As people face an uncertain economy, a new trend is happening called “revenge saving.”
More Americans are tightening their belts, spending less and increasing their savings.
Post-pandemic people took part in revenge spending, splurging on travel and experiences. Revenge saving is the reversal of that trend, saving very aggressively.
“A lot of people feel maybe the economy is a little more uncertain than I thought it was,” Bjorn Amundson, financial planner with Quarry Hill Advisors, said. “Maybe my job is not as secure as I thought it was.”
If you’re feeling the urge to funnel buckets of money into saving, there are ways to keep your financial plan balanced.
“One month a year, you cancel all your subscriptions for that one month,” Amundson said. “You don’t go on any vacations for that month. You don’t go out to eat that month. You can deny all those things for a month and that could put you in a much better position for the rest of the year.
Experts say saving is a good thing, but cutting your budget to the bone can lead to savings burnout.