Online shopping and impulse buys are basically baked into American life at this point. Especially now that shopping is embedded in social media apps, buying without thinking has never been easier.
And it’s coming at quite a cost, no pun intended. A survey of Americans found that online shopping is out of control for a lot of people, and it’s contributing to one of their biggest financial regrets.
Yes, you read that right: More than 12% of Americans surveyed have spent at least $5,000 in a single day buying random stuff on Instagram or whatever — and many have dropped even more.
Miljan Zivkovic | Shutterstock
That’s according to a survey conducted by finance platform Clarity Capitalwhich asked 1,000 people of all ages, evenly split between men and women, about their biggest financial regret. Overspending online was high on the list for every demographic surveyed, including Boomers, Gen X’rs, Millennials, and Gen Zers.
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OK… this is getting a little uncomfortable, because $63,000?! That’s a down payment on a house, in some places anyway. Maybe we really ARE spending too much on, if not avocado toast and lattes, then TikTok Shop candles and Shein outfits or something!
The jury’s out on that one, but the perception among those Clarity Capital spoke to that they’ve lost huge, five-figure sums of money from their profligate spending was pretty unanimous. It wasn’t just buying stuff that did it either — respondents cited everything from credit card debt to not asking for raises as factors that have eroded their net worth.
As for the reasons, people cited trying to “keep up with the Joneses,” predatory lending services like Buy Now Pay Later apps such as Klarna and AfterPay, and even the “Girl Math” trend as the things that have sucked money out of their pocket.
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The emotional toll of these spending habits is clear in Clarity’s results, with 55% saying that overspending has exacerbated the stress and anxiety in their life. And among all respondents, one regret stood out above the rest: not investing their money.
Retirement accounts were the investment people felt most regretful about, with 48% naming it as their chief concern. People also regret not investing in stocks (34%) and real estate (22%). And in a sign of the times, 30% wish they’d invested in crypto, even though crypto scams and pump-and-dump schemes came in third on the list of money-losing trends respondents said they’ve fallen prey to.
Roll it all together, and on average, people surveyed said they think they’d have at least $100,000 more in net worth if they’d invested instead of spending, leaving more than a third feeling hopeless and like it’s too late.
Cast Of Thousands | Shutterstock
Clarity, and basically every financial advisor on the planet, however, says that while this is a common feeling, it’s not the reality. Sure, you can’t exactly go back in time and undo all those frivolous impulse buys and invest them into the stock market, but it is never too late to change course and start saving and investing.
Clarity suggests starting with just $10 automatically taken from each paycheck and added to a high-yield savings account or investment account to get the ball rolling. Using the 50/30/20 budgeting method, which takes into account spending for fun, can help you wrangle your money without feeling like you have to lock yourself in the house and never have a latte again. And setting “cooling off” periods of 24 hours before making a purchase can help you differentiate between things you really want and frivolous impulse buys.
As Clarity puts it, “mistakes aren’t the end — they’re a lesson,” and recovery starts with identifying those mistakes and then counteracting them with small, achievable financial goals. Start there, and before long, you’ll be able to make up even more ground lost to all those spur-of-the-moment spa packages you bought while bored at work. Every bit helps!
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John Sundholm is a writer, editor, and video personality with 20 years of experience in media and entertainment. He covers culture, mental health, and human interest topics.
