You’ve probably heard of “scrolling destiny,” but have you ever heard of “spending destiny”? This is an issue for many people. A recent study by Intuit Credit Karma found that 27% of Americans do this to cope with stress. Factors such as the rising cost of living, inflation, and lack of affordable housing are causing additional financial stress.
Are you spending beyond your means to cope with stress? Find out what you can do to stop overspending so you don’t continue to damage your finances.
Americans are worried about the economy
If you’re feeling uneasy about the economy, you’re not alone. The Intuit Credit Karma study showed that 96% of Americans are concerned about the current state of the economy. Of the study respondents who were concerned about the economy, these were their top concerns:
48% fear not having enough money to buy necessities such as food, clothes, and rent
34% are most worried about debt
30% worry about not spending money on things that bring them joy
How did Americans deal with these fears? More than a quarter is “destiny spending.” The study defined this as spending money, despite concerns about the economy and outside activities to cope with stress.
While spending money on things that make you happy may provide less stress in the beginning, overspending can lead to consequences that cause more anxiety — like debt.
How much is the loan? The same study found that the debt levels of about one-third of Americans have increased in the past six months. And 74% of debtors estimate they owe more than $10,000.
Don’t let your spending habits hurt your financial situation
If you find yourself overspending as a way to cope with the state of the world, you’re not alone. But it’s important to consider how your spending habits affect your finances. If you find yourself making unnecessary purchases more often, this can quickly become a problem.
The last thing you want to do is rack up expensive credit card debt. Credit card interest is expensive, so carrying a balance on your cards is not recommended. You should only charge your credit cards for what you can afford and then pay off your balance each month.
The following tips may help you curb your overspending:
Track your spending: Budgeting apps make it easy to set spending limits and track your spending. These tools can help you stay on track and become more aware of your financial situation, so you can change how you manage your money.
Set up roadblocks to limit online shopping: For those who have trouble with online shopping, making the checkout process more complicated can help limit shopping sprees. Consider deleting shopping apps from your phone and don’t save your credit card details on your online shopping accounts.
Pay with cash: Credit cards are convenient, but if you struggle with overspending, you may want to keep your cards somewhere safe to prevent you from using them. By using cash to pay for your everyday purchases instead, you’ll have more control and a better idea of how much money you’re spending.
Invest in your well-being: It can be worthwhile to invest in products and services that allow you to relieve your stress in a healthier way, so there is less temptation to overspend when life is down. Ideas include therapy sessions, a gym membership, or a hobby that helps you relax.
Keep these tips in mind to help keep your spending in check. If you want to improve your finances in the new year, you can also check out our personal finance resources.
Alert: the highest cash back card we found today has a 0% intro APR until 2025
If you use the wrong credit or debit card, it could cost you a lot. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow no annual fee.
In fact, this card is so good that our experts use it personally. Click here to read our full review for free and apply in just 2 minutes.
Read our free review
We are firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been reviewed, approved, or endorsed by advertising partners. Ascent does not cover all market offerings. Editorial content from The Ascent is separate from The Motley Fool’s editorial content and is created by a different analyst team. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Intuit. The Motley Fool has a disclosure policy.
27% of Americans ‘Doom Spend’ to Cope with Stress. Here’s What To Do If You’re Overspending To Beat Anxiety was originally published by The Motley Fool
#Americans #Doom #Spend #Cope #Stress #Heres #Youre #Overspending #Ease #Anxiety
Image Source : finance.yahoo.com