In response to worries about the future, many Americans are resorting to what’s termed “doom spending.” However, financial experts caution that this behavior can lead to significant monetary issues. According to Credit Karma, 27% of Americans exhibited doom spending habits prior to the election, with younger generations showing even higher tendencies. Courtney Alev, a consumer finance advocate at Credit Karma, mentioned, “When we feel stressed or anxious, it’s all too simple to ignore the situation, and the recent presidential election is contributing to this stress.” She pointed out that the ease of online shopping and targeted advertising can lead to rapid overspending.
Financial advisors urge caution with doom spending, as it can disrupt financial plans and increase debt levels. A representative from Northwestern Mutual remarked, “Impulse purchasing can easily lead someone into debt since they are straying from their financial plan.” The writer of Clever Girl Finance elaborated, stating that doom spending can unintentionally hurt your finances: “You might find yourself buying unnecessary items, which can then lead to feelings of buyer’s remorse or guilt.”
Using spending as an outlet for anxiety
When this behavior becomes a routine, it can create financial pressures, precisely what individuals are attempting to steer clear of.
To sidestep the doom spending cycle, experts advocate for taking breaks from social media, discovering uplifting activities like enjoying nature or spending time with friends and family, establishing a clear budget, and implementing measures to curb impulse purchases. Redirecting funds that might be spent into savings is also advisable.
One professional offered this advice: “Take a moment before you make a purchase. When the urge strikes to buy something, pause and consider if it’s a genuine need or merely a reaction to stress. Often, giving it a few hours can make a difference.”
While it’s acceptable to set aside some “fun money,” doom spending can quickly escalate, particularly as the holiday season nears.
Practicing mindfulness in spending and seeking healthier coping mechanisms for anxiety can help maintain financial well-being during these unpredictable periods.
