When we talk about and think about money, it can evoke very strong emotions. Sometimes we want to avoid it altogether. Even when we earn enough for our needs, we feel like it's still not enough. In fact, 73% of Americans rank their finances as the number one cause of stress, according to a survey from the American Psychological Association (APA). Often, we feel overwhelmed and stressed. When I talk with people, rarely do they feel hope and joy in their financial situations. Today, I want to dive into some of these emotions and how they can present within the context of money addictions.
1. Spending Addiction Many of us are familiar with the concept of spending addiction. People who suffer from this often feel the need to spend any money they get and more, usually in an attempt to feel better. This can be seen in individuals who have experienced financial abuse in the past, where they weren't allowed to spend. Once they're free to spend, it can get out of control. For those dealing with spending addiction, it's essential to seek help and begin by creating a realistic budget. But more than that, using tools like the SMART spending method can help you make intentional choices and curb unnecessary spending. George Kamel’s SMART spending concept offers a simple yet powerful framework:
Did you know? According to a 2023 study, approximately 6% of the U.S. population may struggle with compulsive buying disorder, with women being disproportionately affected. 2. Debt Addiction Debt addiction can wreak havoc on financial health. It often looks like someone constantly opening new lines of credit—credit cards, personal loans, payday loans—and using one to pay off another. This behavior often leads to a vicious cycle of debt accumulation, poor credit, and in extreme cases, bankruptcy. For help:
3. Financial Codependence Financial codependence occurs when individuals feel compelled to give money to others, even to their own financial detriment. A person with this addiction might continually provide financial assistance to friends or family members, draining their own resources. This can lead to stress, resentment, and eventual financial ruin. Overcoming financial codependence involves:
4. Money Hoarding At the other end of the spectrum from these mentioned addictions is money hoarding. This goes beyond simply saving towards goals or being wise with your money. It’s an obsession with holding onto every dollar, driven often by fear. People who hoard money may fear they will never have enough, or that financial security is always just out of reach. This fear can prevent them from spending on even small things that would bring joy or comfort. They may avoid social activities, turn down opportunities to celebrate with friends or family, or refuse to invest in experiences—all because of an overwhelming fear of future financial instability. Relationships can strain as they distance themselves from others to protect their financial resources. To overcome money hoarding:
5. Deprivation Addiction Deprivation addiction looks like intentionally living on the bare minimum, avoiding raises, promotions, or investments that could improve your financial situation. People who exhibit this behavior often feel unworthy of having more, or believe that living with less is a moral virtue. If you struggle with deprivation addiction:
6. Money Hunger On the other end of the spectrum is money hunger—an obsession with constantly seeking more income, new investments, or business opportunities. While ambition is not inherently bad, it can become problematic when it overshadows other aspects of life, like relationships or mental health. If you find yourself consumed by the pursuit of more money:
Money addictions, like any other addiction, can be overwhelming and difficult to manage, but they are not impossible to overcome. Whether it’s working with a financial coach, seeking therapy, or joining a support group, there are many ways to regain control. The key is recognizing these patterns and addressing them before they damage your financial future, relationships, or mental health. If you're struggling with any of these addictions or know someone who is, don’t hesitate to reach out to a professional therapist or to your financial coach. I’m here to help guide you to financial clarity and empowerment.
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