Overspending often begins subtly, with small purchases that eventually spiral into a cycle of stress and financial strain. As financial educator Eduek Brooks explains, “when we are stressed, our body craves a form of release,” which can make shopping feel like an easy coping mechanism. While it may initially satisfy, chronic overspending often leads to guilt, anxiety, and even depression.
What is overspending?
Overspending occurs when you spend more than you can afford or exceed your planned budget. This behaviour may stem from controllable factors like poor cash flow management or uncontrollable ones, such as inflation or high-interest rates.
Chronic overspending, however, is often linked to emotional triggers, such as shopping to self-soothe or impulsively buying items you don’t need.
Signs of chronic overspending
- Feeling restless or exhilarated while shopping
- Guilt or disappointment after a purchase
- Hiding purchased items or facing relationship strain due to spending habits
- Ignoring adverse financial consequences
How mental health affects overspending
Overspending is often intertwined with mental health challenges. Anxiety, depression, or impulse control disorders, namely Attention Deficit Hyperactivity Disorder (ADHD) or bipolar mania, can trigger spending sprees.
Low self-esteem and societal pressures, amplified by marketing techniques that create a sense of scarcity also fuel impulsive purchases. Trauma or early financial experiences may further shape one’s relationship with money.
Breaking the cycle: Tips to address overspending
To regain control over your finances, it’s essential to address the root causes of overspending.
- Study your spending habits
Begin by assessing your recent purchases and the emotions tied to them. Understanding your spending patterns and how they align with your values can provide clarity and help you make more intentional decisions.
- Recognise your triggers
Pay attention to emotional cues or situations that prompt you to overspend. Financial coach Parween Mander advises developing rules such as waiting 24 hours before making significant purchases or avoiding shopping during vulnerable moments.
- Create a personalised budget
Go beyond fixed and variable expenses by including systems to manage impulsive spending. For example, set up a separate account labelled ‘mental health’ for guilt-free purchases or remove credit cards from online shopping platforms.
- Find healthy alternatives
Replace retail therapy with activities that release dopamine such as exercising, laughing, or listening to music. When you feel the urge to shop, consider step-down purchases – affordable items that bring joy without harming your financial health.
- Seek professional support
Consider consulting with trauma-informed professionals such as financial therapists or credit counsellors who understand the link between mental health and money. These experts can provide empathetic, practical solutions tailored to your needs.
By recognising the emotional and mental health factors influencing your financial decisions, you can build healthier habits and regain control. With these tools and strategies, managing your finances and mental health will become more achievable, transforming shopping from a stressor into a balanced and intentional activity.