Did you just spend uncontrollably on New Year's Eve and are filled with regret? There can't be a more unpleasant way to start the new year, isn't it? But neither are you alone nor is this impulse spending associated only with New Year's Eve. Debt due to 'doom spending' is a major issue that creeps silently and takes control over your wallet. The good news is that you can dodge it from sabotaging your financial health in 2025.
Decoding Doom Spending: A Damaging Way to Cope Against Pessimism
Doom spending isn't conscious spending. This impulsive buying behavior typically shown by Gen Z is a way to divert attention away from negative news that bombards the world daily. From election results, geopolitical tension, and rising house and grocery prices to a slowing economy, people need something to soothe their fears. This self-soothing takes an expensive path when it becomes doom spending.
Doom spending is intrinsically linked to feeling gratified at the present moment. This becomes evident in a recent report stating that for millennials and Gen Z'ers, treating themselves now rather than holding off for a future that can change at any moment is more appealing.
Most of this can be attributed to the COVID-19 pandemic, which struck the world with a slew of challenges. Doom spending or retail therapy, whatever you may call it, has become a way to ward off the mind when pessimism about the current state of the world hits.
What Other Factors Fuel Doom Spending?
One of the major causes of doom spending is the massive consumption of online content. When was the last time you scrolled through your social media feed? Chances are, just a few minutes ago. When you are 'chronically online,' it's bound to affect your buying decisions because you are seized by advertisements and exciting deals.
Besides, social media is full of influencers promoting something or the other. Combine it with modern payment methods like PayPal, Sezzle, and Amazon Pay, and there's nothing that can stop the pace of adding items to the cart and checking out.
Apart from social media, news channels are also to blame. Today, most shows exhibit political bias. Economic statistics is taking a backseat, and people are being fed stories that make them worried all the time. In such a case, it's easy to feel excessively gloomy about the economy.
Social isolation has also been linked to financially destructive behavior, one of which is doom spending. When you cannot participate in social activities because of fear of a health crisis, the need to seek gratification stings badly. You can also feel socially isolated if you're stuck in a high-paying but stressful job that leaves you with little time to check in with others.
Actionable Ways to Avoid Doom Spending
Doom spending is easy to combat once you understand yourself, your habits, and your emotions better. When you know these things, it becomes easier to pause before you spend and realize whether it will hurt your financial health in the long run.
Here are some ways to become mindful and turn doom spending into doom saving:
- Note down what makes you spend. Is it social media scrolling, news shows, a feeling of loneliness, or stress at work? Use this knowledge to avoid instances that can make you overspend.
- Explore your interests and make them alternatives to shopping. It can be exercising, reading, writing, dancing, listening to music, or even talking to a friend.
- If you feel very emotional when buying, tell yourself that the purchase can be done the next day. When the next day rolls, your emotions won't be as intense, making you realize that the purchase isn't worth it.
- Automate your savings, payments, and investments so that preserving your financial health does not feel like a chore.
These tips will help you curb doom spending and end 2025 on a positive note, with a sense of security and optimism about your financial well-being.
With inputs from agencies
Image Source: Multiple agencies
*The views expressed are personal to the author and do not reflect the platform's opinion of the same.
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Author’s Profile
Praggya Joshi is a seasoned content writer specializing in creative writing, long-form, and short-form social media content. She has worked in the B2B, SaaS, health, and IT spheres and carries a deep knowledge of building SEO-optimized and user-friendly content strategies. A poet at heart, she finds solace in weaving her thoughts and life experiences into free-flowing verses. Praggya is devoted to honing her craft and tries her best to move past her comfort zone and gain new skills.
