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Happy. Saver. Stress. Spender.

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Published on November 04, 2021
 

How your mood can affect your spending habits

Did you know that your emotions can affect your bank account?

Really, they can.

Are troubles keeping you from having a good night’s sleep? Are you getting frustrated easily? If so, there is a good chance you’re feeling stress. Unfortunately, stress is a part of our everyday, fast-paced lives.
From a flat tire to constant phone calls to overdue bills, anything can trigger a stress reaction.

It’s important to recognize these stress triggers because they can affect more than your mood and your health, they can also cause you to spend, spend, spend!

Actually, research has shown that stress can cause two very different reactions when it comes to spending.

You either shop or you save.

How does stress affect your spending habits?
Our partners from GreenPath Financial Wellness published an article explaining how stress can affect finances. For some, it causes overspending, and for others, it actually boosts their savings. Realizing what your tendencies are can save you some money and potentially even more emotional turmoil.

Here is some of what the article had to say.

According to a joint study out of Rutgers and the University of Miami:

  • Stress causes people to use their resources to regain a sense of control. In many ways, stress is a response to a loss of control in a particular situation, and one way we cope with that is by spending.
  • Perhaps counter-intuitively, stress tends to increase people’s saving habits. This is to ensure that money is available when needed.

  • Reckless spending in stressful situations tends to take the form of increased spending on things people perceive as necessities. However, stress also alters our perception of what those necessities are.

If you suddenly feel the urge to splurge, especially during stressful times GreenPath suggests that you give yourself some time, perhaps 24 hours, to think things over before you make a big purchase.

Give it 24 hours
If you’ve spotted an item you just need to have, stop and say you’ll come back tomorrow to get it. This creates a nice buffer and will help you decide if it’s impulse buy to make yourself feel better or if it’s needed purchase.

Find another outlet
If you’re using shopping as an outlet for stress, try something different. … Meditation and working out are great options, but they may not be for everyone. Find something that works for you.

If you realize that you’re being unusually careful with your spending, that can be a sign of stress too. It’s less expensive than the alternative — the stress shopper — but recognizing that the desire to hold tight to your funds can be another sign that your suffering from stress. Recognizing that and dealing with it can lead to a happier, healthier, you.


Need some help setting up a Choice Goal within your savings account so you can prepare for unexpected expenses? Need to set up a budget so you can control your spending, especially with the holidays fast approaching? We can help. Give us a call at 877.243.2528.

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