In a world where social media can make us feel like we’re not doing enough, and financial pressures continue to mount, it’s no surprise that many of us find ourselves falling into spending habits and mindsets that do more harm than good. Emotional spending, hustle guilt, and other financial red flags can become so normalized that we hardly recognize them as issues—until it’s too late.
Emotional Spending: The Silent Wallet Drainer
Emotional spending, or what some call “retail therapy,” is a habit many of us indulge in without much thought. Bad day at work? Swipe the card. Argument with a partner? Add to cart. According to a study by Slickdeals, the average American spends about \$5,400 a year on impulse buys, often driven by emotions rather than need. This figure can be even higher for Black women who face unique societal pressures to always “look the part.”
Dr. Stacey Tisdale, a financial behavior expert, emphasizes that emotional spending is not just about the money—it’s about avoidance.
“Many women spend it as a way to avoid dealing with deeper issues. It’s a form of self-soothing, but like most quick fixes, it’s temporary and costly,” she’s previously explained.
To curb emotional spending, Tisdale suggests setting a 24-hour rule for non-essential purchases. “If you still want it after a day, then it’s more likely to be a conscious decision rather than an emotional one.”
Hustle Guilt: The Modern-Day Burnout Trap
The culture of ‘rise and grind’ has many of us feeling like there’s no room to rest. Hustle guilt is that nagging feeling that you’re never doing enough, even when you’re running on empty. It’s the reason why you answer emails at midnight or say ‘yes’ to one more project even when your plate is overflowing.
But here’s the catch: hustle guilt doesn’t lead to more productivity—it leads to burnout. According to the American Psychological Association, chronic stress and overwork can lead to both mental and physical health problems, including anxiety, depression, and heart disease.
Financially, hustle guilt can manifest in overcommitting to side hustles that aren’t profitable, signing up for expensive networking events out of fear of missing out, or stretching yourself too thin across multiple freelance gigs with low pay. Experts have explained that the constant pressure to keep going, to keep making money, can actually cost you more in the long run when it compromises your health and well-being.
Other Financial Red Flags You Might Be Missing
Living Paycheck to Paycheck Without a Plan
Many of us have grown accustomed to the cycle of waiting for payday just to get back to even. According to a study by LendingClub, 60% of Americans live paycheck to paycheck, and this statistic includes individuals with six-figure salaries. The key difference? The ones who manage are usually those with a plan.
Setting up automatic transfers to a savings account, building an emergency fund, and budgeting with intention are critical steps. It’s not about how much you make; it’s about how much you keep and how you manage it.
Ignoring Credit Card Debt
Swiping your credit card for convenience is one thing, but ignoring the balance is another. High-interest rates can turn a $100 purchase into $200 or more if left unpaid. The average credit card interest rate in the U.S. hovers around 24%, which means the longer you ignore it, the worse it gets.
Not Knowing Your Net Worth
It’s easy to keep a mental tally of what you make each month, but do you know your net worth? Net worth is the sum of all your assets minus your liabilities. Not knowing this number is like running a race without knowing where the finish line is. Make it a habit to assess your net worth quarterly, adjusting your goals as necessary.
No Retirement Plan in Sight
For many Black women, the idea of retirement can feel like a distant dream, especially when dealing with the here and now. However, the earlier you start, the less you’ll need to save each month to meet your goals. Employer-sponsored 401(k)s, Roth IRAs, and investment accounts are all vehicles that can help you build a secure future.
Breaking the Cycle
Recognizing these red flags is the first step to financial empowerment. Start small: a 24-hour hold on emotional purchases, a weekly check-in on your spending, and setting up auto-transfers to a savings account can make a world of difference.
More importantly, understand that financial health is a journey, not a destination. Give yourself grace. Financial mistakes don’t define you; how you respond to them does.
The key is to shift your mindset from surviving to thriving—because you deserve to do more than just make it to the next payday; you deserve to build wealth, joy, and peace of mind.