I came across this term emotional spending and decided to read a little more into it. On investopedia, emotional spending is defined as when an individual spends money for the sole purpose of improving a mood. Some reasons why people engage in this behavior are to improve or maintain a mood and to cope with stress.
Personally, I am not too much of an emotional spender so it makes me wonder if it is all true. Does spending money really makes one happier, does it really improve mood and helps cope with stress? I am not the first to question that so the below is merely a summary on what I have gathered from existing papers (power of google).
Spending money improves a mood
Yes, it improves the mood but no, it does not make you happier. Continue reading Emotional Spending
CFP, representing Financial Alliance 