Page 16 - TODAY magazine Issue 1 2021

My money personality is that of a spender and a saver. When things are going well, I am wise and frugal with my money, but when
I am frustrated, I tend to spend to make myself feel better. Because I know that frustration is my trigger
to spend, I try to find other ways to get rid of it instead of spending. Although it feels good at the time I’m making the purchase, I know it will ultimately leave me even more frustrated because I’ve spent money I did not budget for, which prompts me to shop more. As you can see, emotional spending,
if left unchecked, can create a vicious circle. Now, don’t get me wrong, you can and should
buy yourself nice things from time to time, especially when you’ve planned for it and are in control
of your finances. Often I’ll hear someone say,
‘I deserve to spoil myself.’ My answer to that is, ‘Yes, you do. But do you deserve the stress that might come with having made the purchase?’
SO, HOW CAN YOU STOP YOURSELF
FROM EMOTIONAL BUYING?
Budget for it
A good budget takes into consideration miscellaneous spending. If you do, it will hopefully give you room
to still feel like you are enjoying your money. If you don’t budget for ‘unplanned’ spending, you will forever wonder how it is possible that you cannot stick to a budget and why it’s impossible to get through the month on the money you have.
This is why many people believe that budgeting does not work – they do not include wants in
their budget, in addition to needs. Not doing it is counterintuitive – we are all human beings with wants. You just need to budget for them.
That is why I love the 50/30/20 way of budgeting: 50% goes towards your needs, 30% goes towards your wants, and 20% goes towards your savings and investments.
Leave all your cards at home when you go window-shopping
I have yet to meet someone who goes window- shopping and does not come back with a couple of items they had not planned to buy. The best way to avoid the temptation would be not to go window- shopping, but I understand that it’s an activity that
‘We are all human beings with wants. You just need to budget for them.’
NEED TO SPEAK TO
A FINANCIAL ADVISER?
To find an adviser in your area, call Old Mutual on 0860 60 60 60 or click here.
// 14 // ISSUE ONE 2021