Recently I read an article about recession fatigue. It’s a feeling of financial exhaustion that many Americans are dealing with right now. For over two years, we’ve been faced with a lot of economic uncertainty. The pandemic caused many workers to get laid off and record levels of inflation have strained our budgets. Now we may be heading toward another recession in 2023. It’s been a lot to deal with, so it’s no wonder that we’re all stressed out and tired of hearing bad financial news.
But you can’t let financial apathy take over and keep you from preparing for the recession that may be coming. About 31% of Amercians say they aren’t financially equipped to handle a downturn, but aren’t doing anything to get ready. Trying to weather a downturn without an emergency fund will ultimately cause more financial stress. So it’s important not to ignore the potentially tough times that may be ahead of us and take steps to prepare.
However, this is easier said than done when you’re burned out. Here are some tips to help you deal with recession fatigue so you can build your emergency savings and make financial progress.
Curb Impulse Purchases
Experts say that recession fatigue often causes consumers to make more impulse purchases to distract themselves from their negative feelings, and I can definitely attest to this. When I reviewed my spending recently and redid my budget, I was pretty appalled at how much money I was wasting on random unplanned purchases like home decor and hardware.
I’ve had to figure out a way to curb my impulse purchases so I can divert more money to my savings account and prepare for a potential downturn. One of the strategies I’ve implemented is avoiding stores that usually trigger me to impulse buy, such as TJ Maxx, Harbor Freight, and HomeGoods.
Although many people’s impulse buys happen online on Amazon, I usually slip up when I’m out and about doing errands. So I’ve also started buying more necessities online and utilizing services like free curbside pickup at supermarkets. That way I don’t mindlessly browse in the store and pick up items I don’t need.
Another good way to curb impulse spending is to think about a purchase for two or three days before you buy it. This helps you pause and consider whether or not you really need the item. Nine times out of ten, you’ll probably end up realizing you can get by without it.
Shift Your Mindset
Experts say one of the big drivers of recession fatigue is feeling deprived. During the pandemic, we weren’t able to go out to eat, travel, see friends and family, or enjoy a normal life. Once the pandemic eased, inflation started to take off, so many of us couldn’t afford to take a vacation and make up for that lost time. And now it seems like we’ll have to tighten our belts for even longer to get through this potential recession. When you can’t see the light at the end of the tunnel, you can start to get burned out or even depressed.
What’s helped me with my negative feelings and recession fatigue is to shift my mindset. I’m trying not to focus on all the things I can’t do or buy because I have to buckle down financially. Instead, I’m trying to cultivate gratitude for my financial discipline and the savings I’ve been able to build up.
Because I have a financial cushion and am working on growing it every month, I don’t have to feel as stressed out about the possibility of losing my job. And if the recession doesn’t end up happening (experts say the chance of a downturn is 50/50), then I may be able to allocate these extra savings toward my other financial goals, like paying off my house. Treating saving as an opportunity instead of an obligation has helped me get out of my financial funk.
Focus on Self-Care
When you’re feeling down and out of sorts, it’s extra important to focus on self-care. Your health comes first, so if you’re feeling fatigued, consider giving yourself a boost using supplements. If you’re unsure what to choose, take a look at these Total Restore Reviews to weigh up the pros and cons. Similalrly, treat yourself to a spa day every once in a while. Just because you’re trying to save money and prepare for tough times doesn’t mean you can’t enjoy yourself. After all, some of the best things in life are free, such as spending time with friends and family, going for a walk, or reading a book under a cozy blanket.
Although it seems counterintuitive, establishing a monthly fun budget can also help you deal with recession fatigue and increase your savings rate. If you try to cut out all unnecessary spending, you may make your recession fatigue worse, which can cause you to make more impulse purchases and undo your savings progress. It’s better to budget a small sum of money for fun every month than to deny yourself and end up going on a spending binge.
Have you been feeling recession fatigue lately? How do you deal with financial burnout? Let me know in the comments section below!
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Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.