You’re Probably Doom Spending: 6 Ways To Break The Cycle In 2024

Last Updated on June 25, 2024 by John Cirelly

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Many Gen Z and millennials find themselves doom spending, buying things they don’t have money for since the thought of saving any money feels hopelessly out of reach.

Below, I’ll break down what doom spending is, why it’s happening, and how you can get off the dopamine hampster wheel to start saving for the future you deserve.

Key Takeaways

• 27% of Americans report “doom spend” to feel short-term stress relief.
• Long-term doom spending can devastate your savings, especially for GenZ.
• Breaking the cycle takes work, but isn’t impossible.

What is Doom Spending?

Doom spending refers to buying things impulsively as a way to deal with stress and anxiety about the economy and global issues. It’s similar to “doom scrolling,” where people endlessly scroll through social media for distraction.

The trend took off in 2024 as people found themselves spending despite growing financial worries. Instead of easing stress, it often creates more by adding to debt and reducing savings.

Why Are Americans Doom Spending?

27% of Americans use doom spending to cope with economic uncertainty, inflation, and the rising cost of living. Younger generations, especially millennials and Gen Z, are most likely to spend this way due to increased societal pressures and a desire to keep up with their peers.

The habit provides short-term relief from financial fears but often leads to long-term anxiety and guilt. Psychological factors like status-seeking and societal influence contribute to the urge to buy items that may not be necessary.

How to Stop Doom Spending

1. Pay Yourself First

Prioritize your savings by setting aside money for an emergency fund or other goals before covering non-essential expenses. Automating transfers to a savings account ensures you’re consistently building a financial cushion.

Tip: If you feel you lack discipline in paying yourself first, consider moving the money to an account you cannot easily withdraw from.

2. Set Reachable Financial Goals

Define specific financial goals like paying off debt or saving for a trip. When you’re focused on these targets, you’re more likely to reconsider impulse purchases that can derail your progress. Review your goals regularly to keep them fresh in your mind.

Tip: Pick small, realistic goals to start. Maybe it’s an extra $200 in your savings. Smaller goals will help you feel accomplished once you achieve them.

3. Use Cash Over Cards

Paying with cash instead of credit or debit cards limits your spending to what you physically have. This makes you think twice about each purchase, as you can see the money leaving your hands. It also helps you avoid racking up debt on impulse buys.

Tip: While some credit cards can actually earn you money through cashback and sign-up offers, they can be the worst kind of debt for those struggling financially.

5. Remove Stored Card And Cancel Subscriptions

Deleting stored card information from shopping websites reduces the temptation of one-click buying. The extra step required to enter your card details will make you pause before making a purchase.

Tip: It can be daunting to cancel all your subscriptions manually. Consider doing a few a day, or sign up for an app like Rocket Money.

6. Establish a Waiting Period

Implement a waiting period of 24 to 48 hours before making non-essential purchases. This rule prevents impulse buying by giving you time to reflect on whether you genuinely need the item or if it’s just a reaction to temporary stress.

Tip: Many times, we’ll find ourselves wanting to make that impulse purchase based on emotions. By giving the purchase some time, you might feel differently and avoid spending your money.

My Final Thoughts

Doom spending has become a way for many Americans to handle stress about the economy and global events.

It might feel good at the moment, but in the long run, it can hurt your finances by adding to your debt and shrinking your savings.

You can get control by sticking to a budget, using cash instead of cards, and putting money into your savings first.

These steps will help you feel better about your financial situation and give you peace of mind. It’s all about making small changes for a better future.