What is Emotional Spending?

When you're feeling upset, you might buy something to feel better. That's okay sometimes. Grabbing takeout after a rough day won't hurt your wallet if you don't do it too often. The problem starts when emotions drive too many of your spending decisions.

Emotional spending happens when feelings push you to buy things you hadn't planned to buy. If this becomes a habit, it can mess up your money situation. You might end up with debt, have trouble paying bills, or struggle to reach your financial goals. Here's what emotional spending looks like, when it becomes a problem, and how to prevent it.

What is emotional spending?

Emotional spending is just what it sounds like. It's buying stuff on impulse when you feel stressed, anxious or sad. Research shows that stressed shoppers spend more on things they see as needs. They might do this to feel in control when other parts of life seem chaotic. Happy feelings can lead to overspending too. When celebrating, you might ignore your budget and tell yourself you deserve to splurge.

Either way, emotional spending can hurt your finances. Watch for these warning signs:

• You buy things on impulse and regret it later

• You're taking on new debt or can't pay off what you already owe

• Spending money makes you feel better when you're upset (but only for a short time)

How to stop emotional spending

1. Stick to Your Budget

A budget is simply a plan for your money. It helps you relax knowing your bills will be covered. You could try the 50/30/20 plan, a two-account system, zero-based budgeting, or a budgeting app. The point is to set limits on spending and live within your means.

If you struggle with your budget, you might need to:

• Track what you spend

• Check your budget weekly and plan for upcoming expenses

• Sleep on big purchases

2. Find New Ways to Handle Your Emotions

All emotions can trigger overspending. One study found people would pay up to 30% more for items when they felt sad. Noticing this pattern is the first step to changing it. A financial therapist might help since they understand both money and psychology. They can suggest healthier ways to deal with emotions instead of impulse buying.

Learning about your relationship with money is part of the process. This means figuring out what triggers your spending. The Financial Therapy Association has a free directory to find qualified help. Credit counselors are a more affordable option—try the National Foundation for Credit Counseling or the Financial Counseling Association of America.

3. Make Emotional Spending Harder

Simple steps help, like taking credit cards out of your wallet, including store cards. You could also delete saved cards from online shopping sites. Other helpful barriers:

• Shop with cash only—when it's gone, it's gone

• Name your bank accounts—"House Fund" or "Vacation Savings" makes you think twice before dipping in

• Wait 24 hours before making unplanned purchases

• Find other ways to handle emotions—take a walk, call a friend, or try a quick meditation

4. Remove Temptation

Out of sight, out of mind works. Cut out reminders that make you want to spend:

• Unsubscribe from store emails and texts

• Unfollow stores on social media

• Delete shopping apps

• Say no to store credit card offers

• Avoid shops and websites when you're emotional

5. Treat Yourself (Within Reason)

Saying you'll never splurge again isn't realistic or healthy. You should enjoy some of your money without guilt. The trick is moderation:

• Include fun money in your budget—plan for some non-essential spending

• Use a bit of windfalls for treats—set aside a small portion of tax refunds or bonuses

• Start a side gig for splurge money—keep this cash separate for occasional treats

These strategies let you enjoy spending without wrecking your finances. Just be sure to set limits you can afford.

Emotional spending, compulsive buying, or impulse buying?

When emotional spending gets out of control, relying on "retail therapy" can lead to debt and money troubles. With online shopping just a click away, this problem is growing, especially among young people and women. About 1 in 20 people have what experts call Compulsive Buying Disorder.

Having a mood disorder, personality issue, substance problem, or ADHD can make impulse buying worse. Most of us have splurged on something we really wanted on payday. But people with mental health challenges might spend more than they can actually afford. This can mean not having enough money for bills, rent, or even healthy food.

If someone's at risk of losing their home or can't pay their bills, it's smart to talk to both a mental health professional and a money expert. They can help figure out why the spending is happening, develop better spending habits, and create a budget that works.

Taking control of your money and emotions

We all shop to feel better sometimes. It's normal. But when your feelings regularly drive your spending, your wallet takes a hit.

The good news? You can break this cycle. Start with a simple budget that works for you. Track your spending, wait before buying big items, and find new ways to handle stress or sadness that don't involve shopping.

Make impulse buys harder by keeping credit cards out of reach, using cash, or giving yourself a 24-hour cooling-off period. Cut down on shopping temptations by unsubscribing from store emails and deleting shopping apps.

Remember, you don't need to be perfect. Plan for some fun spending in your budget—just keep it reasonable. If emotional spending is seriously hurting your finances or mental health, don't struggle alone. Talk to a financial counselor or therapist who understands both money and emotions.

Small changes in how you shop and handle feelings can make a big difference in your financial health. And that's something worth feeling good about.