Overcoming overspending - understanding how to stop this habit
We have all had to face decision paralysis - being stood in the middle of a shop, trying to decide whether to actually buy an item or not.
Angel and devil on the shoulders… one saying DO IT the other being like WTF, why are you even considering it?
Today, we're going to tackle an issue that most of us struggle with – overspending.
It's a common problem that often leads to an unpleasant financial situation. So, let's delve into its depths, understand its roots, and learn some tips to curb it effectively.
What is Overspending?
Overspending primarily means living beyond your means. It's tempting to spend on things you want even though they often exceed your budget. Unfortunately, this lifestyle can lead to unmanageable and overwhelming money situations. Acknowledging that you're caught in a cycle of overspending is the first step to financial freedom.
The Downfall Of Overspending
When you overspend, not only are you more likely to end up in debt, but it also becomes challenging to stick to a budget and manage your finances effectively. This lifestyle comes at the expense of crucial financial aspects - savings and investments, thereby mitigating our financial progress.
Persistent Marketing: Fuel to Overspending
In today's digital age, advertisements and promotions constantly bombard us, making it harder to resist the urge to spend. Money might be an infinite resource, but we need to use what we have intelligently and reasonably.
This is where practicing gratitude for what you ALREADY have is so important.. Do you *actually* need another cream jumper? Or the latest, most shiny new gadget to wax your legs?
Combating The 'Marketing Machine'
Brands spend millions on marketing, employing experienced professionals to pinpoint our insecurities and sell us solutions in the form of products or services.
We're up against strong forces that are doing their job to make us spend. It's up to us to resist the bait and keep our spending in check.
It is not about ignoring the marketing messages or NEVER buying anything again of course.
It is about being aware of the fact this is even happening.
Hormone Release in our brain
Did you know when you spend money there is a series of chemical releases going on in the brain (without us even realising?!)
Dopamine. Endorphins. Serotonin. Adrenaline.
Dopamine is the happy hormone.
It is released in the brain when there is anticipation or excitement about something, so everytime you spend money (click a button, tap your card) you get a release of this chemical.
When you shop online, these feelings are heightened even more because the anticipation of the item turning up is greater.
This chemical creates a reward-seeking loop whereby you are craving that dopamine-high and are seeking out the same rewards therefore you repeat the same behaviours.
This is why bad habits can feel so good, like junk food or smoking. You are anticipating the reward, you get it, the process repeats itself.
Dopamine itself doesn't last very long and it can lead to compulsive shopping because you're constantly seeking out that next high of dopamine.
And the instant reward and motivation to re-experience the rush starts to outweigh your self control and practical financial considerations. So essentially, you seeking that dopamine high outweighs the need to be good with your money.
Endorphins - known to be a natural pain reliever.
Apparently this is why they call it ‘runners high’ because endorphins are released when you run and it stops you experiencing pain and you just feel high instead!
Serotonin is in charge of your wellbeing and mood regulation.
Our decisions about money are made from a place of emotion, not logic, so serotonin plays a huge part in this.
Your decision making skills are improved with increased serotonin in levels.
This chemical helps you weigh up the possible effects of negative consequences.
Whereas if you have slightly less serotonin in your body, you might find risky decisions more appealing.
Let's say you were going out and you had a budget on how much you could spend. If you had high levels of serotonin, it'd probably be easier to stick to the budget, because you're able to assess risk and decide what's going to happen if you do go over budget.
Now, if you have lower serotonin levels, you're probably more likely to be impulsive, to make purchases of a higher, like, level more expensive, go out of budget and think less about the financial consequences.
Adrenaline is a surge of energy and increased heart rate.
People have reported this feeling when shopping in the sale or buying luxury items. So in some instances adrenaline can be released when spending money.
How to stop overspending?
01: Become aware of what you are overspending on.
Is it food, is it clothes, is it random shit that you don't even remember. All of this is data and will help you build up a picture of what is going on
02: What is your emotional overspending trigger?
Is it sadness, boredom, loneliness? When you know your emotional triggers for overspending, you can start to create a tool kit that helps change your mood without needing to spend money.
03: Ask yourself - where am I getting my dopamine and serotonin and endorphins from?
When you proactively choose activities that increase these levels, you no longer rely on spending to make you feel better.
To get dopamine, you can cross things off your to do list or listen to music or try something new.
To get endorphins, you can exercise, laugh loads or have sex (hello to all of these)
To increase your serotonin, you can get out in the sun for your Vitamin D, meditate and eat healthy
Hope this helps and remember, whilst it's not your fault there are chemical releases happening in your brain around spending, it is YOUR responsibility to learn how to manage them!
