Keep your financial goals in mind and celebrate your progress. Remember that each step you take towards curbing emotional spending brings you closer to financial freedom and a more secure future.

Wrapping Up

Curbing emotional spending requires self-awareness, discipline, and a shift in mindset. It's about aligning your spending habits with your long-term goals and values. It does not mean never spending any money on impulsive or frivolous things. Life is too short to not spend the money you’ve worked so hard on the things you want. Just make sure it’s something you really want. 

By implementing these strategies and adopting a proactive approach to personal finance, you can break free from the cycle of emotional spending and pave the way for financial success.

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