The Compulsive Spender

Signs you might be a Compulsive Spender:

• When you are stressed, you have a tendency to overspend. As a result, you make unnecessary purchases only to regret them later.
• You frequently spend without planning ahead of time.
• You have an outgoing personality and enjoy treating people to something special for no apparent reason.
• When you're in emotional pain, your only option is to spend, especially if you want instant gratification.
• Spending money is regarded as a form of self-expression. You enjoy purchasing luxury brands, purchasing the latest and greatest smartphone even if your old one is still in good working order, or treating your friends to something special for no apparent reason.

Pitfalls:

Dopamine, also known as the "happy hormone," is produced in high amounts by compulsive spenders. Even when you are in debt, you frequently have a tendency to overspend, which raises your risk of declaring bankruptcy or accruing credit card debt. They might even try to keep expensive purchases from their loved ones and friends. Additionally, you find it difficult to resist the urge to indulge when you are under the influence of emotion or during a sale.

Money advice:

Create a monthly budget to develop sound money management. You should choose to pay with cash rather than a credit card if you want to increase your level of financial consciousness, which involves being aware of how much you spend and where your money is going. Remind yourself that investing in a new car (when you already own one) entails forgoing funds for important goals like debt repayment or retirement savings. In addition, you should avoid engaging in uncontrollable spending by finding other ways to relieve a bad mood rather than turning to retail therapy.