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Doom Spending: What It Is and How to Stop

Choncé Maddox • October 16, 2024

Let’s be real: adulting can get overwhelming at times. Bills are due, rent and mortgage rates have been going up, and many of us have had to do a double-take at our grocery receipts. Sometimes, dealing with economic uncertainty can make people spend even more. Enter doom spending.

Ever caught yourself buying something you didn’t need just because life felt a little… meh? Let’s break down why we doom spend and, more importantly, how to stop.

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What is doom spending?

“Doom spending” happens when the world feels like it’s on fire, and instead of holding tight to your money, you think, “Forget it, I might as well spend now while I still can.” Some triggers of doom spending can be life events that affect your finances or economic factors like inflation, housing shortages, and student debt.

Doom spending is like retail therapy with a side of existential dread. Instead of planning for that future, you move to a “live for today” mentality. Because who knows what tomorrow will bring, right?

Millennials and Gen Z seem to be doom spending the most. Studies reveal that younger generations are spending more based on their bleak economic outlook.¹ That quick hit of dopamine from buying a new pair of shoes fades, but the dent in your bank account? That sticks around.

Doom spending is like retail therapy with a side of existential dread.

How to avoid doom spending

You have the power to fight against doom spending. These three tips can help you avoid doom spending and put your money to better use.

1. Repurpose your money toward a fun and meaningful goal

Start looking at the glass as half full vs. half empty and shift your focus to a financial goal that excites you. Maybe it’s a vacation you’ve been dreaming of or finally paying off your credit card debt. Whatever it is, make that goal front and center in your mind.

This could mean writing down how much you want to save and how much you plan to put toward your savings goal each month. Track your progress regularly and you can even set up automatic savings transfers to make sure you meet your target.

2. Pay yourself first (even if it’s a tiny amount)

When you hear “pay yourself first,” you might think it means setting aside half your paycheck for savings – and that’s way too much when rent and groceries are taking a huge chunk.

Just start with something small. Even 3% of your paycheck is a win. It’s all about creating the habit of saving, not being perfect from day one. Over time, it adds up, and you’ll feel accomplished seeing your savings grow instead of making impulse purchases.

3. Switch to a conscious spending approach

Conscious spending is all about being the boss of your own money and spending with intention on what truly matters to you. Think of it as budgeting with a fun twist. It’s not about pinching pennies or depriving yourself, but rather choosing to spend on the things that truly bring you joy and skipping the stuff that leaves you wondering, Why did I buy that again?

Conscious spending involves tracking your money, whether it’s fixed costs, savings, or investments, so you can prioritize your goals while also acknowledging fun and intentional splurges.

If experiences with friends and family are what light you up, then maybe skip the extra takeout during the week and plan a backyard barbecue over the weekend with games and your loved ones.

By taking this approach, you’ll become clearer on your values and be able to spend intentionally without added guilt or shame.

4. Talk to someone about your financial concerns

Talking to someone you can trust about what you’re going through can be a game-changer.

Whether you confide in a friend, join a supportive community, or seek advice from a financial advisor, expressing your worries openly can help you feel more in control.

4 ways to avoid doom spending: Repurpose your money toward a meaningful goal, pay yourself first, switch to a conscious spending approach, talk to someone about your financial concerns.

Free yourself from doom spending for good

Doom spending can happen to any of us, especially when the world feels a little unpredictable. Doomsday probably isn’t around the corner, but that doesn’t mean your financial stress isn’t real (it totally is).

Economic stress doesn’t have to last forever. The money you save now could turn into a dream vacation, a debt-free life, or just peace of mind knowing you’re prepared for whatever life throws your way.

So next time you’re tempted to doom spend, ask yourself: Do I want this, or do I want something better?

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