How Emotions Affect Our Financial Decisions, From An Expert
Don’t get me wrong; I believe you need a budget, but having a budget without looking at the emotional side of money is like putting a cast on your left leg when it’s your right one that is broken—it won’t really fix the issue that is hurting. And that can lead to the money yo-yo; paying off debt and then racking it up again or sticking to a budget for a period of time through sheer grit and determination until it’s not enough to keep you going and you just give up.
If you think about it, many of us grow up learning how to celebrate, soothe, and entertain ourselves by spending money. This is true even if you or your family didn’t have a ton of it—culturally, we are simply encouraged to spend in order to pacify ourselves.
I didn’t realize just how many habits I had created around these lessons. So without shopping, suddenly I found myself with a lot of time on my hands. And that time allowed me the space to actually check in with my emotions and my true needs in the moments I felt the urge to shop. It was such a powerful year for me: I created my company to share the knowledge I gained because when you uncover the emotional side of money, it’s a game-changer.
I’ve since done three separate years of no shopping. It’s become my method for getting grounded back into my emotions and spending habits, and although each time I learn something new about myself and my money emotions and relationship, the core lessons are always the same.