6 Ways To Stop ‘Retail Therapy’ From Destroying Your Finances

Happy two girls holding bunch of shopping bags.
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Did you have a bad day? Are you tired, stressed or just not feeling motivated? Well beware — you are now prone to drowning your sorrows in the practice of credit card debt via retail therapy.

The term “retail therapy” dates back to the 1980s and means exactly what you think it means: Shop your blues away! Though retail therapy can feel fulfilling in the moment, it can also wreak havoc on your financial health. So, here are six ways to avoid this behavior so your bank account can thank you later

Stop Shopping If You’re Struggling Financially 

With lingering inflation and poverty rates on the rise, the financial struggle for many Americans is stark and undeniable. During these times of political unrest and economic volatility, even with consumers cutting back on their day-to-day spending, there are alarming reports of loan and credit card delinquencies reaching new highs.

Given that so many people are already in a precarious place with money, it’s only logical that retail therapy could plunge them further into debt. So if you are struggling with money, put away the credit cards and just say no to adding anything to your cart for now.

Determine the Emotional Root of Your Problem

The main reason to avoid retail therapy is that it can hurt you in a financial sense, but it’s also important to understand why you have the impulse to shop your blues away. Get to the bottom of the issue. 

Just like you shouldn’t diagnose yourself using WebMD, you also shouldn’t try and improve your mental health by being your own retail therapist. If you get an adrenaline rush from a sale or crave the shopping vibes and just can’t seem to stop, it may be time to take a buying break altogether. Try a financial challenge like a no-spend month or at least ruling out impulse purchases by only shopping for items on your grocery list.

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Use Cash or Gift Cards Instead of a Credit Card

Using a gift card rather than a credit card is much like taking cash to the store. When you venture out for deals, consider this option, as it will limit your spending spree to a pre-determined amount.

If retail therapy is causing you to overspend or wander off the tracks of your budget, it’s wise to consider the cash-only approach when going to the mall. Leave your credit cards at home and just go with cash, a Visa gift card or cards for specific online shopping like an Amazon gift card.

Shop In-Person Instead of Online

There’s something about shopping online that can make money feel unreal or in greater supply than it actually is. Instead, opt for shopping in stores when possible to mitigate splurging.

Shopping in person also gives you the chance to see the product in real life and make sure it’s worth the money you’re about to spend. This does not mean you can’t splurge once in a while, but do so in moderation.

Reconsider Splurging on Others 

Retail therapy doesn’t always mean shopping for yourself; it can also mean shopping for others, which can be just as satisfying and perhaps feel even more justifiable. However, you must be mindful about what you can and can’t afford when it comes to purchasing gifts for loved ones.

This can be especially tough when shopping for your kids. In this case, determine your intent. Are you just shopping to cheer yourself up, or is there a greater good being served? Always weigh the pros and cons before you spend on others.

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Get the Help You Really Need

The bottom line is that everyone should be careful when tossing around the term “retail therapy.” Avoiding it doesn’t mean you can’t buy anything. Rather, it’s a matter of balancing needs and wants — something you’ve probably already picked up from budgeting.

If you are worried about your spending habits, consider talking with a financial advisor or even a therapist. Financial therapists can help you find the balance between money matters and mental health, ways to tackle anxiety related to money, and strategies for saving toward your goals.

Retail therapy isn’t always a bad thing, but there is an abundance of evidence that it can be a pretty dangerous coping mechanism … so think before you complete your purchase next time.

Nicole Spector contributed to the reporting for this article.

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