If you find yourself constantly spending your money like you have nothing to lose and then wondering where it’s all going at the end of the month, you’re not alone. As it turns out, more than 70% of Americans have regrets about their spending. So, why is it so difficult to stop? Here’s a breakdown of the psychology of spending, and more importantly, how to take control.
Spending money can feel like a rush. This is because when we buy something fun for ourselves—whether it be a new pair of shoes we’ve been eyeing or a plane ticket for a fun vacation—our brains release a chemical called dopamine. This chemical makes us feel happy and makes us associate shopping with positive feelings. Of course, this dopamine hit is short-lived because as soon as we check our bank statements, we’re not feeling so great.
But shopping and spending money are heavily associated with a lot of different emotions. Some people emotionally shop. Buying something nice fr themsevbs when they’re feeling low or stressed can give them that instant gratification. But as teh saying goes, you can’t truly buy happiness.
So, how do we break this vicious cycle of quick hits of dopamine and then disappointment when the bill comes? Here are a few helpful tips:
- Know your triggers: Understand when you spend and why. Try replacing this habit with something else that makes you happy. If you replace the shopping with something else that gives you dopamine, like hanging out with a friend, going on a walk, or listening to your favorite song, you can rewire your brain.
- Wait before you buy: If you find yourself really wanting to buy something in particular, wait a couple of days before you purchase. See if it’s just that instant gratification you’re after or actually something you really want. Oftentimes, the excitement of spending the money will actually fade, and you realize it was just a fleeting feeling.
- Incorporate some no-spend days into your life: We don’t always realize it, but many of us spend on unnecessary items daily. Pick a couple of days out of the week or month to be “no-spend” days, meaning you do not pull out your credit card for anything that is non-essential.
Breaking spending habits is not easy and more than half of people in teh U.S. regret their spending, so don’t be too hard on yourself. Integrate a few of these tips to gain some control over your spending and you (and your wallet) can thank us later!
