Published
November 12, 2024

Finance and your emotions

Ever feel like your emotions are running your finances? A bad day turns into an online shopping spree, or stress over bills makes you want to ignore your budget entirely. So, how do you handle your emotions when it comes to finances?

Managing money isn’t just about numbers; it’s also about understanding how emotions can drive your spending and saving habits. Here are three ways to build a healthier relationship between your emotions and your money:

ONE - Recognize emotional spending. We all have times when emotions influence our spending. Maybe stress, boredom, or even excitement leads to a shopping spree. The key is to recognize when emotions are affecting your spending and find ways to handle them without throwing money at them. For example, if you’re stressed, try going for a walk or talking to a friend instead of shopping online. Learning to spot these emotional triggers can help you avoid unnecessary spending.

TWO - Make a financial plan AND stick to it! A financial plan is like a roadmap for your money. It keeps you focused even when emotions are high. Whether you’re feeling anxious about bills or tempted to splurge, a budget reminds you of your goals. If you have a clear plan, it’s easier to stay on track and make decisions that support your future, not just how you feel in the moment.

THREE - Be patient with yourself. Stressing over money can feel overwhelming, but remember that everyone makes mistakes. If you overspend or fall behind, don’t beat yourself up. Instead, focus on learning from it and getting back on track. Every small improvement counts. You can still make progress even if you have a setback.

Financial decisions are often fueled by emotion, but by learning to recognize and manage these feelings, you can make choices that support you on your financial journey.

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