Money is a stressful topic for many of us. It stems from our upbringing, personal experiences, values, and beliefs. Money can send you on a guilt trip at times.

The idea of saving is so deeply ingrained in our DNA that any “unnecessary” (on second thoughts) expenditure will automatically send us on a guilt trip. The occasional treat, buying an expensive phone or enrolling in a yoga class can make you feel guilty. This guilt can create roadblocks in your financial journey. Rather than enjoying the life you have earned, this guilt may make you torture yourself to save.

 How does financial guilt develop?

Financial guilt could develop from your personal experiences that may not have been good. If financial constraints made your upbringing a difficult experience, you are likely to feel guilty when you are about to have or having a good time (stemming from an experience or an asset).

Peer pressure may lead you to spend more than you wish. You may want to impress your friends or colleagues. Or you may not want to miss out on the latest trend. You may overshoot your budget or even end up in debt. When everything fizzles out, guilt will set in.

The pandemic was a difficult phase for the whole world. We watched and read of people suffering and going through unimaginable grief. We may have been more fortunate, but we may not feel happy about it. This is an example of how happenings around us can plant financial guilt in us.

How to handle the guilt

There are various ways to tackle financial guilt.

Identify what is triggering your guilt
Emotional guilt is when you feel you did not deserve something or if you feel privileged compared to others who are suffering. Or you may be doing better than the others in your family, which may make you feel guilty about leading a better life. Situational guilt is when you overspend budget because of the fear of missing out (FOMO), the social malady. So, you ended up buying an expensive jacket that was not included in your budget simply because you wanted to “fit in”.

Never lose sight of your budget

Prepare a practical budget and stick to it. List your income and all possible expenses. Set aside savings for emergencies, education, retirement, etc. Then use what is left for yourself without any guilt.

Be practical 

Remember that when it comes to money, too many factors can affect its coming and going. Plan and control to the extent you can. Needs should get priority over wants. Cut down on unnecessary expenses and impulsive buying. At the end of it all, know when you must simply let go and relax.

Avoid regret trips

Money spent is gone. There is no point in wasting your energy and sleep in trying to analyse why you did that and beating yourself up. Learn from the experience and focus on not repeating the mistake.

We make mistakes and we regret those later. It’s the same with money. Look at mistakes as lessons and move on. Consult an advisor who can inject an element of objective professionalism so that you are not carried away by emotions—both before and after spending.