8 Emotional Triggers That Cause People To Spend

by Gary Foreman

Emotional Triggers That Cause People to Spend photo

Often, spending is triggered by an emotion. Here are a few tools to help you understand the emotions that could be driving you to spend and how to control that urge to splurge.

Dear Dollar Stretcher,
This probably sounds stupid, but I just don’t know where my money goes. I make a reasonable salary and I don’t think that I do a lot of shopping (ok, I do buy too many shoes!). So where does the money go? I’ve tried keeping track of all my expenses for a month, but nothing seems wrong with what I’m doing. Can you help?
M.

Good question! Sometimes, it’s really hard to understand your finances. First, you collect a bunch of information, then find you don’t know what to do with it.

Often, a struggle like yours is not caused by the data itself but by a lack of understanding on an emotional level.

Any attempt to understand your spending patterns requires a bit of introspection. Part of that is understanding why you do what you do. One way to do that is to consider what motivates you to make each purchase.

This will require going through the expenses you tracked. Consider each purchase. Then, use the list below to see if any of these seem to ring true.

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1. Protecting Your Image

Perhaps you care what others think of you and make purchases so that others can see that you own those things. Designer clothes, expensive watches, and McMansions are good examples.

2. Spending Up to Your Income Level

You may find that you spend money just because you can. A raise or unexpected income could be the trigger. It’s not about what you buy, but the fact that you always spend money as soon as it’s available.

3. The Emotional High of Spending

Maybe you get an emotional kick out of spending. You buy because “it feels right” and then question the purchase when you come down from your high.

4. The Need To Feel Powerful

Being able to make decisions and back them up demonstrates power. That can feel good, especially when others react and acknowledge your power. If you’re buying to demonstrate your power, you’ll tend to buy “high-end” products and services, looking to get something better than the typical consumer.

5. The Need for Immediate Gratification

We live in a “now” world with instant internet, instant food, and instant credit. When you see something that promises to satisfy one of your needs, you want it now. When all purchases were made with cash, scratching this itch was harder. Credit cards have made it much easier to purchase instant gratification.

6. The Desire To Protect Your Standard of Living

Unless you’re intentionally trying to simplify your life, you’ll assume that any expenses incurred protecting that lifestyle are necessary, but changes in income, age and family status may suggest a different, more modest standard of living. Purchases made just “because I’ve always done that” are a telltale sign.

7. The Need To Overcome Past Problems

If you’ve been materially deprived earlier in your life, it’s natural to want to avoid repeating those times. You might get a candy bar every work break to make up for the ones you didn’t have as a child. Or you might only buy new cars because your parents could only afford old beaters.

8. To Convince Yourself of Self-Worth

Some people need to spend money on themselves in an effort to bolster their self-esteem. Often, these are items that are self-centered, like manicures, fancy jewelry, and personal convenience or care items. One way to identify these purchases is that they’re often justified by an “I deserved it” claim.

Reviewing your past monthly purchases, you’ll notice any patterns. The purchases may only be the symptom, with the underlying psychology being the cause. Unless you deal with the root cause, it’s unlikely that you’ll ever control your spending.

Don’t be afraid to confront those causes. Often, once you know they exist, it’s easy to overcome them. In any case, it’s a battle that’s worth fighting.

About the Author

Gary Foreman is the former owner and editor of The Dollar Stretcher. He's the author of How to Conquer Debt No Matter How Much You Have and has been featured in MSN Money, Yahoo Finance, Fox Business, The Nightly Business Report, US News Money, Credit.com and CreditCards.com.