How to Stop Spending| bpHope.com

The impulsivity of mood episodes can lead to financial chaos — but awareness, planning, and support can help bring spending under control.

Key Takeaways

• Overspending can be a symptom of bipolar disorder, not a personal failing. Mood episodes can make impulsive spending feel reasonable or provide temporary emotional relief.
• Planning ahead, setting financial safeguards, and involving someone you trust can help reduce the risk of impulsive spending during mood episodes.
• Practical steps, from addressing debt to seeking support, can help rebuild financial stability after a mood episode.

Much like anyone else, people with bipolar disorder can struggle with debt, ill-advised investment decisions, spending sprees, and other money snafus. However, the dynamics of this psychiatric condition can make the ramifications of such missteps much more serious.

Thankfully, managing both a bipolar condition and a healthy financial life aren’t incompatible. It takes an understanding of the various ways a bipolar disorder diagnosis can impact your finances and, equally important, what you can do to head off any problems as effectively as possible.

How Mania and Hypomania Affect Money Decisions

Mania and hypomania are “up” periods in which a person’s confidence is exceedingly — if not excessively — high. During such times, financial choices can seem sensible at the time but, in retrospect, prove downright foolhardy.

“One of the hallmarks of [mania] is overconfidence,” says Francis Mark Mondimore, MD, a psychiatrist and associate professor of psychiatry and behavioral sciences at the Johns Hopkins University School of Medicine in Baltimore. “People can do foolish things financially and take risks they may not otherwise take.”

Many individuals with the diagnosis often make financial missteps during significant mood episodes. But others, Dr. Mondimore notes, settle into hypomania — a state that isn’t as obviously irrational or extreme, yet still prompts financial decisions that would otherwise seem ill-advised. “Hypomania is less severe,” he says, “so it doesn’t come off as complete disorganization. Rather, it seems more like an elevation of mood and energy level.”

“That’s where people can really get into the most financial trouble. Because they’re not so grossly disorganized, people can walk into a dealership, buy a car, and no one would think twice about it. It really is the most dangerous state.”

Signs Your Spending May Be Linked to a Mood Episode

According to Bipolar UK and qualitative research on this topic, signs that you may be overspending due to a mood episode include:

• Suddenly buying things you don’t need 
• Suddenly becoming uncharacteristically generous or giving large amounts of money away
• Feeling a strong compulsion to spend, as though someone or something is driving you to do it
• Using shopping to lift you out of a low mood 
• Maxing out your credit cards, overdrafts, or finding money from other sources to maintain your new spending habit
• Avoiding bank statements, credit card statements, or anything that forces you to face the extent of your spending
• Any sudden change in spending accompanied by a considerable change in mood 

Why Spending Can Feel Urgent or Reasonable at the Time

During a mood episode, spending may not feel reckless, even though it is. Hypomania and mania can bring increased confidence and impulsivity, and it can become harder to pause and think twice before you act. 

On the other hand, if you’re feeling low, spending can provide a temporary sense of relief, making you feel uplifted in the moment — like the dark skies have finally dissipated.

“People use a variety of strategies to self-medicate. Shopping can definitely be one of them,” says John O’Brien, PhD, a therapist in Portland, Maine. The need to feel better can make shopping feel compulsive, or urgent. “People can go off on spending sprees that grow into genuine manic episodes,” says Dr. O’Brien.

“Another difficult part is recognizing when a “down” period ends and what can happen after that,” Mondimore says. “Periods of feeling good — when you can make financial mistakes — are often not recognized as abnormal mood states.”

How Easy Access Can Fuel Bipolar Overspending

Couple these issues with the sheer variety and availability of ways to spend money recklessly, and the prospect of overspending can become all the more likely. 

The result? It’s easier than ever to spend in ways you might later regret. From mega malls with hundreds of retailers to the internet where tens of thousands of shopping options are a click away, a person with bipolar disorder looking to spend has an unhealthy lineup of choices, with the potential for lifelong financial hardship.

Real-Life Consequences of Bipolar Spending Sprees

One of the most common problems experienced by people with bipolar disorder is spending sprees — shopping expeditions that are more about the spending process than any genuine desire for the items purchased.

The consequences of bipolar spending sprees can be disastrous. Take Lynn, for example, whose love of spending gradually deteriorated into irrational spending sprees. “[I’d] end up buying things at random whether I needed them or not,” she says, adding that soon after that, she began to bounce checks regularly, borrowing money from every source possible.

It was only when she was diagnosed with bipolar disorder that she understood her money problems ran even deeper than she thought.

“At one time I had eight outstanding payday advance loans … . One time one of the lenders called me at work and said they were going to get me for internet fraud because of applying for loans on the internet and then not following through with the payment,” she recalls.

It’s also not uncommon for financial professionals to get a firsthand view of the damage that bipolar disorder can do to what once was a solid financial life. Financial planner Glen Clemans, based in Lake Oswego, Oregon, says he worked with a female client with bipolar. “She initially had $1 million, but then she started day-trading stocks on the internet,” says Clemans. “She lost about $600,000 in a manic spree. When we started working together, she told me that she has bipolar disorder.”

How to Stop Bipolar Overspending Before It Escalates

Fortunately, there are several steps you can take and strategies that can help prevent financial mishaps when you’re living with bipolar — or, at the very least, drastically reduce their impact. 

Recognize the Red Flags

The first step is awareness. Both the individual with bipolar and those close to them should get to know the warning signs indicating a potential shift in mood and spending habits.

“The real key is recognizing the red flags that can crop up,” says Mondimore. “But, they’re as individual as the person, so [recognizing these red flags] comes with experience.”

Create an Accountability Plan With Someone You Trust

Equally important is having a comprehensive plan to head off irrational money decisions before they occur. For instance, if someone maintains an investment portfolio, consider working with a trustworthy financial planner, adviser, or broker to set financial goals and outline reasonable steps to achieve them. 

If it’s appropriate, let them know about your bipolar diagnosis. A financial adviser who knows your goals can notice those instances when a particular behavior doesn’t seem appropriate. 

“I can’t legally say ‘no’ if, for instance, a client calls and orders a trade that doesn’t seem to make sense,” says Clemans. “But if the behavior seems odd, that can provide a check. I can either suggest that we meet face-to-face to discuss it, or I can contact a family member or friend who may be able to intervene.”

Involve Your Family or Friends

You can also create this plan with a family member or a trusted friend. Consider asking them to help limit your spending when you’re unwell. The mental health charity Mind suggests a lasting power of attorney in cases where you’ve experienced recurrent financial trouble as a result of your mental health. 

“Even if [a person is] fairly depressed or manic, sometimes pointing out that what they’re suggesting doesn’t fit with the plan you agreed on may work,” adds O’Brien. “Sometimes, that can cut through the emotions.”

Use Cash, Spending Limits, and Account Safeguards

Here are more potential ways to future-proof your finances in case you experience a mood episode and become tempted to overspend.

• Avoid high-limit credit cards. If possible, go without a credit card entirely — or opt for one with a very low limit.
• Use debit cards instead. Since they’re tied to a bank account, they help restrict spending to available funds.
• Work with your bank. Ask them to remove your overdraft or set a small overdraft limit, or move your savings into an account that requires advance notice before you can withdraw.
• Consider switching to cash. Research has shown that paying with physical cash is more psychologically ‘painful,’ which could make you spend less and make fewer impulsive choices.
• Stick to a treatment and financial plan. Staying consistent with mood treatment can help with impulse control and better decision-making.
• Appoint a trusted support person. Consider granting financial power of attorney or setting up joint accounts that require two signatures.

How to Rebuild Financial Stability After Overspending

After coming out of a mood episode, you may find the consequences of your overspending fairly devastating. But it’s important to stay positive. Take it one day at a time, and consider following the steps below.

• Acknowledge your debt. Having the courage to face your debt is often the first step, and one you should give yourself credit for.
• Speak to someone you trust. Talking about money and debt can make you feel less alone, less stressed, and lead to better financial decisions. 
• Tackle debt strategically. Try paying off the smallest debt first to build momentum.
• Explore debt consolidation. Combining balances may help lower monthly payments and make progress feel more manageable.
• Above all, don’t give up. No matter how intimidating the prospect of rebuilding your finances may be, try to stay committed and focus on making steady, incremental progress.

When to Get Help for Mania, Debt, or Financial Risk

If bipolar symptoms are starting to affect your money, it may be time to get support for both your mental health and financial health.

• Contact your healthcare provider if mania, hypomania, or other bipolar symptoms are making you overspend.
• Seek help sooner rather than later if your spending feels difficult to control or you feel compelled to spend money.
• You can get free debt advice if you’re struggling to keep up with repayments or are feeling overwhelmed. Nonprofit debt counselling agencies that provide free-of-charge financial counselling include GreenPath Financial Wellness, HUD-approved housing counselors, or the National Foundation for Credit Counseling (NFCC).
• Consider getting both financial support and mental health support from your provider at the same time, especially if you feel the mood symptoms and financial problems are intimately linked.

FAQ

Why do people with bipolar disorder overspend?

People with bipolar tend to overspend because they experience a mood episode — like mania, hypomania, or sometimes depression — which can affect judgment and impulse control, making spending a compulsion.

Is overspending a symptom of mania?

Overspending can be a symptom of mania, especially if it’s accompanied by other signs and symptoms, such as agitation, overconfidence, needing less sleep than usual, and impulsive or risk-taking behavior. 

Can hypomania cause impulsive spending?

Yes, hypomania can cause impulsive spending, and it’s usually harder to detect. Because the mood shift isn’t as dramatic as a manic episode, hypomania can be especially dangerous for one’s financial stability.

How do I stop spending money during a manic episode?

If you’re experiencing an episode and are struggling to control your spending, try to reduce your access to money and get help immediately. Lower your card limits, speak to someone you trust, and contact your healthcare provider as soon as you’re experiencing symptoms of mania.

What should I do after a bipolar spending spree?

After a bipolar spending spree, try to let go of any shame or judgment and take stock of what you spent and owe, all the while giving yourself credit for the courage that it takes to do so. Take all the help you can get — from friends, family, and your mental health care team. With patience, positivity, support, and some of the tips outlined in this article, you can rebuild your financial stability, one day at a time.

Can bipolar overspending cause debt or bankruptcy?

Yes, bipolar overspending can cause debt, bankruptcy, and broader financial instability, especially when linked to mood episodes like mania or hypomania.

Additional reporting by Jeff Wuorio.

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Updated: Originally printed as “The Spending Spree”, Spring 2005