357. Why do we doomspend?

In this episode of "The Psychology of Your 20s," Jemma Sbeg discusses the phenomenon of "doom spending," which is the impulse to spend money rapidly and in large sums due to anxiety and uncertainty about the future. She explains that this behavior is a coping mechanism to manage emotions, providing a temporary dopamine boost. Jemma explores the historical context of such spending patterns, noting their increase during times of geopolitical uncertainty, and highlights how social media algorithms exacerbate the issue by creating emotional whiplash through targeted ads. She offers practical tips to combat doom spending, such as "doom saving," reallocating money towards experiences, implementing a 24-hour rule before making purchases, and increasing the "pain of paying" by removing saved card details and using cash. The episode encourages mindful consumption and recognizing the underlying emotions driving overspending.