Posted on January 30, 2023
Emotions are a very common culprit of ruined budgets, and we have all fallen victim to emotional spending at one point. Triggers vary from person to person for example a bad day could lead to one of the biggest culprit’s retail therapy that is supposed to help you feel better but that’s not always the case, on the flip side there is need to reward yourself for an achievement.
This need to spend unnecessarily as a reaction to emotions can be changed, through proper budgeting where you don’t only factor in utilities, investments, savings, pension, debt repayment and all the other important avenues your money needs to be channelled to, to ensure financial success. You should also factor in money for entertainment, vacation and purchases that you want to make be it household or personal, that way you to get to reward yourself for all your achievements with a vacation or a purchase that is actually planned for instead of buying your tenth handbag while there are some in your closet that you haven’t made use of or purchasing your fifth watch just to add to the collection. Planned purchases are more thought through and mean so much more once you finally acquire what you want.
Another trigger is sales and while they are good for your wallet when they are not sales scams, they still need to be planned for. Very often we see sales signs and we buy things that we don’t need or something that we do need but that purchase takes money out of your savings for the month, and we rationalize the purchases as ‘’I could not leave it because it was a really good price”. The truth is there will always be another sale probably with even better prices, so next time be patient and just wait to accumulate the needed amount.
All the best as you break bad habits and propel yourself toward financial freedom.