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This Dangerous Money Habit Is Becoming More Common. Don’t Be Tempted.

“Funflation.” “Money dysmorphia.” “Lifestyle creep.” There are many catchy terms to describe common trends and habits in the personal finance sphere.
One that has come up frequently around the 2024 presidential election is “doom spending.” It’s an understandably tempting phenomenon, but the negative effects outweigh the short-term relief.
Below, personal finance experts break down what doom spending means, why it happens and how to keep this impulse at bay.
“Doom spending describes the impulse to spend money on things to self-soothe against anxiety and stress,” Kimberly Palmer, a personal finance expert at NerdWallet, told HuffPost. “For example, if we are really stressed out about the election, we might splurge on takeout, new clothes and a plane ticket for vacation just to help boost our mood.”
Basically, doom spending is a form of retail therapy that occurs when people feel particularly uneasy and pessimistic about the state of the world.
“It’s all too easy to bury our heads in the sand when we feel anxious or stressed, and the recent presidential election is having that effect on people,” said Credit Karma consumer financial advocate Courtney Alev.
She pointed to a recent survey from Credit Karma that found 27% of Americans were doom spending in the lead-up to the election, with that number climbing to 37% for Gen Z-ers and 39% for millennials. Feelings of uncertainty, anxiety and depression are often driving forces.
“We know from our study that many Americans spend money as a coping mechanism when they’re feeling emotionally charged,” Alev said, adding that people search for a dopamine hit, distraction and sense of control in overwhelming times.
“When life gets stressful, spending can feel like a tiny burst of control or comfort that makes you feel better,” said Bola Sokunbi, the author of “Clever Girl Finance, Expanded & Updated: Ditch Debt, Save Money and Build Real Wealth.”
“Plus, shopping online makes it so easy,” she added. “You’re just one click away from a positive boost, and with ads popping up everywhere, it’s hard to resist. People get sucked into it because it’s a quick and easy way to feel something other than stress ― even if that feeling doesn’t last long.”
“Doom spending can have both a short- and long-term impact on financial goals,” said Hanna Grichanik, a financial advisor at Northwestern Mutual. “It’s very easy for someone to fall into debt when impulse buying because they’re deviating from their budget.”
The proliferation of platforms and influencers dedicated to promoting products to earn an income enables our worst spending instincts, especially when these kinds of posts appear alongside negative news and musings about current events.
“Many people are chronically online and on social media, ingesting content that may be heightening these feelings,” Alev explained, noting that they’re also being targeted by personalized ads and instant access to online shopping marketplaces that make it easy to overspend very quickly.
She added that doom spending is particularly concerning for young Americans who are already experiencing debt growth at faster rates than other generations.
Another issue with doom spending is that it can quickly become a self-perpetuating cycle.
“You end up buying stuff you might not need, and then there’s the potential for buyer’s remorse or feeling guilty,” Sokunbi said. “Plus, if it becomes a habit, it can lead to financial stress, which is exactly what you were trying to avoid in the first place. It’s basically a vicious cycle ― feeling anxious, spending to feel better, feeling anxious about spending … and around it goes.
“As we near the go-to time for holiday shopping with Black Friday right around the corner, the urge to spend could grow even further,” Alev said. “I urge those who are feeling the urge to spend money right now to go on a temporary social media diet until they feel like they’re more in control of their emotions and temptations.”
Taking a break from social media can be great for your bank account and your mental health. At the same time, seek out additional forms of self-care and outlets for your emotions.
“You’d be surprised how a cozy night in with some popcorn can give you those same feel-good vibes,” Sokunbi said.
Replace online shopping with streaming a good show, starting a new hobby or spending time with loved ones.
“Instead of doom spending, find other ways to get that much-needed pick-me-up,” Palmer echoed. “You could meet a friend for coffee or a walk, get outside and in nature, or call a family member. Reconnecting with other people and with nature without spending money can all be ways to give yourself a low-cost mood boost.”
She recommended setting a clear budget and endorsed the 50/30/20 approach ― putting 50% of your take-home pay toward needs, 30% toward wants and 20% toward debt payments and savings.
“You might not adhere to those guidelines perfectly, but it can be a helpful ballpark that leaves room for some ‘fun’ spending,” Palmer said. “It can also be helpful to give yourself a savings goal that you are excited about, such as building up an emergency fund or saving for a future vacation. That can help provide motivation to put money away for the future instead of spending it now.”
Grichanik emphasized the importance of setting specific and measurable financial goals within a feasible timeframe. Consider putting the money you almost spent on an impulse purchase into a high-yield savings account or Roth IRA.
“Another way to avoid overspending is by creating roadblocks to make it more difficult to make an impulse purchase,” she said. “An example of this is removing saved credit card information from your browsers or Apple wallets to ensure there is a barrier to purchase.”
Reduce the temptation to overspend by deleting shopping apps and unsubscribing from promotional emails.
“Pause before you spend,” Sokunbi advised. “When you feel like buying something, pause and ask if you really need it or if it’s just stress talking. Sometimes just waiting a few hours helps.”
You don’t have to fully disengage from fun or frivolous spending, however. Set aside a specific amount of money for a little splurge each month, or find ways to treat yourself with points.
“When you are craving a little retail therapy, redeem your rewards from your credit card, gift cards or loyalty programs to help offset some of the costs,” Grichanik suggested. “This small hack can allow you to continue to find ways to save but allow you to enjoy something you have been craving.”
And if you accidentally fall into the trap of doom spending, don’t be too hard on yourself.
“The key is to be aware when it happens and figure out other ways to feel better without spending money,” Sokunbi said. “It’s all about balance.”

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