Doom Spending: My Take
Weirdly enough, I hadn’t come across the phrase “doom scrolling” until recently, thanks to a Bloomberg video about the U.S. economy. The video explored how Gen Z faces rising debt and costs, sometimes leading to “doom spending”, the habit of spending all your money because saving feels pointless due to all the other debts surrounding them.
But I don’t think doom spending is just a Gen Z issue. In the UK, years of rising living costs have left many people’s finances stretched thin. For some, saving feels almost impossible, especially when there’s barely anything left after bills essentials. House prices have also soared, leaving a lot of young first-time buyers unable to afford their first home without taking on a significantly high mortgage.
Now, I get it, retail therapy and treating yourself as a way to cope is very valid. Sometimes, those small treats can help us get through tough times. But I think there’s also a case to be made for focusing on paying off debts first, especially if you’re in a position to do so. Tackling manageable debt now can free up cash down the line, easing the stress of having to pay it back later. Everyone’s situation is different, of course, but if the loan is at a manageable level, addressing it early can be a big help.
It’s also worth mentioning that, even though the recent October 2024 Labour budget changes may not have directly affected working people, they could still impact us indirectly. With changes to business rates and increased national insurance contributions, companies may have to cut back on other areas to balance their budgets. This could mean reducing corporate benefits, lowering pay or bonuses, and even cutting jobs. Customers may also feel the impact if companies raise prices to make up for these extra costs, especially if the business is already under pressure to stay profitable by shareholders.
Saving Challenge: Little but Plenty
So, I decided to start a simple savings challenge. There’s a stereotype that Gen Z splurges on daily Starbucks, avocado toast, and streaming subscriptions. While I am Gen Z, I don’t go out for coffee every day; I usually drink it at home to save money. Honestly, with the current cost of living, many people can’t afford a daily coffee run.
I’m going to save the equivalent of one coffee a day, five days a week. At £3.40 per day, this adds up to £17 per week. By the end of the month, that’s about £68 tucked away just by skipping that coffee run and £884 per year. I think setting goals like this is important because they test my ability to make small sacrifices, which ultimately enhances my finances and helps build discipline. Sometimes, giving up small things now can lead to much better opportunities in the future and push me to keep putting in the effort.
Saving might feel tough with everything going on, but this small, simple step helps me build a habit and work toward more financial security, bit by bit. Doing all of this might mean paying off my mortgage years ahead and adapting my home into something more accessible like I’m doing over at BuildMyAccessibleHome!