Two-thirds of Americans say the economy gives them anxiety. 🥴 Cost of living has increased by almost 21% since 2020. It’s no wonder why we’re looking for something to ease the pain! 🧘
Some people hit the bar. 🍻 Others engage in a little phenomenon called “doom spending.” 🛒 If you’re trapped in this new trend, don’t worry. There are ways out. 👇
Here’s Five Fast Facts on doom spending:
- 🍨 Treat Yo’self (Carefully) - They don’t call it retail therapy for nothin’! In a 2023 study, researchers coined the term “doom spending" for what happens when people spend money to relieve stress. It seems backwards, but people doom spend to cope with the anxiety of not having enough to pay bills and/or save. The study revealed that 27% of Americans doom spend, including 35% of Gen Zers and 43% of millennials.
- 🎭 Getting Emotional - Doom spending can be tempting, but there are ways to prevent it. One of the most important things to do is address the underlying stressful emotions that cause you to spend when you shouldn’t. When you figure out why you do the things you do, it’s much easier to fix the problem and develop healthier ways to cope.
- 📊 Budget Basics - If you don't already have a budget, putting one in place could be a game changer. If you’re not a spreadsheet nerd, consider using the 50/30/20 rule. That’s where 50% of your income goes to essentials and bills (things you need), 30% to discretionary expenses (things you want), and 20% to your savings goals.
- 🤸 Fun for Free - To scratch your shopping itch, look for free or low-cost things to do and buy instead. Addicted to buying books on Amazon? Get your fix at the local library. Instead of spending on pricey dinners and nights out, opt for picnics in the local park or playing games and cooking at home.
- ✅ Set It and Forget It - If you have anxiety around paying your bills, automate payments so it’s one less thing on your list. To boost your savings, create an automatic transfer of a certain amount each payday. You won’t even miss it and things add up pretty quick!
🔥Bottom line: Hey, we get it. We all have to take the edge off somehow in this economy. However, don’t burn through those hard earned paychecks on stuff you’ll regret. Looking for a job? Don’t let all that bad advice go to your head. Check out our tips on how to keep it all straight.
Are you a doom spender?
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