Account for every coin to curb emotional spending sprees

It is Monday morning and you are on one of the busy streets in Nairobi. You are in a hurry to get to the office on time. Then you bump into a group of window-shoppers who have their eyes glued to an item on display. Curious, you make your way through the crowd and discover they are admiring the latest model of a trendy mobile phone.

Without being prompted, you step into the shop. After a brief chat about the phone’s features and cost, you fish your wallet out and pay for the gadget.

Shopping is your favourite pastime. Out of about five sales people who will visit your office this day, you will end up buying different merchandise from most of them. This routine is replicated everyday.

If the above situation does not apply to you, then you are a lucky one. But maybe you know somebody whose spending habits fit this scenario. The person is vivacious and amiable, but her spending ways too often go through the roof. When you go shopping with her, even just popping into a supermarket, you can never leave in a hurry because she is impressed by almost everything she sees and wants to buy it.

People who shop this way can be labelled emotional spenders. These are people who buy things they do not really need or want; they do it just because they have an inner need they want to satisfy, and believe shopping is the way to do that.

“Most emotional spenders do it for a number of reasons. Some believe they will impress others or look unique. Others are looking to build their self-esteem,” says Jane Kadzo, a financial advisor.

She also says there are people who are emotional spenders because it helps them cope with stress. Whenever they feel anxious, they are unable to control themselves and end up spending on things they don’t need in the belief that spending is the only way to calm down and find some comfort.

Gaudencia Nafula, another financial expert, gives more reasons for emotional spending.

“Some people blame it on the many advertisements that are on every page of a newspaper or magazine, billboards and on TV. Most of these ads are carefully designed to manipulate our spending habits, and it may not be far fetched to blame the habit on advertisements.”

There is a flip side to emotional spending. “It is no different from other social problems like binge eating or drinking. In the same way some people turn to heavy drinking when they have emotional stress or feel something is unfair or unjust, there are those who turn to emotional spending to distract themselves from a problem. This then becomes addictive,” says Nafula.

Since it can be addictive, an emotional spender will continue binge shopping as the habit is rewarding at the outset – your mood improves when you spend. This happens until the feeling cannot be reversed and the consequences start to be felt.

Experts say emotional spending can be a problem with time. When it causes financial challenges, it becomes a problem. Signs include inability to pay bills, running into debt and taking unplanned loans.

“In some cases, emotional spending can strain family relationships. Built up emotions can lead to careless spending and the other partner may feel ignored or just disrespected. This could lead to break-ups in marriages or relationships,” observes Nafula.

Just like other forms of addiction, emotional spending can be controlled. Experts advise you to work hard to stop impulse buying. Give yourself a time frame before you can buy new items. For example, take a day or two to decide whether you really need a certain item or not. If you do not think about it again, you most likely do not need it.

“Most promotions and advertising campaigns are aimed at hooking you into buying a product rather than offering any additional value to you. So keep away from situations that could prompt you to buy things you do not need,” advises Kadzo.

She adds, “You must learn to be accountable. Account for every coin you spend and ask yourself whether it was justified. This will ensure you have a list of things you need in order of priority and could help you spend less by avoiding unnecessary items.”

Keep emotional spending in check by being more conscious about your shopping habits. This is a sure way to gain control over your money, which leads to financial success.

When emotional shopping has taken its toll on you, it is time to devise alternative activities that can keep you off it.