The psychology of spending

If you’re regularly spending more than you can afford, it might help to think about why. Is it because you’re…

• Seeking gratification? You enjoy purchasing items, having new things, awaiting those parcels from Amazon or ASOS…
• Bored? Feeling like you’re achieving something by making a decision on an item can give you that “I took care of that today” feeling.
• Feeling peer pressure? This is something people often associate with teenagers, but actually as you get older, your peer group’s financial circumstances can rapidly change based on their different careers and circumstances. This can often lead to spending beyond your means or committing to things you cannot really afford but don’t want to miss out on. This could be splurging on a night out, attending a destination wedding or getting the gadget all your friends rave about.

Thinking about the cause of your overspending can help you build the healthy habits you need to get your spending under control.

That might mean:

• Deleting shopping apps and blocking websites – or at least removing your stored card details from them. Go through your phone and delate those all-too-tempting shopping apps now. If you get email newsletters from your favourite stoes encouraging you to spend – then it’s time to unsubscribe.
• Calculating how much you would have to work to buy a product. Is it worth it?
• Finding another outlet. Spending money to improve your mood isn’t a long-term solution for you – if it was, you wouldn’t be taking part in this bootcamp! Try a few other activities – exercising, cooking, chatting to a friend, maybe snuggling a pet – to see what gives you that much-needed serotonin boost.

You’ll find more details and tips in our ‘how to stop impulse buying‘ blog.

Is it possible that your overspending has risen to the level of compulsive spending? Watch this video on the Mind website for an example. If it strikes a chord, read this guide from Barclays about how to get help.