Why Do We Feel Guilty After a Splurge – Even If We Can Afford It?

Have you ever bought something for yourself, like a new gadget or handbag, and felt bad about it soon after? That uneasy feeling is called money guilt.

Money guilt is the regret or discomfort we feel after spending, even if the purchase was not unaffordable. It’s surprisingly common and can affect your financial choices in the long run.

• Table of contents

• Why do we feel guilty after spending, even if we can afford it?
• The psychology behind spending guilt
• Is it bad to feel guilty about spending money?
• Tips to overcome money guilt
• When does guilt become a problem?

Why do we feel guilty after spending, even if we can afford it?

The reason is not always about the money itself, but about what the money means to us. We may feel we’ve done something ‘wrong’ or ‘wasteful’, especially when the expense is for pleasure, not necessity. This feeling can sneak in even when:

• The money was budgeted.
• You didn’t have to borrow to meet the expense.
• You genuinely enjoyed the purchase.

The psychology behind spending guilt

Spending guilt is shaped by our emotions, upbringing, and cultural beliefs. Some key emotional spending triggers are:

• Emotional purchases: We often spend to feel better, to reward ourselves, or to cope with stress. When the emotion fades, guilt can replace the joy.
• Cultural beliefs: Many of us grow up hearing “money should not be wasted” or “saving is always better than spending”. These messages stay with us and create inner conflict, especially when we spend on things seen as ‘unnecessary’.
• Social comparison: Seeing others spend less or hearing judgement about what is deemed to be ‘wasting money’ can make us question our own spending choices, even if they were reasonable.

Also Read : What is Trading psychology?

Is it bad to feel guilty about spending money?

This discomfort about spending money can sometimes help us reflect and use our money more mindfully. But if it happens often – and for every non-essential purchase – it can impact both your mental health and your financial well-being.

Too much money guilt can:

• Take the joy out of your purchases.
• Lead to constant worry, even when finances are fine.
• Make you avoid spending altogether, even when it’s needed.

Tips to overcome money guilt

Here are some tips to build guilt-free spending habits:

• Set spending intentions: Before buying, ask yourself: “Is this meaningful or helpful for me right now?” Intentional spending reduces regret.
• Create guilt-free budgeting zones: Set aside money every month for fun or treats. When you know it’s part of the plan, the guilt may ease.
• Practise mindful spending: Avoid impulsive purchases when stressed or bored.

When does guilt become a problem?

• You feel guilty every time you buy something.
• You avoid things you enjoy as a form of self-restriction
• You delay necessary spending, like health check-ups or replacing broken items.

Also Read: What is behavioural finance?

Conclusion

Money guilt is common, but it doesn’t have to control your life. You can spend wisely and feel good about it. With a little awareness and some simple habits, you can enjoy your purchases and protect your financial well-being. Having a budget in place that makes room for non-discretionary purchases or things you like may help ease the guilt while supporting overall wellbeing. You can also consult with a financial advisor for customised advice.

FAQs

What is money guilt and why do we experience it?

Money guilt is the regret or discomfort we feel after spending, often caused by emotional triggers or beliefs about money.

Can feeling guilty after spending money affect our mental health?

Yes. Constant guilt can lead to stress, anxiety, and a poor relationship with money, even when finances are stable.

How can I overcome guilt after buying something for myself?

Set spending intentions, create a budget for guilt-free purchases, and avoid emotional spending triggers.

Is it normal to regret spending money even when it’s planned?

Yes. Many people feel this way due to habits or beliefs. Awareness is the first step to overcoming this tendency.

What are some healthy spending habits to avoid guilt?

Plan your spending, track your money, practise mindful buying, and allow space for joy in your budget.

At Bajaj Finserv AMC, we recognise that emotions are the cornerstone of investor behaviour – not just for investors but for investment professionals too. That’s why, behavioural finance is at the heart of our investment philosophy, InQuBe, which combines the Information Edge, Quantitative Edge and Behavioural Edge. By understanding, tracking and monitoring market sentiments and our own investment biases, we seek to make mindful and strategic investment decisions. Get the Behavioural edge by investing with Bajaj Finserv AMC. Read more about InQuBe here.