Reactive Spending and How to Fight It

Sometimes we can't avoid reactive spending. Something terrible happens, like with our car, and we need to get it replaced. 

It becomes about filling a perceived “need” at the time, which is usually led by emotions. We tend not to think about the actual cost of the amount of money being spent. 

Reactive Spending is Not Patient

One way to reduce reactive spending is to fight the urge to purchase or do this “thing” immediately. Since these types of purchases are usually emotional, we will want to have the item as soon as possible.

But if we can hold off on buying whatever it is that we want, that might be all we need to figure out if this is something that will add value to our lives. 

Sometimes emotionally spending money is not bad. The main thing is making sure that it aligns with your future goals, and is something you can afford. 

The Core Issue of Reactive Spending

We are responding to heightened emotions that usually fade with time. And when we commit ourselves to spend future income, we are gambling with our future. Even if you can afford to purchase something, it still might not mean it is a smart decision (but that is something you will have to figure out).