Understanding Money Disorders and How to Overcome Them

The Hidden Psychology Behind Our Spending Habits

The Reality of Money Disorders 📊

Money disorders are more common than you might think. According to Dr. Brad Klontz, author of "Mind Over Money," these disorders are recurring, self-defeating issues that people have with money. The average American has $38,000 in debt, a quarter of which comes from credit card charges. Money disorders often stem from underlying psychological issues like anxiety, depression, or trauma.

The Three Main Categories 🏷️

Money Avoidance Disorders

These disorders involve anxiety and a reluctance to deal with money. Financial denial is a common symptom, where people avoid looking at their statements or discussing money matters.

Relational Money Disorders

These disorders involve relationships with other people. Financial infidelity, where one hides spending behaviors from a partner, is a common example.

Money Worshipping Disorders

In these disorders, people equate money with emotional needs. Compulsive buying disorder, where people try to fill an emotional void through shopping, falls under this category.

The Role of Technology 📱

E-commerce is contributing to higher levels of money disorders. Dr. April Benson, a psychologist specializing in compulsive buying disorder, notes that internet shopping has made it easier for people to overspend, especially men who are now shopping online more than women in certain categories.

The Six Questions to Ask Before Every Purchase ❓

Dr. April Benson suggests asking yourself six questions before making a purchase:

1. Why am I here?
2. How do I feel?
3. Do I need this?
4. What if I wait?
5. How will I pay for it?
6. Where will I put it?

The Path to Recovery 🛤️

Both Dr. Klontz and Dr. Benson agree that money disorders are treatable. Awareness is the first step. Understanding your beliefs around money and where they originated can help break bad habits.