You've probably heard of “doom scrolling,” but have you ever heard of “doom spending”? That's a problem for many people.Recent Intuit Credit Karma Investigation It turns out that 27% of Americans do this to cope with stress. Factors such as rising costs of living, inflation, and a lack of affordable housing are causing additional financial stress.
Are you spending more than you can to cope with anxiety? Think about what you can do to stop overspending so it doesn't continue to negatively impact your finances.
Americans are worried about the economy
If you're worried about the economy, you're not alone. A survey by Intuit Credit Karma found that 96% of Americans are concerned about the current state of the economy. Among survey respondents concerned about the economy, the top concerns are:
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48% worry about not having enough money to buy necessities like food, clothing, and rent
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34% are most concerned about getting into debt
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30% worry about not being able to spend money on fun things
How do Americans deal with these fears? More than a quarter are “catastrophic expenditures.” The study defines this as spending money to cope with stress, despite concerns about the economy or foreign affairs.
Spending money on things that make you happy can initially reduce stress, but overspending can lead to consequences that cause more anxiety, such as debt.
How much is the debt? The same survey found that about one-third of Americans' debt levels have increased in the past six months. He also estimates that 74% of people with debt owe more than $10,000.
Don’t let your spending habits worsen your financial situation
If you feel like you're overspending to deal with the world situation, you're not alone. However, it's important to consider how your spending habits affect your household finances. Problems can quickly arise if you start making unnecessary purchases too often.
The last thing you want to do is accumulate expensive items. credit card debt. credit card interest We do not recommend carrying a balance on your card due to the costs involved. You should only charge the amount you can afford to your credit card and pay the balance every month.
The following tips will help you curb your overspending.
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Monitor your spending. budgeting app Easily set spending limits and monitor spending. These tools can help you stay on track, gain greater awareness of your finances, and change the way you manage your money.
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Set up roadblocks to restrict online shopping. For people who have trouble shopping online, making the checkout process more complicated can limit their purchases. Consider deleting shopping apps from your phone and not saving credit card details to your online shopping account.
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pay by cash: credit card It's convenient, but if you're worried about overspending, it might be a good idea to hide your card in a safe place and avoid using it. Using cash to pay for everyday purchases gives you more control and gives you a better idea of how much money you're spending.
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Invest in your happiness: Investing in products and services that help you relieve stress in a healthier way will reduce the temptation to overspend when you're feeling down in life. Ideas may include therapy sessions, a gym membership, or a relaxing hobby.
To reduce your spending, keep these tips in mind. If you want to improve your finances in the new year, check these out too. personal financial resources.
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27% of Americans spend “catastrophically” to cope with stress.What to do if you spend too much money to relieve anxiety Originally published by The Motley Fool
