Why Does Financial Stress Make You Want To Spend More? Here Are 7 Tips To Stop

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A recent study shared by Intuit Credit Karma revealed that 60% of Americans were concerned about the overall state of the world and the economy, with 27% admitting to turning to “doom spending” to handle stress. With concerns like the cost of living and inflation at the top of the list, these overall feelings of uncertainty can negatively impact one’s mental health, leading to unhealthy coping mechanisms. With 63% of respondents stating that the current state is giving them feelings of anxiety about their finances, many are spending more money to manage this.

The concept of “doom spending” is about spending money despite having fears about the economy and global affairs. Research from Psychology Today states that “doom spending” occurs when you spend money to try to handle the stress from factors like the economy and your financial situation. 

Here are seven tips to help you stop “doom spending” to gain control of your finances. 

Remember That Spending Money You Don’t Have Creates More Problems

“Doom spending can give some people a brief high, causing some to overspend to feel better,” said Liz Hunter, seasoned personal finance expert and director at Money Expert. “This type of impulsive spending not only damages bank accounts, which could impact whether people can pay bills, but it also results in intense feelings of guilt, shame and annoyance and exacerbates any existing mental health conditions.” 

While spending money could help you feel better in the moment, you’ll likely become more anxious or stressed about checking your bank account, which could lead to you spiraling into debt. You want to do your best to constantly remind yourself that spending money could cause additional problems. This brings us to the next point.

Slow Down Financial Decisions

“Slowing down financial decision-making could help those struggling with their mental health and the way they manage their money by giving them the chance to think about whether they really want or need what they’re about to spend their money on,” Hunter said.

One of the best ways to slow down or delay a financial decision is to set a time limit of 24 hours to think about the purchase.

“This cooling-off period helps break the immediate emotional connection to buying and allows for more rational decision-making,” said Gwyneth Borden, personal finance expert and founder of Remynt. You want to give yourself a buffer before spending money so that you have time to review this purchase in your mind.

Make Your Credit Cards Harder To Access 

Hunter pointed out how spending money is easier now than ever with the growth of online shopping. If you notice that you can’t control your spending, you’ll want to start by making it harder to access your credit cards so that making purchases isn’t so convenient. You’ll also want to stop saving credit card details with online merchants and consider leaving your credit card at home when you go out. 

Turn Notifications Off and Unfollow Certain Accounts

Shopping apps and some brand social media accounts can send out notifications to customers to entice them to spend money. The experts agreed that these notifications could cause impulse or “doom spending.”

“Deleting these apps completely could help reduce overspending, but turning these notifications off can be an alternative if you don’t want to remove them completely,” Hunter explain. These notifications can come when you’re feeling stressed, which could lead to you spending more money at the moment.

“Unfollow social media accounts that trigger comparison spending or create feelings of FOMO,” Borden said. “Focus on your own financial goals rather than keeping up with others’ spending habits.” If you find that social media creates unnecessary stress, you may also want to think about taking a break from it. 

Understand Triggers

Hunter suggested that you try understanding triggers to know what to watch out for to prevent this spending. “It could be worth checking back through bank statements from the past three months and highlighting all unplanned and impulsive spending,” she added. “Consider some of the feelings that could have caused this spending to begin understanding your triggers.”

Triggers to spend money could come from watching the news too closely, mindlessly scrolling before bed or following negative accounts that are only making you feel more overwhelmed. You’ll want to do your best to understand these triggers so that you can work on removing them. 

Develop Alternative Coping Mechanisms

“Instead of using shopping to deal with stress or anxiety, try activities like exercise, meditation or talking with friends,” Borden said. Spending money is just one of the many ways one tries to cope with a stressful situation, so it’s important to explore other options to see if you can turn to a more positive activity to handle the uncertainty. 

“Scrolling social media, watching the news or reading the paper can all be major triggers for “doom spending.” Pay attention to what you’re doing when the emotional response strikes and redirect your energy,” explained Rachel Caballero, community development and public relations manager at TruWest Credit Union.

Caballero said activities like meditation, journaling, deep breathing exercises and taking walks can help promote relaxation and reduce stress so that you don’t turn to spending money to feel better.

Get Involved With Causes You Care About

Caballero pointed out that “doom spending” occurs when someone is stressed about politics, the economy or the future. She believes this is an excellent opportunity to identify which issues you’re having trouble with so that you can get involved with non-profits and advocacy groups that strive to improve these issues so that you feel like you have some control over the situation instead of turning to spending.

“Turning your stress and fear into action and being a part of the solution is a great way to channel it into something positive,” Caballero added.

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