Controlling Bipolar Mania’s Spending Sprees | bpHope.com (2024)

Overspending is a common occurrence during manic episodes. Here are some tips for how to protect your money.

For much of her life, Lynn assumed her love of spending money was nothing more than a carryover from her childhood.

“There were some warning signs, but I thought it was because I came from a family that didn’t have much money,” she says. “When I got a job, I would spend down to the last penny in my pocketbook. That’s no exaggeration.”

For Lynn, things only deteriorated from there. On top of irrational spending sprees — she’d go to the store and “end up buying things at random whether I needed them or not” — Lynn began to bounce checks regularly. She borrowed money from every source possible. It was only when she was diagnosed with bipolar disorder that she understood her money problems ran even deeper than she thought.

“At one time I had eight outstanding payday advance loans, five of which I am still paying on. It got so bad with those that one time one of the lenders called me at work and said they were going to get me for Internet fraud because of applying for loans on the Internet and then not following through with the payment,” she recalls. “I ended up borrowing money from three co-workers to help pay off the most pressing loans. Nobody could believe the things I did.”

Bipolar Disorder and Impulsive Spending

People with bipolar disorder are very much like everybody else, and how they handle money is no exception. Just like anyone, those with bipolar can struggle with debt, ill-advised investment decisions, spending sprees, and other money snafus. The only trouble is, the dynamics of the disease can make the ramifications of such missteps all the more disastrous.

However, managing both a bipolar condition and a healthy financial life aren’t lost causes by any means. It takes an understanding of the various ways that a bipolar disorder diagnosis can impact your finances and, equally important, what you can do to head off any problems as effectively as possible.

One of the most common problems experienced by people with bipolar disorder is spending sprees — shopping expeditions that are more about the spending process than any genuine desire for the items purchased.

“People use a variety of strategies to self-medicate. Shopping can definitely be one of them,” says John O’Brien, PhD, a therapist in Portland, Maine. “They can go off on spending sprees that grow into genuine manic episodes.”

But the possibility of real financial problems isn’t limited to low periods when spending can lift a mood. As Frank Mark Mondimore, MD, a psychiatrist and associate professor of psychiatry and behavioral sciences at the Johns Hopkins University School of Medicine, points out, the opposite can prove just as devastating. During those “up” periods in which a person’s confidence is exceedingly — if not excessively — high, financial choices can be made that seem sensible at the time but, in retrospect, are downright foolhardy.

“One of the hallmarks of the [up] condition is overconfidence,” says Dr. Mondimore. “People can do foolish things financially and take risks they may not otherwise take.”

It’s not uncommon for financial professionals to get a firsthand view of the damage that bipolar disorder can wreak on what once was a solid financial life. Financial planner Glen Clemans says he worked with a female client who presented him with a $400,000 financial portfolio. While seemingly substantial, it was paltry when compared to the $1 million nest egg with which she started out shortly before.“She initially had $1 million, but then she started day-trading stocks on the Internet,” says Clemans. “She lost about $600,000 in a manic spree. When we started working together, she told me that she has bipolar disorder.”

Hypomania and Spending

Bipolar disorder can manifest in ways that make it challenging to recognize. Many individuals with the diagnosis may make financial mistakes when experiencing significant symptoms. However, as Mondimore notes, some might settle into a state of hypomania. That, he explains, is not as visibly irrational or extreme as other states, but still problematic enough to prompt financial steps and decisions that, considered under different circ*mstances, would be dismissed as ill-advised.

“Hypomania is less severe, so it doesn’t come off as complete disorganization. Rather, it seems more [like] an elevation of mood and energy level,” he says. “That’s where people can really get into the most financial trouble. Because they’re not so grossly disorganized, people can walk into a dealership, buy a car, and no one would think twice about it. It really is the most dangerous state.”

The confusing nature of bipolar disorder can go even further than that. As Mondimore says, a person who may have been in a down state for weeks or months and suddenly emerges from that bleak setting is likely to be relieved that his mood has lifted. However, feeling better doesn’t necessarily bring emotional and psychological balance.

“Another difficult part is recognizing when a down period ends and what can happen after that,” he says. “Periods of feeling good — when you can make financial mistakes — are often not recognized as abnormal mood states.”

Recognizing There’s a Problem

The financial problems aren’t limited to self-serving spending orgies. Until she was diagnosed with bipolar disorder in her late forties, Jackie thought her financial generosity to various inner city religious organizations was simply the right thing to do.

“I gave them all my retirement money, thinking that was what God wanted me to do,” she says. “I also charged about $40,000 for airline tickets, hotel rooms, and other expenses. It was only when I was out from under the grandiosity of the disorder that I saw what was happening.”

Couple those issues with the sheer variety and availability to spend money recklessly and the potential for lifelong financial hardship becomes all the more problematic. From mega malls with hundreds of retailers to the Internet where tens of thousands of shopping options are a mouse click away, a person with bipolar disorder looking to spend has an unhealthy lineup of choices.

Furthermore, credit card offers arrive in the mail on a daily basis. Particularly perilous are television-based shopping shows and networks where items are pitched with glamorous ruthlessness.

“Those really feed into the manic energy that many individuals with bipolar disorder experience,” says Mondimore.

Strategies to Manage Bipolar Spending

Fortunately, several steps and strategies will help prevent financial mishaps or, at the very least, reduce their impact. The first step is awareness. Both the individual with bipolar and those close to them should get to know the warning signs indicating a potential shift in mood and spending habits.

“The real key is recognizing the red flags that can crop up. I know one person whose mood was about to change when he started tearing out response cards from magazines,” says Mondimore. “But, they’re as individual as the person, so [recognizing these red flags] comes with experience.”

Equally important is having a comprehensive plan to head off irrational money decisions before they occur. For instance, if someone maintains an investment portfolio, working with a trustworthy financial planner, adviser, or broker is smart. Work out a detailed overview of financial goals and reasonable steps to attain those objectives. If it’s appropriate, let them know about the bipolar disorder condition.

That’s sensible on several levels. For one thing, it’s wise to map out a financial plan, no matter your obstacles. But it also can prove valuable to a financial advisor who knows your goals and what you’ve agreed to do. That way, they can notice those instances when a particular behavior doesn’t seem appropriate.

“I can’t legally say ‘no’ if, for instance, a client calls and orders a trade that doesn’t seem to make sense,” says Clemans. “But if the behavior seems odd, that can provide a check. I can either suggest that we meet face-to-face to discuss it, or I can contact a family member or friend who may be able to intervene.”“Even if they’re fairly depressed or manic, sometimes pointing out that what they’re suggesting doesn’t fit with the plan you agreed on may work,” adds Dr. O’Brien. “Sometimes, that can cut through the emotions and, even if it doesn’t, it’s still worth a try.”

Enlist Your Support System

That strategy can be taken a step further if need be. Should the potential fallout be serious enough, investigate giving a friend or loved one financial power of attorney to limit individual money decisions. Even something as simple as checking accounts where two signatures are required can make it more difficult to follow through on ill-advised financial choices.

Consider some consumer-based moves as well. If you can manage, go without a credit card or, as an option, one with an exceedingly modest credit limit. Investigate debit cards as an alternative. Rather than a line of credit, these are tied to a bank account and can effectively limit spending to whatever assets are in the account.

Experts and people with bipolar disorder agree that it’s imperative to stick with both a treatment plan as well as a systematic approach to getting out of debt. If, for instance, you have several credit card debts, paying off the smallest one first gives you a sense of progress. As well, consider consolidating various debts to make monthly payments more affordable.

Above all, no matter how intimidating the prospects, don’t give up. As Lynn herself notes: “It’s been a very destructive path that has cost me thousands and thousands of dollars over the past 30 years. It’ll probably take me many years to get out of that debt, but that’s something I am dealing with.”

Updated: Originally printed as “The Spending Spree”, Spring 2005