Why spending money relieves stress? (2024)

FAQs

Why spending money relieves stress? ›

Spending money on making a purchase can make you feel like you have something that you previously lacked, which can help you to reduce stress.

Scientific studies tell us that spending money triggers a rush of endorphins and dopamine, the instant gratification creating a momentary feeling of pleasure comparable to a chemical high.

Analyzing your monthly expenses with your income and considering what expenditures can be trimmed can help create the breathing room you need to begin saving and minimizing your financial stresses. The more you live within your means, the greater financial freedom you will experience.

Although people may use spending as a coping strategy, they may encoun- ter unintended psychological consequences, such as feeling a loss of control, followed by frustration and regret (Baumeister, 2002).

Anxiety. Money can be a safety net; without it, you may feel vulnerable and anxious. And all the worrying about unpaid bills or loss of income can trigger anxiety symptoms such as a pounding heartbeat, sweating, shaking, or even panic attacks. Relationship difficulties.

The mental reason to why you feel eased when you spend under stress, however, is because you reached some sort of resolution. “It is the act of making a decision — not the receipt of the purchase — that provides a measure of control and delivers that temporary relief,” Wright says.

You might spend to make yourself feel better. Some people describe this as feeling like a temporary high. If you experience symptoms like mania or hypomania, you might spend more money or make impulsive financial decisions. You might have an addiction or dependency which makes you spend money.

when you are stressed, you often feel a sense of lack or helplessness. Spending money on making a purchase can make you feel like you have something that you previously lacked, which can help you to reduce stress.

Some call it “retail therapy” because shopping can make some of us feel a lot better (especially when we're feeling down or stressed out). San Francisco therapist Peggy Wynne says “we all enjoy a little retail therapy now and then. In small, manageable doses it can soothe the soul.

What is the psychology behind spending money? ›

This is known as the “psychology of spending.” Spending money, as opposed to saving, provides an instant feeling of gratification and control. We may spend to fill perceived voids in our lives, to please others, feel “better than” others, or a whole host of other emotionally-driven reasons.

One sign of financial trauma is compulsive or impulsive spending. Individuals experiencing financial trauma may engage in excessive shopping or spending habits as a means to alleviate their emotional distress or seek temporary relief from their financial worries.

This will help you to stay within your financial limits. * Wait 48 hours before making the purchase. This will give you time to think about the purchase and make sure that it's something you still want. The 48-hour rule is a simple but effective way to avoid impulse purchases and make more informed financial decisions.

A survey conducted in 2022 found that young adults aged between 18 and 24 were more likely to suffer from moderate to severe stress, depression, and anxiety symptoms.

During a manic episode, many people with bipolar disorder tend to make poor financial decisions – overspending, impulsive buying, or excessive generosity. Not only do these decisions lead to harsh financial consequences, but they can also leave you feeling guilty and remorseful, and put a strain on your loved ones.

“Money dysmorphia is when you have a warped or distorted view of your finances,” said Danielle Desir Corbett, a personal finance expert and host of “The Thought Card” podcast. “You see your financial situation much differently from your reality.

Emotional spending—sometimes described as “retail therapy” or impulse buying—is when you make a purchase that is guided more by your emotions than your need for a certain product or service.

Money contributes to happiness when it helps us make basic needs but the research tells us that above a certain level more money doesn't actually yield more happiness. Not only did earning more money make participants happier, but it also protected them from things which might make them unhappier.

“When you've gone through a period of deprivation and feeling down, buying something, particularly a splurge item, is a mood booster. At the biological level, spending releases powerful neurotransmitters that make us feel pleasure and give us a sense of well-being,” Gray said.

Increased self-esteem: Buying something new can boost self-esteem and self-confidence. It may make you feel good about yourself, enhancing your perception of your own worth or status. The act of acquiring a new possession can provide a temporary sense of accomplishment or validation.