Beware of Doom Spending

Yes, the root cause of our financial problems is that everything is too expensive, especially unavoidable purchases like groceries, gasoline, and rent.  It is also true that necessities are so expensive that salaried employees are now starting to feel the precariousness of their financial situation and getting a taste of what freelancers and hourly paid workers have always felt.  If people with steady employment want to understand why they feel broke even though economists say that the economy is doing well, they should look in the mirror.  If you have ever bought an airline ticket or the newest model of iPhone, then you are your own worst enemy.  Your failure to withdraw from consumer culture is keeping you in debt.  There are numerous people in South Florida who work 60 hours per week and do not have any money left in their bank accounts after paying for rent, groceries, and utilities, but you are not one of them.  For help recovering from the financial fallout from doom spending, contact a Plantation debt lawyer.

The Rise of Buy Now Kvetch Later

In a recent report on Business Insider, Emily Stewart notes that, despite consistently unaffordable prices of consumer goods, the conspicuous consumption genre of spending among people who, before the pandemic, considered themselves solidly middle class is at about the same level as it was in 2019.  The difference is that consumers must now incur more debt to keep up these spending habits, and incur debt they do, whether with credit cards or buy now pay later (BNPL).

Consumers are not happy about this; in fact, they are steaming mad.  Even worse, they don’t see the situation getting better any time soon.  Their response is to keep buying expensive clothes and accessories, so they can look stunning when they meet up with their friends to complain about the economy, or to spend on experiences, as their generation is so famous for doing.  This trend has helped dine-in restaurants recover from the pandemic, but it leads to a self-perpetuating cycle of doom spending.

Invest in Relationships Instead

People shop and dine conspicuously to fulfill a need for human connection, but you can still get that human connection without spending a penny.  If you have a job but your debts keep getting bigger, don’t join the Great Resignation from the workforce; instead, join the Great Resignation from recreational spending.  If you are lonely, text your friends.  If you aren’t sure which of the people in your contact list are really your friends, you can find out by texting them to talk about anything from sports to cooking to favorite TV shows to your kids to debt repayment efforts.  Perhaps splurge on a meal out with them next month, to reward yourself for all the purchases you didn’t make this month and the amount that you paid toward the principal balance of your debts.

Work With a Debt Lawyer About Reforming Your Spending Behaviors

A South Florida debt lawyer can help you reverse course if you are running into trouble with consumer debt.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.

Source:

businessinsider.com/hate-spending-consumers-economic-sentiment-retail-sales-inflation-gdp-growth-2024-4