Can't Stop Buying Things You Don't Need? You Might Be 'Doom Spending'
I was reorganising my home office the other day when I found something I had totally forgotten I’d bought. It cost around £20 and was a nice little treat but I cared so little about it that I’d totally forgotten I had it.
While £20 is no big deal in the grand scheme of things, I’d be lying if I said my online shopping hasn’t been out of hand from around 2020 when there was, uh, very little else to do but stay home and shop.
That being said, I know I’m not alone. My friends and I joke about how much money we’ve wasted on ASOS and we are all actively trying to get into the habits of doing clothes swaps together rather than spending even more money.
I wanted to understand what causes us to buy things we don’t need, especially online, and how we can stop.
HuffPost UK spoke with Adrian Murphy, CEO of Murphy Wealth, who said that this is actually a phenomenon called “Doom Spending.”
What is Doom Spending?
Murphy explained: ”‘Doom Spending’ is the financial equivalent of ‘Doom Scrolling’. It’s when we feel anxious from the pressures of the world around us, so look for the instant gratification of shopping.”
He went on to share that our brain releases feel-good hormones when we buy something, so shopping is a tempting quick-fix response.
However, he warned: “It’s like putting a plaster on a broken leg – spending money compulsively will inevitably create further anxiety, rather than alleviating it, and lead to financial problems that can easily spiral out of control.
“What ‘Doom Spending’ boils down to is simple: a harmful behaviour pattern, and far from a quick-fix to those feelings of hopelessness.”
Murphy added that young people tend to be more susceptible to compulsive overspending, saying: “The proliferation of credit options such as 0% interest, or pay in three, make it easier than ever to make a purchase, and the ability to look further down the track when you’re that age can be tricky.
“There’s a risk that ‘Doom Spending’ can become ingrained behaviour, especially if you’re not used to spending less than you earn.”
Why does Doom Spending hit Gen Z the hardest?
Murphy explained: “Gen Z has faced a lot of challenges, from entering adulthood in the pandemic, to the cost-of-living crisis. It can feel as if the world has been designed to make earning and saving money difficult, and that creates an environment where habits like Doom Spending thrive.
“Compounded by the housing crisis in the UK, many young people feel they won’t ever be in a position to buy a home – so they may instead opt for the instant gratification of other products and purchases.”
Murphy went on to say that all of this is exacerbated by the addictive pressure of social media, where, “the next thing to buy is always being advertised.”
This certainly rings true. Even as somebody a little older than Gen Z, I have been pulled in by things in the TikTok shop or even ads on Instagram stories. It’s hard to resist!
So, how do we tackle Doom Spending?
Murphy said: “My advice for anyone struggling with this is to prioritise your long-term happiness and wellbeing, and begin saving. It’s not hopeless. Not saving is a habit you can break and putting money away and budgeting are all about forming new habits.
“Budgeting is a learned skill, and there’s no quick answer: it’s patience, investing your money, discipline, and thinking longer term. Your future self will thank you! Ask yourself three questions: what do I earn, what do I need to live, and what’s left?”
The expert explained that if you can take even a very small amount from what’s left and save it. you’re at the start of a savings journey and added: “If you put this into a savings account or a stocks and shares ISA, you can earn compound interest (where you make money on previously earned interest) which people underestimate the benefits of.”
Finally, Murphy advised: “Short term, spending money on something when you’re low might make you feel better for a moment, but I promise that feeling will be fleeting.
“More stuff does not make you more happy, and the thing that will give you the greatest satisfaction in life is a safety net of savings. It’s never too late to get started, and help is available.”
He also advised following these steps to get started:
Download a budgeting app on your phone
Delete any shopping apps on your phone
Try a ‘no or low’ spending challenge for a month to see how little you actually need to spend to be happy
