#BadassBudgeting Tip of the Day: Manage Stress

Emotional spending is spending money during a period of heightened emotions, like stress or sadness. It often results in buying items you don't really need, or even want. Mental health experts say this is a coping mechanism to avoid addressing those difficult emotions, but there are many ways to deal with it (Very Well Mind, 2022).

Sitting down and analyzing our spending and reasons for spending can help to combat emotional and especially, stress spending. Reflecting on our spending habits can shed light on why we are spending, especially if we are overspending in our various budget categories.

Stress can do all sorts of things, such as cause us to spend more. It can cause us to emotionally spend on items we don't need. When you're stressed, spending money on something (no matter what it is) provides some sort of relief. The act of purchasing something boosts your mood and gives you comfort. Hence the phrase “retail therapy.” (How to Avoid Stress Spending, CNBC). This is why it's critical to keep stress at bay and manage the stresses that we do have in our day-to-day lives.

When I am experiencing more stress than usual, budgeting is the last thing on my mind, that's why it helps to have my KOHO Card where I put all of my "fun money" to spend on things that I please. This allocation of money gives me a specific amount that I can spend in 2 weeks before I get paid next and really helps to keep me within budget. Try it out, it may work for you too! Signed, Filipina Budget Girl.