Tuesday, June 15, 2010

Control Emotional Spending

Emotional spending occurs when you buy something you don't need and, in some cases, don't even really want, as a result of feeling stressed out, bored, under-appreciated, incompetent, unhappy, or any number of other emotions.

1. Impulse Buys
.....avoid making impulse purchases.....wanting to buy something you didn't already want before you got there, don't buy it. Make yourself wait at least 24 hours.....You'll often forget about the item as soon as you leave the store...

2. Keep the Ad Man At Bay
 Take steps to intentionally limit your exposure to advertising. The less you are aware of what's available for you to buy, the less likely you are to develop a sudden "need" for that item....If your spending problem is bad enough, consider unsubscribing from magazines, which are usually full of ads....

3.Limit Temptation.
.....limit your exposure to the situations that tempt you to spend....If you always find yourself spending more when a particular friend or relative is around, try to schedule free or inexpensive activities with that person, like getting coffee, cooking dinner, or going for a walk....

4.Make Yourself Accountable.
.. find ways to hold yourself accountable for your spending....Also, make a list of your financial priorities and put it in a place where you'll see it often....

5.Find Alternative Activities
.....try to identify what you're feeling when you want to buy something and choose a more constructive behavior that will help you deal with that emotion.... If you really just have to buy something, make it something simple and inexpensive,...

For some people, shopping is much more than a pastime - it's actually an addiction called oniomania. While it may not seem like a dangerous addiction, many of the psychological characteristics of compulsive shopping are identical to those of chemical dependency.

.....by becoming more conscious of your shopping habits, you'll develop greater control over your finances and you'll be able to really enjoy the purchases you make without the dread and guilt of having spent too much. 

Ref : http://www.investopedia.com/slide-show/control_emotional_spending/conclusion.aspx

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