Do you have the tendency to make purchases online when you’re bored, frustrated or upset? You could be dealing with emotional spending — and here’s how you can squash the habit.
In today’s episode of Your Money Minute with Tracy Stewart, CPA, I want to talk about how to spot and fix emotional spending habits.
When do you tend to go shopping online? Many people deal with emotional spending habits that cause them to make purchases they wouldn’t otherwise make if they were able to regulate their mental health. Credit card debt is very costly — and it can lead to even bigger mental and emotional health difficulties on top of the financial implications. Don’t let this happen to you.
My suggestion: Track your spending habits. Are you making a purchase online? Keep a sheet of paper near your computer (or better yet, tape it to your computer monitor) — and note how you feel as you click the Pay Now button. See how your moods trend over a couple of weeks and try to find a pattern. Are you upset? Frustrated? Bored? If so, let’s try to address those emotions FIRST — and then curb the spending.
Financial independence is unbelievably liberating. By getting your emotional spending habits in check, you can set yourself up to make wiser choices with your money (and protect your long-term financial future from insurmountable debt.)
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