Willpower is key to saving money and staying out of debt, but we aren’t all machines. There will be times when emotions get the better of us and we just need to spend some money.
We call that emotional spending and that’s what today’s post is all about.
I’ll discuss what emotional spending is, how to identify it and how to manage it.
There’s no magic bullet here as we’re all susceptible to it, but knowledge is power!
What is emotional spending?
Emotional spending is when you buy something for purely emotional reasons.
You don’t need it. You may not even really want it. But you’re reacting to an emotion, sadness, stress, boredom, excitement, and feel compelled to buy.
There’s nothing wrong with treating yourself if you can afford it and will use what you buy.
The problem comes when:
Items end up unused in cupboards or with the tags still on or you can’t afford it, and it pushes you into debt.
Why emotional spending matters
Emotional spending isn’t new, but it’s growing.
Recent data shows Brits spend over £41 billion annually on mood-driven impulse shopping, with 88% of UK adults making at least one impulse purchase in July 2024. Younger shoppers in particular drive this trend.
With the cost of living still high, impulse buying risks undermining savings and building avoidable debt.
The problem with emotion
Emotions get in the way of rational decisions. Willpower can vanish in the moment, and the “dopamine hit” of a purchase feels rewarding.
But the regret that follows can be financially damaging.
The goal isn’t to suppress emotion. It’s to recognise it and manage it before it affects your finances.
How to manage emotional spending
Notice I say ‘manage’ emotional spending, not ‘stop’ emotional spending.
It’s near impossible to stop emotional reactions to things. It’s one of our Achilles heels.
Instead, what we can do is:
- Recognise emotional spending
- Redirect the emotion
- Use the 24/48 rule
Recognise emotional spending
The first step to self improvement is to acknowledge there are areas that require it. That’s the case here.
If you’re the type to head to the high street or the Boden website when you have had a bad day, recognising it is your first step.
Once you see what you’re doing, you’re immediately aware of it. It’s one of those things you cannot unsee, which is good.
Good in that you have identified a habit. Once you have identified an unwanted habit, it becomes easier to do something about it.
In this case, once you see yourself heading towards the high street or surfing the internet you can redirect that emotion elsewhere.
Redirect the emotion
I’m not going to pretend recognising and redirecting emotion is easy, because it isn’t.
However, to manage money better and potentially avoid getting into debt, it’s essential.
If you can recognise emotional spending, it is possible to redirect that emotion towards something else. It’s better than trying to supress that emotion that’s for sure!
Redirecting emotion just means rather than doing one thing, you do another.
The key is to find something positive to redirect it to.
For example, if you’re into exercise, go to the gym or for a run instead of to the high street. If you have a dog, take it for a walk and have a play. If you’re a reader, select a favourite book and sit back in your armchair and lose yourself for a while.
The key is to find something you like and take pleasure in.
That’s going to be different for everyone.
If you don’t have hobbies, go for a walk. Some fresh air and a change of scenery can help most people feel better.
Seasonal triggers for emotional spending
Impulse buying often spikes during key times:
- Christmas and Black Friday: stress + deals = overspending
- Summer holidays: research shows 36 million Brits overspent last summer on impulse buys
- Birthdays and celebrations: “reward yourself” culture makes splurges feel justified
Recognising these high-risk times helps you prepare in advance.
When emotional spending becomes something more
Occasional treats are fine. But if emotional spending becomes compulsive, leading to debt, distress, or guilt, it may be a sign of Compulsive Buying Disorder (CBD).
CBD is a recognised condition where shopping becomes a coping mechanism.
If you feel out of control, consider seeking support through:
- Mind
- NHS talking therapies (such as CBT)
- Supportive budgeting apps or accountability partners
Tools and challenges that can help
- No-spend or low-spend challenges: Commit to cutting non-essential spending for a set period.
- Spending journals: Write down what you want to buy and why. Often the urge passes once written down.
- Separate “spending account”: Use a prepaid card or separate bank account for non-essentials.
Use the 24/48 rule
The 24/48 rule can be used as part of these other tips to help manage emotional spending.
It’s a method I recommend a lot with people who have trouble with spending and with impulse buys.
The rule is simple to say but harder to implement.
When you find yourself heading towards the high street or online to buy something, make yourself wait 24 or 48 hours before you buy.
This gives you time to assess whether you need what you’re planning to buy and time for the emotion to pass.
This ‘rule’ is useful for all kinds of spending and great if you want to save money and avoid wasting it.
Tackling emotional spending
Anyone can be susceptible to emotional spending at one point or another. If you can afford it, there’s nothing wrong with treating yourself.
The challenge comes when you cannot afford it. When emotional spending gets you into debt and threatens to eat up savings.
It’s one of those things that’s easier to say than to do and I fully recognise that. However, it’s also one of those things we all have to do to stay on top of our finances.
Emotional spending FAQs
1. Why do so many people in the UK shop on impulse?
It’s a mix of emotional triggers and marketing. Instant gratification feels good, and retailers design apps and emails to nudge quick purchases. Research shows emotional spending reached £41bn annually in the UK, especially among Gen Z and millennials.
2. How effective is the 24/48 rule?
Very effective. Waiting even 24 hours reduces the “emotional high” that drives impulse buying. Most people find that the urge fades, or they realise they don’t actually want the item.
3. What’s a ‘fun money’ budget and why does it help?
A “fun money” allowance sets aside a small amount (e.g. £30–£50 per month) for guilt-free spending. It gives you flexibility while protecting your savings and preventing uncontrolled splurges.
4. When is emotional spending a sign of a deeper issue?
If it repeatedly causes debt, distress, or guilt, or if you feel unable to stop, it may indicate Compulsive Buying Disorder. This often requires professional help, like CBT or support groups.
5. What tools can I use to control emotional spending?
- Spending journals to track urges
- Budgeting apps with alerts (like Monzo or Starling)
- Unsubscribing from promo emails
- Removing shopping apps
- Talking to a trusted friend for accountability
