Even though there are estimates as to how many people are affected by this addiction, it’s a problem that many suffer in silence. The silence is the “real” reason they shop.
Shoppers feel compelled to buy and buy, to seek that new item to have in their lives. For many, the buying not only fills the nooks and crannies of their home but also the nooks and crannies of their emotional and psychological needs.
How Compulsive Shopping Affects Financial Planning
That fix is a little deceiving because it doesn’t last long and before long they’re looking for a new fix. The problem is that most middle income people may not have the income to support this addiction. Financial advisors know our clients need to save for college, a rainy day, retirement and a host of other financial needs. When they have this silent fix it works against all of that planning.
As an advisor I would never tell clients not to buy anything that makes them look and feel good. That would be ridiculous. Plus, there has to be something that people are working for. The challenge comes when the shopping becomes more than what’s affordable. That’s when I tell clients to cut back on their spending.
Compulsively Shop for Sales Only
One of the ways to potentially curb the financial affects of compulsive shopping is to shop almost exclusively during sales. By looking for nothing but sales items, shoppers get to scratch their itch but also don’t have to break the bank doing it.
Many people can reach their psychological high by simply looking for nothing but 40% off or more sales that work within their budget. Anything less would hurt them financially. They can then add up the savings they’ve made and put that amount in a savings account that they never touch, not even for emergencies.
Medically Treat Compulsive Shopping
That’s one way of working against compulsive shopping and its negative financial effects. The reasons for the addiction also need to be conquered. There are a number of organizations available to help people to combat the compulsion.
For starters, shoppers can talk with their primary physicians to find out how to handle their shopping addiction. Even if the physician doesn’t directly know how to deal with it, they can refer patients to resources that can help. The key part of the planning is that shoppers recognize the problem and take action to resolve the problem.
Shopping is a fun and freeing experience for many people. The key to shopping is to stay within income and living expense limits. If not, compulsive shopping can result in financial problems in the future. By doing a few things to curb the urge and add some discipline, shoppers can balance the need to have something new with the need to plan for their future.
Kolonji Murray - Kolonji Murray is President of the financial advisory firm Murray Wealth Group in New York. Prior to starting the firm in 2009, he worked ...
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