top of page
Writer's pictureInsightTrendsWorld

Insight of the Day: Are U.S. consumers spending more and saving less?

"Doom spending" refers to a phenomenon where consumers spend more money despite concerns about the economy and foreign affairs, often as a way to cope with stress. This behavior has become more prevalent during the COVID-19 pandemic, with people splurging on purchases even when they have worries about the state of the economy.

Here are some reasons behind doom spending and tips to avoid it:

1. Psychological Impact of COVID-19: The pandemic has left many people feeling psychologically empty, leading them to seek comfort in spending money on things they missed during lockdowns, such as human interaction, socializing, and travel.

2. Sense of Empowerment: Purchasing high-ticket items can serve as a status symbol and create a sense of empowerment, even if it's not necessary. Using pay-later systems or credit card debt may seem psychologically beneficial in today's society.

3. Appeal of Shopping: Buying things triggers the release of feel-good hormones like dopamine and endorphins, providing a temporary boost in mood. Shopping can be a way to self-soothe, especially during stressful times.

To avoid doom spending, consider the following strategies:

- Keep a Spending Journal: Track your expenses to become more aware of where your money is going and identify areas where you can cut back.

- Set Boundaries with Technology: Limit your exposure to social media and online shopping platforms, which can encourage impulse buying. Consider using apps or features that block access to shopping websites during certain times.

- Engage in Free Activities: Create a list of activities that are psychologically beneficial and free, such as spending time outdoors, exercising, or practicing mindfulness. These "decoy activities" can help distract you from the urge to spend money unnecessarily.

- Start Saving: Even if it's a small amount, start putting money aside regularly into a savings account. Having a financial cushion can reduce the temptation to overspend in times of stress.

- Community Engagement: Focus on building relationships and participating in community activities that don't revolve around spending money. Connecting with others can provide emotional support and fulfillment without the need for excessive spending.

4 views0 comments

Comentários


bottom of page