10 Sep
Doomspending: Why Young People Are Spending Money to Cope with Uncertain Futures
Did you know that 43 per cent of millennials and 35 per cent of Gen Z are now doomspending?
What is Doomspending?
Have you ever found yourself buying something you don’t need to feel a bit better? That’s what doomspending is all about.
Imagine you’re scrolling through social media, feeling overwhelmed by everything. And you see an ad for the latest trendy item. You know it’s not something you need, but in that moment, purchasing it feels like a quick way to escape your worries.
This is doomspending. It’s becoming more common, especially among millennials and Gen Z.
Why Are People Doomspending?
The world can feel pretty overwhelming right now. From riots and world conflicts to the cost of living- it’s no wonder that people are looking for ways to cope.
Doomspending is retail therapy for a new generation. It is driven by the stress and anxiety about the future. Yet, doomspending often means buying more expensive or luxurious items. Instead of just buying something small to feel good.
These purchases give a temporary sense of control or comfort in a world that feels uncertain.
One reason for this trend is that traditional milestones, like buying a home, feel out of reach. Housing prices are skyrocketing, and student loan debt is high. Saving for big goals can seem impossible. So, some people spend their money on things that bring quick satisfaction instead.
It’s a way of saying, “If I can’t have the big things, I’ll at least enjoy the little things.”
The Role of Social Media and TikTok
Doomspending has gained even more attention thanks to social media, particularly TikTok. The platform is filled with videos where users share their experiences of doomspending. Whether they’re showing off a new purchase or discussing the pressure to spend.
The hashtag #TikTokMadeMeBuyIt has millions of videos. Showcasing how influential social media can be in encouraging this behaviour.
TikTok isn’t just a place where people talk about doomspending; it’s also where the trend has gone viral.
Videos like those from TikTok user Maria Melchor (@firstgenliving) have sparked many conversations. Such as, why young people spend money on things that might seem frivolous. Especially during tough financial times.
@firstgenliving Can you blame me for not being eager to turn my place of living into a commodity?
These videos often highlight a level of frustration. Especially for young people not being able to afford long-term investments. Such as owning your own home. This can lead to a mindset of “If I can’t invest in my future, I might as well enjoy my present.“
The Psychology Behind Doomspending
Doomspending is closely related to the concept of ‘instant gratification’. When you buy something new, your brain releases chemicals like dopamine. Dopamine makes you feel good, at least temporarily. This is why shopping can be so addictive—it’s a quick and easy way to boost your mood when you’re feeling down.
Yet, this temporary high doesn’t last. In fact, it can lead to a cycle where you keep buying more and more, trying to chase that initial feeling of happiness. Over time, this can lead to financial problems. Especially if you’re spending money you don’t really have, such as through buy now, pay later schemes.
Another psychological factor at play is the feeling of control. When the world around you feels chaotic, buying something can give you a sense of power, even if it’s just for a moment. It’s a way of taking action in a situation where you might otherwise feel helpless. But, this sense of control is an illusion, as it often leads to more stress and regret later on.
How to Break the Doomspending Habit
Breaking the cycle of doomspending isn’t easy, but it’s possible with a few changes you can make to your life.
One helpful approach is to keep a spending diary. Try writing down what you buy, why you bought it, and how you felt before and after the purchase. You can then start to recognise patterns in your behaviour. This self-awareness can help you make more mindful decisions in the future.
Another tip is to set boundaries with your phone. Social media can trigger doomspending. Try limiting your exposure to ads and influencers who push constant buying. Instead, follow content that inspires you in other ways, like creative projects or wellness tips.
Find other ways to boost your mood that don’t involve spending money. Activities like walking, yoga, or calling a friend can help without costing anything. Engaging in altruistic [doing something good for others without expecting anything in return] activities, such as volunteering or helping others, can also create lasting happiness, unlike the short-lived pleasure of a new purchase.
Also, if you are concerned about finding the balance of saving/paying off debts, whilst also enjoying your life, watch the below video. Steven from ID4L was a guest on Pocket Perspectives Podcast, and he shared a smart money-saving strategy! “If you want to buy something, make sure you have twice the amount.”
@iehub Steven from ID4L shares a smart money-saving strategy! “If you want to buy something, make sure you have twice the amount.” This 23-year-old owns property by saving an equal amount whenever she spends! 🏡 🌱 Start today: “The best time to plant a tree is 20 years ago, the second best time is today.” 🌳 Listen to the full episode! 🎧 Link in bio. FinancialFreedom SavingsTips MoneyManagement YoungInvestors PropertyLadder SmartSpending FinancialResilience MoneyGoals Podcast LinkInBio
Take Control of Your Finances with IE Hub
Doomspending might offer a quick escape, but it often leads to more financial stress. IE Hub can help you avoid this.
IE Hub shows you a clear picture of your income, expenses, and debts. This helps you make smarter decisions that support your long-term goals.
You can regularly update your budget and track your spending through IE Hub. So, you can try to break free from the cycle of impulsive purchases. This way you can focus on building a more secure financial future.
Instead of turning to retail therapy to cope with difficult emotions, turn to IE Hub.
IE Hub’s Take on the Future of Doomspending
IE Hub is a tool that helps you manage your money. We think that doomspending might keep growing as long as the world stays uncertain and social media keeps influencing us.
But we are also of the hope that as more people learn about the dangers of doomspending, there will be a shift towards smarter spending and saving.
With the right tools and knowledge, younger generations can start focusing on long-term goals instead of quick fixes.
Doomspending: 5 Key Takeaways
- Doomspending Explained: It’s when you buy stuff to feel better when life feels tough.
- Why It Happens: People spend on small joys because big goals, like buying a house, can feel impossible.
- Social Media Influence: TikTok and other platforms make doomspending more common by showing off cool things to buy.
- The Psychology: Buying gives you a quick happy feeling, but it doesn’t last and can lead to more stress.
- How to Stop: Use tools like IE Hub to manage your money better. Avoid impulsive buys, and focus on long-term happiness.