How’s the weather? ⛅️ It could be affecting your mood. 🙍🏽♀️
Many Kiwis are all too familiar with winter chills, grey days, and the occasional bout of the winter blues. For those who live in Wellington, Christchurch or further south, the winter months can hit super hard. As it turns out, it can hit your wallet, too.
Financial stress and mental health may be linked. 🤑🚨🧠
Whether it’s sticking to a budget, avoiding unnecessary expenses, or paying bills on time, there is mounting evidence that mental health can have a significant impact on how people make financial decisions.
You’re not alone. It’s estimated that about 1 in 2 Kiwis experience lower moods during the winter months (IPSOS, 2022). Around 10% of Kiwis experience seasonal depression, also known as seasonal affective disorder (SAD) (Dr Frances Pitsilis, 2010). This condition can have a significant impact on a person's mental health and well-being. What's often less talked about, however, is the link between seasonal depression and overspending. Remember, many others are going through the same challenges.
Indulging in “Retail Therapy” 🛍😌
As the gloom sets in, many Kiwis find themselves turning to “retail therapy” to cope with their low mood. They might make impulse purchases or spend excessively in an effort to lift their spirits. While indulging in a bit of retail therapy now and then is perfectly normal, excessive and impulsive spending can have detrimental effects on both financial and mental well-being.
According to a 2014 study (SSRN), spending money, even on impulse, can give people a sense of control over their environment and (at least temporarily) alleviate feelings of sadness or hopelessness. Although fleeting, it appears money can buy a little happiness. While there’s nothing wrong with treating yourself, there are more sustainable ways to improve your mood without burning a hole in your wallet.
For some, the aftermath of overspending can lead to feelings of guilt, regret, and more stress from increased financial strain. Using shopping as a coping mechanism when you’re down or depressed can create a cycle of negative reinforcement. The act of overspending provides temporary relief from negative emotions but ultimately worsens the situation by increasing financial stress without addressing the root of the problem.
You can lift your mood without lifting your wallet. 😅
Create a plan. 🧭
If you’re feeling stressed about money, having a plan in place or creating a budget can help you regain a sense of control. Sticking to a budget and setting a time to review your spending regularly is an effective strategy to bring spending under control. You may also find it helpful to set clear financial goals, such as saving a certain amount each month or paying off a specific debt. Setting goals can provide extra motivation, making you less likely to deviate from your plan.
Avoid temptation. 🛒
Avoiding triggers such as online shopping websites or malls and being mindful of the emotional motivations behind purchases can help people regain control over their spending habits.
Create healthy habits. 🛀
Seeking healthier ways to manage negative emotions, such as practising mindfulness, meditation, physical exercise or socialising with friends, family or workmates, are all great ways to support our emotional needs. Recognising how our moods can impact spending behaviours and taking proactive steps to address both mental and financial well-being ultimately help us find healthier coping mechanisms that promote long-term emotional balance and financial stability.
Ask for help. 👯♂️
According to a survey from Sorted of 2,600 people, stress about money caused 31% to avoid getting help, and 29% reported feeling embarrassed. Money is something we don’t talk about enough in this country. Remember, you are not alone. Reach out and ask for help. There are people and resources available to support you.
Our mental health plays a substantial role in everything we do. Financial stability, stress about money, financial debt and overspending are all interlinked. If you set money goals for yourself, consider asking a trusted friend or family member to help keep you accountable.
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For resources and information about Seasonal Affective Disorder and how to treat it, check out https://mentalhealth.org.nz/conditions/condition/seasonal-affective-disorder
For more information and resources about depression, visit https://www.depression.org.nz/ or call 0800 111 757 to speak to a trained councillor from their Depression and Anxiety Helpline.
