5 Ways to Avoid Doom Spending This Holiday Season and Beyond
Doom Spending Defined
Does this sound like you: You're scrolling through your phone, bombarded by negative news of economic uncertainty, climate disasters, and political chaos. Suddenly, that Balenciaga bag you've been eyeing feels less like a splurge and more like a life raft. Welcome to the world of "doom spending": the art of spending like there's no tomorrow because who knows if there will be?
According to a recent article on Today.com, 27% of Americans admit to doom spending, with the numbers even higher for millennials (43%) and Gen Z (35%). You’re stressed, you’re anxious, and you’re swiping your credit cards like there is no tomorrow.
This financial coping mechanism has become the millennial equivalent of sticking your head in the sand, except instead of sand, it is a mountain of online shopping bags and accumulating debt. It is the "treat yourself" mentality on steroids, fueled by emotion; a cocktail of anxiety, FOMO, and a dash of "we're all doomed anyway" fatalism. It is a millennial's way of giving the middle finger to an uncertain future.
But here's the problem: we all know this emotionally driven, retail therapy comes with a hefty price tag in the end. Let’s explore 5 savvy strategies to dodge the doom spending trap this holiday season to get your emotions back on track for today and tomorrow.
Face the Fear
Doom spending isn’t really about what you’re buying; it’s about what’s driving that impulse and emotion. Take a moment to reflect on what’s truly behind your spending habits. Are you feeling anxious about your future? Overwhelmed by career pressures or relationship uncertainties? Feeling powerless in a certain aspect of your life? By defining your fears and naming those emotions, you can address them more effectively. Journaling or discussing these feelings with a friend can provide clarity and help you find healthier outlets for your stress.
Budget Like a Boss
Let’s be honest: the word “budget” can strike fear into even the most seasoned spenders. Budgeting is essentially financial awareness and it’s critical for future financial success. Are you aware of your spending habits? Do you have a financial plan? If not, would you know where to start? Consider joining a community like Raising Rockefeller which offers access to budgeting tools and live support to help keep your emotions in check while guiding you toward financial wellness. Remember, without a plan, you will never get to where you want to go.
Find Free Joy
Rediscover the simple pleasures that don’t cost a dime. A leisurely walk in nature, diving into a good book from the library, or hosting a game night with friends can be just as fulfilling as any shopping spree and won’t leave you hopeless when that credit card statement arrives. Embrace these free activities as opportunities to connect with yourself and others without breaking the bank.
Practice Mindful Spending
Before you hit “purchase,” cultivate the habit of asking yourself some key questions:
“Why am I buying this?”
“Do I truly need it?”
“Am I seeking a temporary dopamine hit or is this something that genuinely adds value to my life?”
“How will I feel when I see this reflected on my credit card statement?”
Taking a moment for reflection can help curb impulsive purchases and ensure that your spending aligns with your true values and your bank account!
Meditate for Clarity
By now, we should all know the many benefits of meditation. In today’s online world where everyone’s life seems to be better than yours, it’s easy to get swept away by FOMO, stress, and anxiety. Incorporating meditation into your daily routine can provide much needed clarity and calmness. Even just five minutes of focused breathing or guided meditation can help center your thoughts and reduce impulsive urges to spend. Headspace or Calm offer free ways to get started. As you cultivate mindfulness, you'll find it easier to navigate emotional triggers without resorting to retail therapy.
Say Goodbye to Doom Spending
Overcoming a bad habit like doom spending is up to you. The next time you feel the urge to spend based on how you're feeling, whether it's to soothe stress, celebrate a win, or distract yourself from uncertainty, pause for a moment. Take a deep breath and ask yourself: "Why am I buying this?”. Whether or not you have a financial roadmap, ask yourself: "Was this part of the plan?".
By developing this habit of pausing before making a purchase, you’ll not only strengthen your financial discipline but also gain a deeper understanding of your emotional triggers. This shift in perspective can help you replace doom spending with intentional choices that align with your goals and values, ultimately putting you in control of your financial future and life.
Regardless of how you feel, life is full of uncertainties. Practicing awareness in all aspects of your life and developing a financial plan will help keep your emotions in check and put an end to doom spending. Start planning for the worst while maintaining hope for the best to live a happy, balanced life!
