Avoid stress-spending during the pandemic – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS

Avoid stress-spending during the pandemic

Mail

Print

Tweet

As human beings, emotions drive a lot of our financial decisions. And you know what we're spending a lot of time with during the quarantine? Our emotions.

If you've had a rough day and you're feeling angry or sad, you might buy a new outfit because — dang it — you deserve it.

If you're feeling joyful, you might spend as a celebration, but worry about whether you can afford it later.

During this pandemic, many people are feeling so fearful they've bought the stores all out of toilet paper!

These are just a few examples of emotional spending. Believe me, I've been there. But we should never base our spending on whatever we're feeling in the moment. So, here are four ways you can stop emotional spending dead in its tracks:

Window-shop

Even window-shopping can release a surge of dopamine, giving your brain the fix it craves. But this way, you get to keep your money.

Sleep on it

Wait at least overnight before making a purchase over $100. Stop to ask these three questions:

• Why do I want this item?

• Will I really use it?

• Does it fit within my budget?

If you're still excited about the purchase tomorrow, chances are it'll be there when you get back.

Make a budget, and stick to it

A budget doesn't limit your freedom. It gives you the freedom to spend money on what's important to you. As you're planning the budget for the upcoming month, decide how much of your income will go towards your true essentials, how much will go towards giving, and how much will go towards your money goals (like paying off debt or building your emergency fund). After those things are covered, make sure to budget for a little fun.

Put boundaries around your social media

Follow the people who inspire you, and unfollow the ones who make you feel like you need more in order to be happy. I guarantee you'll feel better about yourself, and save some money. Half the battle is knowing your tendencies and knowing how to help yourself.

Take my free five-minute money quiz to discover your unique money tendencies and learn which emotions to watch out for. I want you to feel equipped to stay focused on your goals, without letting your feelings in the moment, other people — or even a pandemic get in the way!

As a No. 1 New York Times bestselling author, host of The Rachel Cruze Show and The Rachel Cruze Show Podcast, Rachel helps people learn the proper ways to handle money and stay out of debt. She's authored three bestselling books, including Love Your Life, Not Theirs and Smart Money Smart Kids, which she co-wrote with her father, Dave Ramsey. You can follow Cruze on Twitter and Instagram at @RachelCruze and online at www.rachelcruze.com, youtube.com/rachelcruze or facebook.com/rachelramseycruze.

Rachel Cruze shares some personal finance tips on how to avoid stress-spending (File photograph)

Mail

Print

Tweet

You must be registered or signed-in to post comment or to vote.

Published August 15, 2020 at 8:00 am (Updated August 14, 2020 at 11:20 pm)

Avoid stress-spending during the pandemic

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon