Tori Dunlap’s 3 Tips to Stop Emotional Spending – The Motley Fool | Vette Leader

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You can stop emotional spending by asking yourself a few questions before you buy anything.

Important points

  • If you want to spend money on things you enjoy, that’s fine.
  • It’s a bad idea to let your emotions cloud your judgment and keep you from achieving your personal financial goals.
  • Here are Tori Dunlap’s three questions to ask yourself before you buy.

Many people fall prey to emotional spending. You can spend money to get temporary relief from a problem or to feel happier during a stressful time. But emotional spending is unlikely to solve your problems.

Emotional issues can also become a problem. Spending more money than you can afford or more money than you want to spend on a regular basis can be a problem. If you do this, there may be negative financial consequences such as: B. Accumulating credit card debt.

But if you practice mindfulness and evaluate potential purchases before you buy, you can spend your money on things that matter and stop exceeding your means or budget.

Spend your money, but be careful what you spend it on

Tori Dunlap, a personal finance guru and social media influencer who helps women educate themselves on important financial matters, shares tips and tricks on her podcast, The financial feminist.

In episode 25, she gives advice on how to stop emotional spending. She makes a point of telling listeners that they shouldn’t stop spending because money should be spent and enjoyed.

She goes on to remind listeners that they should work hard for their money and spend their money on things they love — not things that are meaningless to them.

Do you spend money without thinking much about it? If yes, you are not alone. It’s something a lot of us do.

Tori recommends asking yourself the following three questions before making a purchase:

Question 1: What is my current headspace or emotional state?

Before you pull out your wallet, be mindful and consider your feelings. It’s easy to release our emotions when we’re sad, angry, stressed, or happy.

If you’re buying things to try and change your mood or want to prolong your current mood by buying something, it’s probably not a good idea.

When you allow your emotions to take over, it can be easier to be carefree with your money. Before you buy anything, examine your feelings and current emotional state to make sure you aren’t letting your emotions cloud your thinking.

Question 2: How many “taco dollars” does it cost?

In the podcast episode, Tori talks about an article she read in which an author discussed how they assess potential purchases in relation to “taco dollars.”

The writer loves tacos. When evaluating whether or not to buy something, they would consider how many tacos they could buy for the same amount of money.

We all have different taco dollars. Tori suggests figuring out your taco dollars (travel dollars, plant dollars, skincare dollars, etc.) and then calculating how many taco dollars the purchase will cost you before you buy.

This will help you find out if it’s worth buying. Would you like to buy this item or save the money for something you know you will enjoy and is worth the money spent?

Question 3: Am I accurately assessing the value of this purchase?

Tori points out that it’s important to evaluate the value of a purchase before making a purchase. Something valuable to one person may not be rewarding to another.

Here are some questions to ask yourself to determine if it’s worth buying:

  • Is the quality worth the price?
  • Is this purchase valuable to me?
  • Is it worth the money?

For example, if an item is on sale, you don’t feel like you have to buy it because it’s on sale.

If it is important to you and you wanted to buy it, it is worth having on sale because it will bring you joy and you can get a lot. But buying something just because it’s on sale isn’t a good idea.

Don’t be afraid to spend money. But think about your emotions, whether you enjoy it and whether it is worth buying to you before you buy anything.

By taking a moment to be mindful, you can ensure that you are making financial decisions that align with your goals, values, and interests.

Check out these personal finance resources if you’re looking for additional tips to help you spend smarter.

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