After a year of COVID-19 limits, the idea of slipping back into pre-pandemic routines seems delightful. For people who managed to keep earning, trim expenses and stash away savings during lockdown, there’s a strong urge to splurge.
With so many ready to amble down the aisles of beloved stores, enjoy meals at restaurants, attend live performances and travel again, the risk of a surge in revenge spending is real.
What Is Revenge Spending?
Revenge spending describes going overboard with purchases in an effort to make up for putting plans on hold in 2020. It’s overspending driven by a sense of recompense.
To compensate for canceled holidays, you book an extravagant international getaway. Since your last birthday was celebrated on Zoom, you decide to host an upscale, catered party. The announcement that offices are reopening prompts you to buy an entirely new wardrobe — even though you have work clothes tucked away in your closet.
While returning to some normalcy is nice, burning through your savings because of unchecked revenge spending isn’t smart.
How to Prevent Revenge Spending From Derailing You Financially
First, let’s be clear: indulging yourself occasionally is fine — provided you do it responsibly.
If you’re up to date on bills, have a robust emergency fund and are addressing other financial priorities like reducing debt and saving for retirement, treating yourself every so often is reasonable.
But if impulsive buying is harming your financial well-being, consider these strategies.
1. Give Yourself a 7-Day Pause
When something catches your eye, jot it down instead of purchasing it immediately. If after a week you still want it and it fits your budget, then it likely isn’t just an impulse buy.
For higher-priced purchases, consider extending the waiting period to 30 days. As your wish list grows, rank items by importance so you don’t waste money on things that matter less.
Waiting before you buy also gives you time to hunt for a better price, which leads to the next tip.
2. Be a Smart Shopper
Instead of paying full price, look for ways to pay less.
Browser add-ons like Rakuten or Honey can unearth discounts when shopping online. Cash-back apps such as Ibotta or Fetch Rewards help you save when buying in stores. When shopping in person, keep an eye out for storewide sales or item-specific markdowns.
If new isn’t necessary, check thrift stores or local buy-nothing groups.
Use credit card rewards when arranging travel, and be thoughtful about when to book flights. If you want to spend on experiences — a spa day or a dinner out — browse deal sites like Groupon.
3. Find a Cheaper Alternative
Lowering expectations slightly can let you enjoy post-pandemic life while staying within budget.
If you crave a change of scenery, pick a nearby city you can drive to instead of a cross-country flight. Bring groceries to your Airbnb so you aren’t dining out for every meal.
If reconnecting with friends is the goal, choose free yoga in the park and a scenic walk instead of a $50 brunch.
This list of free activities can spark ideas for enjoying yourself without spending much.
4. Establish No-Spend Days
You don’t need to abandon habits formed during the pandemic.
Try designating several days each month when you don’t spend anything — aside from essentials like bills and groceries.
Pick a realistic number of no-spend days so it doesn’t feel too restrictive. After months of limited spending during quarantines, you might find it easier than expected to stick with it.
5. Budget for Fun Money
Another tactic to avoid revenge spending is to allocate part of your budget specifically for wants.
This is built into a 50/30/20 framework, but even if you don’t follow that method, it helps to earmark money for indulgences. That could mean saving a little from each paycheck for a manicure or contributing to a sinking fund each month for your next trip.
Setting aside funds for fun lets you enjoy treats without jeopardizing your finances.
Rethink Your Spending Post-Pandemic
Readjusting to life after the pandemic may take time, and that’s perfectly fine.
It’s perfectly reasonable to want to reward yourself with a getaway or a special purchase after everything you’ve been through.
As long as you spend mindfully and avoid impulsive choices driven by a desire to make up for lost time, you should be in solid financial shape.
Nicole Rivers is a senior writer at Savinly.
