Revenge Spending Vs. Thoughtful Frugality – Which Best Describes You?

I first heard the phrase “revenge spending” just the other day. I really had no idea what it meant. But once I saw it more fully fleshed out in a Wall Street Journal article a few days later, I got it.

Basically, “revenge spending” refers to the act of splurging, in a variety of ways, as a result of the oppression many of us have felt since the pandemic, and governments’ efforts to mitigate its spread, have taken over our lives.

We’re tired of the restrictions, either overt or psychological, and utilize these actions as a way to push back.

Revenge spending can be seen in many ways, a few of which include buying high-end items such as clothing, furniture, workout equipment, etc., purchasing more expensive beer, wine and spirits than we would have previously and enjoying more expensive foods, whether cooked in-home or as takeout, as well as dining out more frequently than we did prior to Covid.

Even as someone who leans more frugal in most aspects of life, I can definitely see a few of these traits manifesting in my own life.

The corresponding trend that was mentioned in the Journal article was “thoughtful frugality.”

Unfortunately, as the article states, “thoughtful frugality” is not necessarily the result of an individual’s desired action, rather, it’s a result of “…financial hardships from job losses and economic instability that is forcing thrifty spending behavior.”

Many Americans know this status all too well and are using “thoughtful frugality” to make it through.

But, for those whose financial situation isn’t dire, both “thoughtful frugality” and “revenge spending” are being seen implemented together by reducing spending in certain areas to splurge in others…or at least maintain a certain level of spending in a specific area.

A sort of compromise for those whose general nature isn’t to spend, but due to the current circumstances, need a financial relief valve to keep the pressure from becoming too great.

There is no question, no matter which category you fall into, spender or saver, we all receive a certain “high” from spending money.

And right now, many of us are using that emotional boost to keep our spirits up and our eyes focused on that end-point down the road.

How about you? Which category are you in right now – Thoughtful Frugality, Revenge Spending or a combination to the two?

wallet image courtesy of scottchan at freedigitalphotos.net