Your brain is sabotaging your finances – here’s how to stop it

Dubai: Ever convinced yourself that an expensive purchase was totally justified? You’re not alone. When it comes to money, we often fall into the same psychological traps, finding clever ways to rationalise spending that, deep down, we know we shouldn’t. And the worst part? We usually don’t even realise we’re doing it.

Next time you catch yourself using one of these classic justifications, pause and ask: Am I making a smart financial choice, or just talking myself into spending?

1. “It’s a special occasion!”

Birthdays, weddings, holidays, promotions—life is full of milestones that make spending feel not just justified but necessary. Splurging on a fancy dinner, an over-the-top gift, or an elaborate party might feel great in the moment, but when the credit card bill arrives, the excitement fades fast.

Of course, celebrating is important. But before swiping your card, ask yourself: What am I really trying to achieve? Memories? Happiness? Connection? Chances are, you can get all that without emptying your wallet.

2. “This will save me money in the long run!”

You set out to buy a single wrench for a DIY project, but when you see a 44-piece set on sale, it feels like a bargain. Sure, the set costs way more than you planned to spend, but per wrench, it’s a steal, right?

This is the classic trap of false savings. Just because something is a “deal” doesn’t mean you need it. Before making a purchase under the guise of saving, ask yourself:

• Do I actually need this?

• Would I buy it at full price?

• Can I truly afford it?

If the answer is no, that “deal” might just be draining your bank account.

3. “I need this!”

Understanding the difference between needs and wants is personal finance 101. But sometimes, we blur the lines to justify spending.

Example: Your old car is on its last legs, so you genuinely need a new one. But do you need a brand-new, top-of-the-line model with all the bells and whistles? Or would a reliable, used vehicle do the job?

Before making a “need-based” purchase, challenge yourself: Could I meet this need for less? If the answer is yes, your “need” might actually be a “want” in disguise.

4. “It’s only DhX...”

It’s just a coffee. Just a snack. Just a little something extra at checkout. But those “just” purchases add up fast.

At first, it’s “only Dh5.” Then, as your income grows, it turns into “only Dh50.” Before you know it, these small amounts are quietly chipping away at your financial goals.

A quick fix? Whenever you find yourself thinking “it’s only DhX,” pause and ask: What else could I do with this money? Seeing the bigger picture can help curb mindless spending.

Bottom line: Shift from rationalising to rational

Spending money isn’t the enemy—mindless spending is. The next time you’re about to make a purchase, take a moment to question your motives. By shifting from automatic rationalizations to mindful decision-making, you can take control of your finances and make your money work for you, not against you.