Lately, social media has been buzzing about the phenomenon of doom spending, which has caught the attention of many. This habit is believed to make Gen Z and millennials increasingly vulnerable financially. Many have even started to worry about its long-term effects on their well-being.

Have you ever felt the urge to shop just to cheer yourself up when stressed or anxious about the future? If so, you might be experiencing symptoms of doom spending. This kind of impulsive consumption may feel fun for a moment but poses serious risks to long-term financial health. Let’s take a closer look so you can manage this habit more wisely.

What Is Doom Spending?

According to Psychology Today, doom spending refers to the habit of spending money without much thought, often on things that aren’t truly necessary. This behaviour typically arises as an escape from stress, anxiety, or worries about the economy. The phenomenon became more prominent after the pandemic and has since become a hot topic on social media.

This habit often shows up through luxury spending short trips, fine dining, or buying things that offer only fleeting satisfaction. Those who engage in it tend to spend easily, even when their savings or long-term financial plans are not secure. Instant gratification becomes the main attraction.

Why Do People Engage in Doom Spending?

One of the main reasons people fall into doom spending is stress. Many Gen Z and millennials feel that economic pressure and uncertainty about the future push them to seek relief through shopping. The activity brings short-term comfort. The rise of the “self-reward” culture and the influence of social media further amplify this impulsive consumption pattern.

Psychological factors such as FOMO (fear of missing out) also play a role. For example, buying expensive coffee or trendy products even when the budget is tight. The dopamine rush from instant satisfaction makes it hard to stop. Shopping becomes a quick way to soothe the mind a sense of control amid a stressful life.

This phenomenon is more apparent in today’s digital generation. Easy access to e-commerce and online promotions makes impulsive purchases more frequent. Gen Z and millennials tend to follow glamorous social media trends, even if their financial situation doesn’t support it. As a result, the doom spending cycle becomes stronger and harder to break.

The Financial Impact of Doom Spending

1. The Risk of Mounting Debt

Doom spending can quickly lead to accumulating debt. Many Gen Z and millennials use credit cards or online loans for impulsive purchases. Instead of happiness, they often feel stressed once the bills arrive, increasing financial pressure rather than reducing it.

This pattern also reduces the ability to save. Money that should go toward essential needs is spent on instant gratification. As a result, it becomes harder to build emergency funds or long-term assets, ultimately affecting overall financial stability.

2. Difficulty Saving and Investing

Young generations who believe saving is pointless often choose to live for the present. They feel financial goals are too hard to achieve, so they postpone investing or preparing for the future. This mindset creates imbalance in consumer behaviour, which ideally should sustain the economy.

In the long run, their financial resilience weakens. Without savings or investments, they become more vulnerable to economic shocks. This undermines personal financial stability and makes it harder to build assets or achieve financial independence.

3. The Illusion of Well-Being

Doom spending gives the illusion that life is enjoyable when, in reality, it’s not. The happiness it brings is temporary, while bills and debt soon follow. Instead of “healing,” many people end up feeling anxious and regretful after spending on short-lived pleasures.

This behaviour also distorts self-perception. Excessive consumption may make young people feel they’re keeping up with trends and lifestyles, but behind it lies a loss of control over their finances and an inability to build long-term stability.

4. Effects on Productivity and Well-Being

Impulsive spending driven by stress doesn’t enhance productivity. On the contrary, those trapped in doom spending often feel overwhelmed managing their finances, making it difficult to plan for the future. The social pressure from online platforms reinforces this cycle of stress and overconsumption.

Mental well-being can also deteriorate. The urge to “keep up” and seek instant satisfaction through purchases often leads to financial strain and declining self-satisfaction. Over time, both financial health and overall quality of life are affected.

How to Avoid Doom Spending

1. Track Impulsive Purchases

Keeping a record of spontaneous purchases helps you recognise unplanned spending habits. By identifying spending patterns and emotional triggers, you can start controlling impulses and maintaining financial security.

These records also help you assess priorities  whether an item is truly necessary or simply a temporary desire. With consistent practice, this awareness reduces the risk of doom spending and fosters better money management.

2. Apply the 24-Hour Rule

Before buying anything unnecessary, wait at least 24 hours. This allows time to evaluate whether the purchase is a real need or an emotional impulse. Often, after the waiting period, the desire fades, leading to a more rational decision.

This principle also teaches patience in managing money. Instead of rushing to buy, you can consider alternatives or save for something more meaningful. Over time, this simple rule becomes an effective habit against doom spending.

3. Separate Needs and Leisure Budgets

Dividing your budget into clear categories essentials and leisure helps control spending. Once the leisure budget runs out, it’s a sign to stop. This simple strategy balances short-term pleasure with long-term financial responsibility.

It also clarifies how much you truly need for daily living. This awareness prevents confusion between necessities and impulsive desires, promoting a healthier and more sustainable financial routine.

4. Seek Non-Material Rewards

Find happiness without spending money  for instance, by exercising, pursuing hobbies, or spending quality time with loved ones. These activities bring genuine joy while reducing the urge to seek instant gratification through shopping.

Non-material rewards teach you to enjoy life without sacrificing financial health. By making this a habit, emotional needs remain fulfilled without the risk of debt or impulsive spending. It’s a smart way to break the doom spending cycle.

5. Improve Financial Literacy and Be Cautious of Promotions

Understanding debt risks, the importance of saving, and financial planning makes young people more aware in managing money. Financial education builds awareness about investment, asset management, and spending priorities for long-term stability.

Be cautious of online ads and e-commerce promotions that trigger impulsive buying. Limit browsing time on shopping platforms and evaluate every purchase. These strategies help resist instant gratification while maintaining balance between pleasure and financial responsibility.

Doom spending isn’t just a trend  it’s a growing global phenomenon among Gen Z and millennials. The term gained popularity across social media in late 2024. Shopping can indeed be enjoyable, but awareness and financial discipline are essential to safeguard your long-term stability.

At the same time, this trend opens an opportunity to start smart investing. Instead of merely spending, consider allocating some funds to secure instruments like Treasury investments. This not only protects your wealth but also encourages sustainable financial growth. Shopping can still be fun  just don’t let your savings and investments fall behind.