Are you doom spending?

If "doom spending" has become your go-to for coping with stress, you could be making withdrawals from not just your bank account, but your health too.

- Jo Jukes

Your order is on its way!" Is there any email subject line that brings more joy? But there could be more behind your motivations for hitting "buy now" than you expect. The results of a US-based survey, released in November 2023, by Qualtrics on behalf of credittracking company Intuit Credit Karma, found that over a quarter (27 per cent) of respondents reported "doom spending" to cope with stress.

The paper defines doom spending as, "spending money despite concerns about the economy and foreign affairs to cope with stress". A more extreme version of retail therapy, doom spending is splashing cash on unnecessary purchases such as clothes, designer handbags, luxury skincare, expensive dinners and the latest gadgets to cope with anxiety and uncertainty.

Whereas retail therapy is a short-lived response, "doom spending" or "stress spending" can be a longerterm issue, and sometimes a sign of something more serious. Doom spending can put you at risk of debt or financial stress. This raises cortisol levels, increases anxiety and could negatively impact your mental health.

Research commissioned in 2022 by the Australian Securities and Investment Commission (ASIC) found that people experiencing financial challenges are at least twice as likely to encounter mental health issues than those who aren't.

Doom spending can also cause rifts in relationships, evoke feelings of shame, and drain your bank balance of funds that could be spent on healthy food or activities to keep your health optimum such as a gym membership or yoga classes.