Retail Therapy

Retail therapy summary:

• Retail therapy is the act of shopping in order to boost your mood.

• Retail therapy could be used as an attempt to cope with stress or sadness. 

• People who turn to retail therapy too often risk landing in debt.

Retail therapy definition and meaning

Retail therapy is shopping for the purpose of improving your mood or state of mind. With retail therapy, you're generally not shopping for a specific item you need. Rather, your goal may be to find an item that lifts your spirits. Retail therapy is something that happens in stores or online. 

Key concept: Retail therapy can derail your personal finances if you’re not careful.

Comprehensive breakdown of retail therapy

When you engage in retail therapy, you're typically shopping for wants, not needs. You may not even have a specific item in mind. The goal of retail therapy is generally to improve your mood or cheer yourself up. 

Some people use retail therapy to reward themselves for hard work, such as after completing a stressful exam or a long project at work. Other people use retail therapy to compensate for things that may be missing in their lives, whether it's a romantic partner or a goal that seems out of reach.

Retail therapy, in moderation, could be an effective mood booster. It could also be a good distraction when you have negative thoughts you're struggling to shake. 

However, too much retail therapy could have a negative impact on your finances. If you overspend on retail therapy, you risk ending up needing debt relief. 

Carrying too much debt could result in credit score damage, making it harder to borrow money when you need it. Too much retail therapy could also get in the way of meeting other financial goals, like building an emergency fund.

The purpose behind retail therapy is to feel better mentally. But if you spend too much money on retail therapy, you may end up feeling guilty or angry with yourself, instead. 

Example of retail therapy

You're having a tough week. Your manager was critical of your work, your sibling picked a fight over something silly, and you're feeling lonely because your partner is away on a business trip. You may decide to go shopping for clothing you want but don't need, with the express purpose of helping yourself feel better. That's retail therapy.