The Dopamine Spending Hit
First, I hate it when I miss the blog post deadline. The most frustrating part is that I actually have a lot of topics I want to write about, but sometimes life just gets rolling. So here we are, a couple of days late but in so many ways I’m glad I waited.
Inspiration struck today as I listened to someone speak about the differences between Dopamine and Serotonin through a lens I had not heard before, and it got me thinking. "How does Dopamine impact our financial lives and what can we do about it?”
So, before I get too far into things, I have a little bit of science background for those who (like me) may have zoned out during biology.
Neurotransmitters
The brain is like a computer, and the neurotransmitters are the tiny messages sent to keep our body and mind working properly. These neurotransmitters are chemicals that pass signals between nerve cells, called neurons. These signals are what give us our feelings, thoughts, and responses throughout the day. Neurotransmitters play a huge role in how we feel and act, the areas we want to look at are in the following spaces:
Happiness and Motivation
Mood and Relaxation
One of the neurotransmitters that is at work in our brain chemistry is dopamine. This transmitter is often associated with the “Feel Good” moments. It serves as the reward system in our brain, making us feel happy when we do something exciting. A couple of examples that popped up were winning a game or eating your favorite food. Whenever we achieve something, there is often a dopamine release into our system. The Cleveland Clinic notes that too much dopamine is linked to risky behavior, while too little can make you feel unmotivated.
So How does Dopamine Fit into our Spending Habits?
Since Dopamine is associated with our brain’s reward system, it is released when we experience something pleasurable. The quick impulse fulfillment that we find in impulse buying or getting something new. When dopamine is released, it binds to the dopamine receptors in the neurons, creating feelings of pleasure and reward. This process reinforces the behavior and causes us to want to repeat it, seeking that feeling again.
Impulse spending often provides a quick and easy dopamine rush. However, when a behavior like this is repeated frequently it can result in a dopamine overload and desensitization. Let’s look at the cycle that follows:
Overstimulation of Receptors: As the brain is flooded with dopamine every time we make a purchase, the spending starts to become habitual and compulsive.
Desensitization: So now the brain is seeking to protect itself, it reduces the sensitivity of the receptors. This is called downregulation.
Need for More Stimulation: As the receptors become less sensitive, the same level of dopamine no longer triggers the same pleasure. This leads to dopamine tolerance, pushing us to spend more or buy more exciting things to achieve the same feeling as before.
Reduced Natural Pleasure: Everyday activities begin to bring less satisfaction since they don’t produce the same dopamine spike.
This cycle becomes quite vicious. Most of us can probably see where there’s danger and why addictive elements in our lives can fall into this path. But that is a much broader concept beyond what we are here for, which is learning how to work within our budget and financial life choices.
So What is the Fix?
The good news is that there are methods to reset your Dopamine System, but it requires behavioral changes:
Dopamine Fasting by taking breaks from activities that trigger dopamine spikes, such as impulse spending, can help balance receptors.
Engaging in Healthy Habits like exercise, good eating, and proper sleep.
Set Delayed Gratification Goals: Shifting from a focus on instant rewards to long-term goals, which can rebuild a healthier response to dopamine and begin to engage serotonin transmitters.
It is the last one that speaks volumes.
Setting Goals helps us to combat the impulse spending urges of dopamine release and brings a life balance. If you are interested in helping set financial goals and having someone to walk alongside you in this, please don’t hesitate to reach out!
