As the world around us becomes dominated by advertising and marketing, compulsive shopping is becoming ever more prevalent.
There’s always things we ‘need’ to shop for. However, when we find ourselves making unnecessary purchases, especially ones that we can’t afford, then it becomes a problem. At this point, it’s crucial to analyse and understand how it’s affecting your financial plans.
Compulsive shopping and hoarding can not only affect your emotional well-being but significantly affect your financial health and future. At Salad Money, we understand how difficult it can be to manage compulsive spending habits, especially when they affect your health.
That’s why we bring you this article discussing what compulsive shopping is, its top signs and how it impacts your financial plans.
What’s more, we’ll also take a look at some strategies on how to stop compulsive spending and build a sustainable financial future.
That all said, if you’re worried you may have a compulsive shopping problem, it may be worth seeking professional advice.
What is Compulsive Shopping?
Compulsive shopping is when we find ourselves unable to control the urge to buy things we don’t really need and, often, can’t really afford. Whilst it’s absolutely fine to spend your money as you see fit, this can become especially detrimental when done without considering the financial consequences.
Although millions of people are struggling to make ends meet, many people find themselves in a cycle of overspending and compulsive shopping. Given how easy it is to buy anything with credit cards, compulsive shopping can lead us into ever greater credit card debt.
That’s why it’s so important to identify signs of compulsive shopping early and get it under control.
Identifying the Signs of Compulsive Shopping
Compulsive shopping is generally driven by a need for instant gratification, the habit of chasing quick and easy pleasure. While this may feel great temporarily, it can have major negative effects on your financial health.
By identifying some signs of compulsive shopping, you can actively avoid it and make the most of your finances.
Some of the top signs that you’re compulsively shopping include:
- Going over your monthly budget regularly
- Having many unused or unopened items
- Experiencing regret after a purchase
- Shopping to deal with emotional stress
By understanding and addressing these signs, you can take your first step towards stopping shopping compulsively and managing your finances better.
Understanding the Financial Consequences
The instant gratification that comes with compulsive shopping often doesn’t last very long, leaving behind a feeling of regret and financial stress.
However, the problem arises when this feeling of regret doesn’t stop you from making your next non-essential, unaffordable purchase. This slowly leads to a cycle of overspending and compounding financial decisions.
Furthermore, it not only affects your ability to save for your future, but can also lead into a cycle of debt, meaning that you have less money for your long term goals, whether than be homeownership or retirement.
As a result, all of these things together can lead you towards a life of financial stress, economic uncertainty and a cycle of debt.
Strategies to Combat Compulsive Shopping
As previously mentioned, if you are struggling from a serious case of compulsive shopping - you should seek out professional services designed to help. However, if you’re looking for some light advice with your compulsive shopping or find yourself slowly falling into it, it’s time to put a stop to it.
Fortunately, with a few strategies, you can improve your financial management and steer clear of compulsive spending habits.
Be Strict With Your Financial Goals: This step will give you direction and purpose to save your money and prevent you from spending it unnecessarily. These goals can be anything from setting up an emergency fund to repaying your debt, or even more fun goals like getting a new car or a house deposit.
Create and Stick to a Budget: Creating a budget is one of the most beneficial steps you can take to reduce overspending. Not only will it help you allocate more funds to your savings, but will also limit the room for compulsive spending.
Identify Triggers and Alternatives: Recognising what triggers you to shop compulsively will help you actively avoid it. Moreover, once you’ve spotted these triggers, you can find healthier alternatives, whether that be exercising or an engaging hobby.
Use Cash Instead of Credit: Credit cards make it very easy to purchase things. However, these purchases often manifest as regret once you receive your credit card bill. To avoid this, make it a point to only use cash. This will always prevent you from spending more than you can afford and save you from hefty credit card bills.
Choose Salad Money for Fair and Affordable Personal Loans
Compulsive shopping and hoarding can have a significant impact on your financial plans. However, as we’ve seen, with the right strategies and financial discipline, overcoming these habits is not impossible. Still, if you are struggling to beat your compulsive spending habit, there are professional services designed to help.
At Salad Money, we are dedicated to helping you regain control of your financial life. However, with years of experience in the world of online lending, we realise that life is not always the same for everyone.
That’s why, if you ever find yourself in need of financial support, rest assured that we have you covered. Designed to offer you the assistance you need when you need it, our ‘More Than Your Score’ loans provide you with emergency money regardless of your credit score.
With a unique affordability assessment system, we offer personal loans to working professionals who struggle to get loans from traditional lenders.
What’s more, we are an FCA-authorised and regulated lender, so you know that you can rely on us.
Click here to find out more about our fair and affordable personal loans.
