Adulting can feel draining at times. From bills to pay and rising mortgage rates to the cost of living generally on an upward curve, it’s natural to feel overwhelmed with it all. As a result, some people cope with economic uncertainty in a different—and unhealthy—way: by spending even more. In other words, doom spending.
You’ve probably done it too, at some point. For instance, have you caught yourself buying something you didn’t really need just because life felt a bit messy and complicated? Well, you’re not alone. Doom spending occurs when the world feels like it’s going in all the wrong directions, and rather than holding tight to your money, you throw caution to the wind and think, “Oh, I might as well spend while I still can.”
Think of doom spending like retail therapy, but with an existential crisis. Rather than planning for the future, you take on a “live in the moment” mentality because the future is so uncertain. It’s not so hard to imagine that doom spending primarily affects millennials and Gen Z. To be honest, you can’t really blame Gen Z-ers for feeling all moody about their finances. Most of them entered the workforce during a pandemic, amid massive student debts and rising inflation rates. So, some of them end up indulging in doom spending by buying things on impulse just as a way of coping with anxiety.
If this sounds familiar to you, you’re not alone! However, remember that this quick dopamine hit can lead to long-term financial issues. Yes, those new pair of shiny shoes are great, but the novelty of them will wear off. And that dent in your wallet? That sticks around.
There are many causes for doom spending. For example, it can occur during times of crisis and economic uncertainty, when people may overspend to protect themselves against the potential adverse outcomes they may encounter in the future. Likewise, it becomes a coping mechanism for dealing with stress and emptiness. Social influence is also a key reason for excessive spending because people are constantly comparing their lives with those of others, which leads to a desire to spend more.
If you’re someone who falls under the category of doom spending, you need to take hold of your finances. Here are some practical tips that can help you avoid doom spending.
Put Your Money Towards More Meaningful Goals
Why not shift your focus towards a financial goal that actually excites you? This could finally help you pay off your credit card debt or save for a dream vacation. Create a list of how much you want to save and how you plan to allocate that amount to your savings goals each month. Make sure that you track your progress and automate savings transfers to meet your target.
Embrace a Conscious Spending Approach
Be the boss of your own finances and be intentional about how you spend it on things that genuinely matter to you. Think of it like budgeting, but with a fun twist. It’s not about depriving yourself; instead, it’s about choosing to spend on things that will bring you joy rather than spending on things that make you wonder, “Why did I buy that?”.
Being conscious about spending is about prioritizing your goals in a fun way. For example, if you enjoy spending time with your family, you can skip a few extra takeout meals for the week to plan a BBQ party with fun and games. Reframing your mindset and adopting this approach will enable you to be clear about your values and spend intentionally without guilt.
Make It Harder For Yourself To Spend Mindlessly
Here’s the thing: retailers have done a fantastic job of modernizing payment methods so shoppers literally part with their money with a single click. To counter this, give yourself the chance to think before swiping and making a purchase. Don’t save your card on e-commerce websites, and opt for in-store purchases with cash instead. When you pay cash, you see the money literally leave your hand, which prompts you to reconsider your purchases.
Change Your Social Media Habits
There is a strong correlation between doom spending and doomscrolling. Of course, staying updated about current events is very important, but consuming too much content on heavy and complex topics can demotivate you from planning for the future.
Make sure to unplug and engage in some activity offline, away from the screen’s glare. If you do use social media, interact with posts that make you feel good and help create a positive space on your feed.
Think Long Term
You can only achieve financial security when you focus on long-term results. While excessive spending is certainly not healthy, depriving yourself of spending altogether can be a shock to your system, and you may end up overcompensating by spending even more. Therefore, it’s also important to treat yourself occasionally. Then you’ll realize that it’s not all doom and gloom after all.
Final Thoughts
Remember, economic stress doesn’t have to last forever. When you are intentional about saving money, you’re actually setting yourself up for a debt-free life, building a dream home, or taking that vacation you’ve always wanted. So the next time you feel tempted to doom spend, ask yourself a fundamental question: Do I need this, or do I want something better for myself?
