What Is Emotional Spending? | Kati Morton

Emotional spending is when we purchase something in order to make ourselves feel better. We can find ourselves spending money when we feel angry, sad, underappreciated, or even bored. There can be certain rituals around when we spend and how, but the act of clicking “purchase” or swiping our credit card is a very impulsive and rewarding one.
We have even seen a spike in this type of spending since shopping online has gotten easier and easier. All of these “one click” to buy options make impulsive and emotional purchases more difficult to prevent.
There is an important distinction though, emotional spending is not compulsive spending. Compulsive spending is when we feel an urge to purchase items so often that it impairs our ability to function. Meaning we could overspend so much that we aren’t able to pay our bills, we could even accumulate so much stuff that we rent a storage unit or hide it all in our garage so people who come over won’t see it.

The Financial Diet Channel: https://www.youtube.com/channel/UCSPYNpQ2fHv9HJ-q6MIMaPw

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