Some individuals claim that around 25% of Americans engage in “doom spending” as a way to cope with stress. I’m uncertain about this statistic. People often turn to food, sleep, alcohol, or shopping as forms of self-soothing. I’m certainly relieved that we don’t have to label it “doom eating,” “doom drinking,” or “doom sleeping.” We members of Gen Z and the Millennials truly don’t need an additional “doom” mindset thrust upon us by the media—thank you very much!
Nonetheless, financial advisors caution that habitual shopping sprees, referred to as “doom spending,” won’t offer long-term benefits.
This spending phenomenon is fueled by shared anxiety, which many believe can only be alleviated through shopping. An October survey showed that more than 25% of Americans are involved in doom spending, driven by worries about inflation, living expenses, global affairs, and the upcoming elections. Younger individuals are especially vulnerable, with 37% of Gen Z and 39% of Millennials admitting to this conduct.
This pattern is concerning. A third of Americans do not possess short-term savings, while 38% of Gen Z and Millennials feel that accumulating financial wealth has become tougher than it was for their parents, thanks to the current economic climate. I mean, really—39% of how many? Ten people? Surely, we can think better than that!
Here are some expert recommendations for reducing doom spending: Set Boundaries. Hanna Grichanik, a personal finance advisor, points out that cutting out all personal spending during stressful moments isn’t a feasible approach.
Instead, she proposes using rewards, points, or coupons to alleviate expenses. A controlled shopping experience on sale can make the activity more enjoyable while fostering long-term financial wellness. “This simple trick can help you discover saving opportunities while still indulging in something you desire,” Grichanik explains. Establish Tangible Financial Objectives.
Managing Financial Anxiety
Financial matters continue to be a significant source of stress for Americans. Cultivating practical, financially sound habits and saving—even in small amounts—can yield positive results.
Angela Fontes, vice president of policy and research at Financial Health Network, advises saving $10 each week. “Changes don’t happen immediately, but with dedication and specific goals, it can be very effective,” Grichanik adds. Seeking assistance to place funds in high-yield savings accounts or investing in a Roth IRA or 401K can also facilitate spending management.
Impose Obstacles to Spending
Grichanik suggests taking measures to complicate the ability to spend. For instance, erase saved credit card details from your browsers or digital wallets to create a purchase obstacle,” she advises. Utilize Anti-Stress Resources.
Having a roster of stress-relief methods that don’t incur costs can be beneficial.
Engaging with friends, calming your nervous system through meditation or physical activity, and taking part in free local events like volunteering can alleviate stress and increase overall happiness. Although shopping can provide temporary relief, moderation is essential. Relying on a variety of healthy coping mechanisms can reduce stress without damaging your budget.
