You usually associate the word addiction with drugs, alcohol or gambling. But it’s possible to become addicted to money. When you start using money to deal with your problems or become dependent upon it to get your thrills, then you have a problem. At that point, it doesn’t take long for things to get out of control, and the consequences can be devastating.
A money addiction is a type of “process addiction” in which an individual engages in a compulsive behavior even though it results in negative consequences. It’s important to understand that a money addiction and a spending addiction aren’t the same issue.
A person with a money addiction prioritizes hoarding their money over important life activities such as their personal relationships and their own health. They’re afraid that they’ll never have enough money. A person with a spending addiction, on the other hand, has little impulse control over their purchasing behaviors.
Individuals who are addicted to money have all-consuming thoughts about it and as a consequence, their behaviors revolve around how they’re going to get it. A money addict’s self-worth is often tied to how much they have in the bank.
Many people who struggle with money addiction engage in some type of risky behavior such as gambling, playing the stock market or buying commodities in order to make a huge financial return on their money.
You can Still Build Wealth without the Addiction
If you have a money addiction, you may forgo spending money on yourself even though you’re financially stable and have the assets to do so. This behavior stems from an irrational fear of never having enough cash. For example, a money addict may struggle with making the decision to buy life-sustaining medication vs hoarding that money away. The addict’s life revolves around an obsession with money and constantly worrying about financial resources.
Another sign of a money addiction is isolation and depression. Socializing with family and friends often involves spending money. Therefore, the money addict will isolate themselves, becoming more and more reclusive. This can result in a deep depression that just increases isolation; it becomes a vicious cycle.
If you’re basing your happiness on seeing how big your bank account can grow with no real purpose for those assets, then you may have a money addiction that needs to be treated. However, if you view money as a resource that you manage and use for the benefit of yourself, your family, and others, both now and in the future, then you’re in good shape.
Keep the Money and Your Sanity
Creating a plan built around your life goals and looking at money as a resource to achieve those goals is a healthy option. The Jeffrey M. Verdon Law Group offers clients comprehensive estate planning along with asset and lifestyle protection planning and risk management to help you achieve your financial goals, both now and in the future.
If you’re looking for estate planning attorneys in San Diego, contact our office. Our firm welcomes prospective clients from Orange County, throughout Southern California and in Silicon Valley.