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Try as we do, it is often difficult to plan finances properly each month. Many people tend to spend money emotionally rather than wisely. Beware! This emotional attachment with money can be harmful to you and your family. It could well be the culprit behind your persistent stress, anxiety and dissatisfaction!
When it comes to spending money, it is crucial to think logically rather than emotionally. Financial decisions made emotionally seldom do any good. In fact, they only disrupt your budget and lead to money problems over time.
How Using Your Money Emotionally Can Be Harmful
1. It Gets You Fair-Weather Friends
What they have told us over the ages is indeed true: money cannot buy love or friendship. People may want to hang out with you if you pay their bills or buy them gifts. But it’s not you they’re interested in; it’s only the money. These relationships will be gone as soon as the money does – and it sure will if you spend endlessly!
2. It Doesn’t Heal Pain
Yes, shopping can seem to bring pleasure. After all, don’t we all love our ever popular “retail therapy”? But money cannot fight loneliness or heal pain for too long. You’ll be more distressed than ever if you fail to redirect your angst and curb your money emotions. Chances are you’ll only get temporary relief and end up broke.
3. It Can Spoil Your Budget
Instead of thinking logically, many people gets emotionally attached with money and consciously or unconsciously adopt age old patterns of spending even if they aren’t in a position to spend that much. Remember to manage finances according to your current situation and this can be different from that of your much older and more experienced parents!
4. It Can Ruin Your Peace of Mind
Did you buy a brand new car just to impress your neighbours and friends and are now finding it hard to pay off the loan? Well, if you did, you’re again connecting money and emotional reactions. While driving around in an expensive car may be considered a status symbol by some, it can take away your peace of mind. Be practical and purchase only what you and your family really need. Unnecessary luxuries really don’t help.
5. It Can Spoil Your Children
Moms are often guilty of blindly fulfilling the demands of their kids just because they don’t want to break their hearts. Do you buy your kids things you can’t really afford or take them to places that dig a hole in your pocket? Don’t burden yourself all the time but learn to say no to your children. They need to learn that instant gratification isn’t always possible. Better let them face some disappointment now than grow up spoilt, right?
You know earning money is hard and there’s no way it can be justified to spend it illogically or emotionally. Consider all your expenses and set a budget every month. Stick to it and save the rest. When the time comes, you’ll have a nice amount to splurge on the occasional luxury or holiday and will be able to enjoy it in peace!