TAKE THE EMOTION OUT OF SPENDING

During the economic boom of the past 10 to 15 years I’ve watch many people make large amounts of money only to see it run through their fingers like water out of a sieve. Making money is only half the equitation, being able to save a portion of it is the other. I’m not advocating living like a miser, hoarding all your money and living on bread and water. That’s the other extreme, but finding a balance between the two.

Up until 1923 most people bought things for practical reasons like food, clothes, shelter etc. the basic human needs. All that was about to change when the major retailers of the time hired Edward Bernays, the nephew of Sigmund Freud, to help boost their sales in the stagnant economy of post-WW1. He taught their marketing teams to link the purchase of goods and services to peoples ego needs, such as sex, status, prestige, and a sense of themselves as prosperous and successful. Thus, not only was modern advertising born, but also the curse of emotional spending.

This not only fuelled the boom of the 20’s but also the great depression of the 30’s. In modern times the techniques employed by modern advertisers are far more advanced and far more subtle. It has almost become the “art of selling without selling”, it has become so subliminal. Every time we turn on the TV or open a glossy magazine we are being subtly programmed to spend. Many of us have cupboards (or even whole rooms) full of “stuff” we have purchased, used for a week or two, and then put it into storage never to see the light of day again, until it’s thrown out, given to charity or sold for a fraction of it’s original cost. We don’t stand a chance in the face of all these sophisticated marketing champagnes telling us how perfect our lives will be if only we had this or that product.

However there is an antidote. Learning how your mind really works is like a kind of “consumer protection for the brain”. Emotional spending is an addiction. As with overcoming any addiction it involves reprogramming ourselves, changing our associations, our biochemistry and ultimately our actions. There are two main things you need to do: 1. Change your old associations; 2. Redesign your priorities

Think of all the things that make you feel good that money can’t buy. Some of the free things that make me happy are, being with friends and family, sunshine, listening to my favourite music, looking at a child happily playing and laughing…. Make your own list. The next time you are tempted to buy something non-essential to make yourself feel better, look at your list and do one of the things on it instead. With practice you will break the association between spending and feeling good.

Next get into the habit of categorising everything you buy into one of three categories as follows:

1. Essential; B. Important but not Essential; and C. everything else.

Every time you buy something, ask yourself what category it falls into, if it is not A or B then ask yourself why you are buying it. If it just to make yourself feel better, go back to your list and do something from it instead. You will be amazed how much money you will save without ever feeling deprived of anything.

Once you cut out emotional spending you’ll find you are able to save more. This is important because when you have savings you are less susceptible to the economic rollercoaster of life. If you had 100€ and you lost 10€, how would that make you feel? Would you feel the same way if you had 1,000€ or even 10,000€ and you lost 10€? See how the impact is lessened?

Money acts like a magnet. People who have no savings tend to feel anxious and focus on scarcity, which in turn affects their decision making. They tend to look for quick fixes like buying lottery tickets, or even worse get ripped off by “get rich quick schemes” that don’t work. When you have some savings, you will feel more relaxed and positive about money, and therefore more likely to attract more of it to you. Your focus is more on abundance and your thinking is calm, considered and more long term. So the chances of making good financial decisions are much greater.

Olive Branch Retreats offer you the chance to take time out from your everyday life. Whether you need to distress physically or mentally or both, the range of therapies on offer allow you to attain what you need in the tranquil setting of rural Spain. They operate from a luxury hotel near Jumilla Spain. For more information send an email to

Donna@olivebranchretreats.com

Gerry