As the pandemic’s toughest restrictions lift, most people are ready to live it up this summer. Now that socializing, shopping, and travelling are back on the books, it’s important you don’t fall into a post-pandemic trap: revenge spending.
Revenge spending is any surge of splurge spending following times of austerity. When it comes to this summer, it’s extra spending in retaliation for the past two year’s strict lockdowns and travel bans.
After the stress of the pandemic, it’s natural to want to make up for lost time. But you’ll want to be careful with how much fun you have this summer.
How Revenge Spending Can Stir up Trouble
There’s no harm in spending more as the world opens up again. It’s a reality of returning to pre-pandemic life. As you accept more social offers and begin to travel again, you’ll be spending more than when you were in the middle of the lockdown, when you couldn’t go anywhere.
The problem arises when you spend without any limits. In the rush to catch up on all the fun you missed during the pandemic, you can wind upspending more than you ever did before the lockdown. You might even use up savings and maxout credit cards.
Without these financial safety nets, you’re vulnerable to anything you didn’t budget for this summer. How will you afford to fix a leaky water heater, blown tire, or broken window? In emergencies, you may have to apply with online loans direct lenders for additional help.
If maxing out your cards left a dent in your credit score, you may only qualify with cash advance lenders for installment loans with costly rates. These high rates are why online direct lenders recommend only ever using short term personal loans for bad credit when you have no other financial options.
3 Tips to Resist Revenge Spending
While online loans direct lenders are there as a crutch in unexpected emergencies, it’s better if you don’t get into these situations altogether. Here’s how you can avoid overspending.
1. Get to Know Your Budget
It’s been a while since you last went out and had fun. Plenty of things about your financial situation might have changed since then, so it’s a good idea to redo your budget. This spending plan lets you see how much money you have to spend on the fun things once you take care of the essentials.
2. Hit a 36-Hour Pause on Purchases
Online ads, last-minute door crashers on either side of you at the checkout, or friends asking if you want tickets for a concert are temptations you might struggle to resist.
If you find it hard to say no in the heat of the moment, follow the 36-hour rule. Don’t buy or accept invitations for the first 36-hours after you’re first tempted. This financial procrastination can help you keep a level head and realize you don’t need to waste your money.
3. Log Out of Social Media
It’s hard to stay committed to your responsible spending goals when everyone online is doing the opposite. FOMO — or the fear of missing out — can wear down your resolve and push you to keep up with friends and family.
After all, if your loved ones are going on vacations, special dinners out, and concerts, why can’t you?
The thing is, everyone’s finances are different. They might have more wiggle room in their budget to afford these luxuries. Removing yourself from these temptations can help you stick with your goals.
Revenge Isn’t Worth It
As you plan to stretch your social butterfly wings this summer, don’t lose sight of your financial goals. Use your budget to strike a balance between enjoying the season and saving money.