You know you’re emotional impulsive spending, but how do you stop? If your spending’s out of control here’s a step-by-step process on how to kick your retail therapy addiction.
Here’s what you’ll learn:
- 10 steps to stop emotional spending
- How to practice mindfulness with money
- Ideas on what to do instead of impulsive spending
- How to give yourself permission to spend guilt-free
Stop emotional impulsive spending with mindfulness
Before adding an item to your cart to soothe your soul, be mindful. To stop emotional spending, let’s start by understanding your emotions.
1. Pinpoint how you’re feeling
Psychology Today describes mindfulness as the practice of being aware of your present state. You observe your own thoughts and feelings without judgement.
What feeling are you experiencing? Do you feel sad, overwhelmed, or afraid? Or maybe you just got a promotion and feel excited.
2. Give yourself permission to feel how you feel
Next once you know how you’re feeling, allow yourself to sit with those feelings. Feelings aren’t right or wrong. They come and go, but there’s power in being aware of what you feel. Openly accept your feelings versus spending impulsively.
For example, if you’re sad cry it out! You don’t need to push your feelings under the rug.
You’re only human and entitled to feel how you feel. In psychology this practice is called self-validating.
3. Brainstorm on what you need emotionally
After accepting your feelings, think of what you need emotionally. With emotional spending, most people spend when they need a pick-me-up or rush of excitement.
Start thinking of other ways you can get a boost in your mood. Here are ideas on ways to get what you need emotionally:
- Exercise (runner’s high is legit!)
- Call a friend to vent
- Take a bath
- Read a book
- Clean and get organized
- Go on a hike or walk in nature
- Adult coloring or hand lettering
- Watch a movie
- DIY projects
- Learn a new skill (comedy, woodworking, sewing, etc.)
- Play on adult sports team
- Join a recovery or support group
- Journal
- Volunteer with an organization meaningful to you
- Find a meetup
- Learn how to cook
- Garden
- Get a side hustle
4. Immediately ask for and pursue what you need
Once you’ve brainstormed ways to get what you need, then execute! Pick up the phone to call a friend and vent. Don’t wait for a friend to call you! Be proactive in clearly asking and going for your needs! A meetup group isn’t going to come knocking on your door.
With emotional spending you don’t delay on swiping your card! Turn your impulsiveness and need for instant gratification into immediate action.
For example, if you feel overwhelmed and clarified you need to feel organized, then grab the pile of unfolded laundry and get started!
Stop emotional impulsive spending by giving yourself permission to spend a set amount
After practicing mindfulness, it’s time to dig deeper and look at your spending. The next few steps you’ll learn how to define a set amount to spend on random items on the internet guilt-free.
5. Write down your income
Your income is straight forward and something you already know. Get a refresher and clear on how much you take-home each month in your household. If your income varies here’s how to manage money when your income fluctuates.
6. Write down your fixed expenses
Spending can seem out of control and unpredictable, but most everything you spend is 100% predictable and exactly the same each month.
There are six main categories for fixed expenses:
- Savings- money for your future
- Charity- regular giving
- Housing- rent or your mortgage (plus an average of your last three months electricity, gas, water, and trash)
- Insurance- health, car, life, or disability
- Services- cell phone, internet, gym, daycare, cleaner, lawn, subscriptions like streaming online
- Debt- car loan, student loan, credit card, payday loan, etc.
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7. Pay yourself first
You know saving money’s a good idea. If you’re stuck emotional spending, the end of the month comes and there’s nothing left to save! Start paying yourself first.
This is a common hack in the personal finance world. Automatically save a set amount of money monthly before you have a chance to spend it. I recommend saving a set 10% of your income and viewing this as a non-negotiable fixed expense.
8. Pay at least $300 extra to debt (before splurging)
In Best Money Class Ever, my signature 4-week personal finance class, I teach exactly how to pay off debt within 36 months or less. A good starting point in your debt-free journey is to pay all your minimums plus at least $300 or more extra to your highest interest debt each month.
9. Subtract your fixed expenses from your income
Add the total of your fixed expenses together. Including paying yourself first (saving a set amount of money every month) and at least $300 extra to your debt. Then subtract from your income. You’ll see how much money you have left for your flex expenses.
Flex expenses can be then divided into two categories.
Operating expenses- day-to-day purchases like groceries, gas for your car, happy hours, clothes, etc. I recommend taking a set amount of cash each week to pace your spending. I call this weekly cash.
Related Post: Learn this Brilliant System for Managing Money: Use Weekly Cash
Online spending- irregular expenses vary from month to month in these categories:
- Medical- prescriptions, copays, scheduled surgeries, therapy, vet, etc.
- Maintenance- home and car repairs
- Projects- home improvement like decorations, appliances, furniture, etc.
- Celebrations- holidays, birthdays, weddings, baby showers, and graduations
- Travel- flights, hotels, site seeing, retreats
- Fun- concerts, massage, sports games, spa, etc.
10. Get your online spending amount to spend guilt-free
Once you see how much you have every month for your flex expenses, determine how much you’ll spend on operating expenses with weekly cash. A starting point is to allocate $120 a week (or $480 a month) for day-to-day purchases.
Keep in mind some of this number will be used for medical and maintenance expenses. Plan for paying any major maintenance or medical expenses for the month.
What’s left is how much you have for online spending!
Give yourself permission to spend this money on whatever you want. It can be a massage or random gadget on Amazon!
Following these steps, you’re taking care of business with investing a set amount monthly, paying extra to your debt, and covering your regular fixed expenses. Then you know what’s left is for online spending on whatever you want guilt-free.
You can stop emotional impulsive spending. Try these ten steps now!
As always, remember you only live once. Be smart with your money now.
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