MONEY TRIGGERS; WHERE EXACTLY DOES YOUR MONEY GO?
Money triggers are the emotions that prompt us to give in to spending our money. Emotions can lead people into justifying the need to reward themselves. The temptation to eat out after good news comes from the joy of achievement justifying the need to celebrate achievement. Situational money triggers such as jealousy, guilt, fear, and sadness also have an effect on our spending.
People often buy things they do not need because of this.
Money triggers can also come from people close to us. Our friends, associates, and family can make us spend money unexpectedly.
The best way to do away with emotional spending is knowing your money triggers well.
How do emotions trigger your spending?
Using Steve Down’s analogy of spending; the wealth compass conceptualizes human spending habits. According to Mr Down, there are two types of spending.
- Logical spending.
- Emotional spending.
The West point of the Wealth compass represents emotional spending. West spending is driven by impulsiveness. Often, the consumerism culture encourages consistent purchases of goods and services. With quotes such as “Shop until you drop”, we are swayed to believe that shopping is therapeutic. That if you shop more, you relax.
Click here to read more on the wealth compass.
Emotions are used by businesses to lure consumers into more spending. Marketers know that by emotionalizing spending, it becomes more acceptable.
On social platforms like Instagram, it is easier to splurge your money on popular brands. For example, most I-phone users seem to have bought i-phones because of the brand’s perceived status (luxury), yet few know the distinct features from other smartphones.
Consumers like to identify themselves with brands such as Apple, Gucci, Louis Vuitton for their prestige and authenticity. It feeds to their emotional need for attention (social acknowledgement and validation), volition (they feel they can afford their preferences) or sense of achievement or belonging (status/current trend).
If you find yourself buying goods because someone else owns them, chances are you are giving into emotional spending.
Consumer products utilize aspects of status symbolism. They know that consumers emotionally spend to fit into different social groups with valued status.
Therefore, it is important to ask yourself before giving into money triggers if the purchase you are about to make is necessary?
What to consider before giving into money-triggers?
Before making any unnecessary purchases;
1. Give it 24 hours.
Our cravings can easily drive us into unplanned spending. There is no problem with treating and rewarding yourself, as a matter of fact, wealth coaches highly encourage this. What is wrong, is giving emotions the power to control your finances. This will dent your wallet.
Tip: After 24 hours if you still want to make the same purchase, budget for it then buy it.
2. Learn to say no
A disciplined person has the courage to say no. To relatives, themselves, friends and to emotional spending.
Be focused on the end goal that saying no does not sound like a struggle.
3. Ensure your needs are catered for before giving in to your money triggers.
Read a story online recently about millennials falling into the consumerism culture to fit in. Apparently, a girl spent Kshs.50000 on her birthday to entertain friends yet in her house, she has no electronics.
Most of our financial priorities are misaligned.
Before splurging money to keep up with trends or to satisfy your emotions, ensure all your needs are catered for.
4. Reevaluate your relationship with money.
We can shift the blame to emotions, friends, or family but the real problem is your relationship with money. If you struggle with budgeting and saving you will give into your money triggers.
What you need to do is to work on changing the way you think, feel and act about money.
5. Enroll in Financial literacy classes.
To be able to change how you feel, think, and act about money; learn Financial literacy.
Financially Fit Africa offers an online-based financial program. The curriculum is online and self-paced. You can learn at your convenience.
