Ellevest reposted this
Economic uncertainty can really change your relationship to money. Over the last year, we’ve heard about a lot of people resorting to “doom spending,” aka a form of retail therapy that you may engage in when you’re feeling a little … uneasy about the state of the world. Like impulsively buying plane tickets or getting sushi delivered five nights of the week. (If anyone gets it, we do.) Lately, we’ve been reading about the other extreme: “stress-saving.” It’s exactly what it sounds like. It’s extreme hoarding. It’s choosing to eat beans and rice for dinner every day when you could afford a more elaborate meal. It’s denying yourself a vacation you deeply deserve — and need. It’s saying “no” to the daily latte and making coffee at home every day, even on the weekends. All to squirrel away as much money as you can in your bank account. Cost-of-living anxiety, big political shifts, job insecurity — there’s a lot going on right now that may force you to rethink your budgeting and spending. And we’re all in favor of it. There’s no better time than now to start implementing better money habits — and saving money is definitely a good money habit. But you can, in fact, do too much of a good thing. When you leave your money in a bank account, you miss out on an opportunity to help it grow. Having a healthy emergency fund is important — but so is having a healthy retirement account and investment account. As Dr. Sylvia S. Kwan, CFA, CAIA noted in Ellevest’s Election Edition of our Monthly Market Insights, historically, markets have generally trended upward, no matter which political party is in the White House. In fact, the stock market has returned an annual average of 10% since 1928*. And, of course, there are other good money habits to implement. At Ellevest we believe that budgeting for the so-called “frivolous stuff” — whether that’s a daily latte or an impromptu island getaway — is an important part of financial wellness. That’s what budgeting is for — giving you permission to splurge on fun. And if you need a financial planner to help you do it — and feel better about the future — that’s what our all-women team of financial planners are for. *As measured by the S&P 500. Prior to 1957, S&P used a composite of 90 stocks to represent the stock market. https://lnkd.in/gxbBFKSj
Hey Sallie! Your insights on the balance between "doom spending" and "stress-saving" are so relevant, especially in today's economic climate. In the insurance world, we often talk about risk management, and your point about balancing savings with investments is spot on. It's like having a diversified insurance portfolio—covering the essentials while also planning for growth. I'm curious: How do you see the role of financial education evolving to help people find this balance? I'm looking forward to your thoughts!
your relationship with money reflects your emotional state. moderation is key.
This resonates so much, especially as economic uncertainty drives shifts from “doom spending” to “stress-saving.” I've seen founders leveraging AI to build tools that promote financial well-being by personalizing budgeting and investment strategies. It’s exciting to see how technology can help individuals find that balance between saving for security and spending for joy. Curious how Ellevest sees AI playing a role in shaping financial wellness for individuals!
Balancing essential savings and calculated investments can nurture long-term financial wellness.
Love the acknowledgment here that financial wellness isn’t about deprivation; it’s about balance. Thank you for normalizing the idea that it’s okay to save and still treat yourself.
Such a timely reminder, Sallie Krawcheck! Economic uncertainty has a way of reshaping how we think about money—and finding that balance between saving and smart investing is key. At The Swiss Quality Consulting (www.tsqc.ch), we often see how financial strategies can empower individuals to feel more secure, even during uncertain times. #FinancialWellness #SmartInvesting #EconomicUncertainty #MoneyMindset #PersonalFinance
Economic uncertainty often triggers extremes in how we handle money—either splurging or hoarding.
The world feels a bit uncertain, so tightening the purse strings makes sense. But I think there’s a smarter way to handle it, like making sure your money is actually working for you—whether that’s in savings or investments.
Economic fluctuations really influence our behavior, don’t they? Finding balance between saving and enjoying life is crucial. Budgeting should never feel like a punishment. What strategies do you think work best?
Senior Software Architect - Java Architect, Cloud Architect, AWS Architect📣 All views are my own
1moEconomic uncertainty challenges our perceptions of stability and forces us to reevaluate our relationship with money. In times of unpredictability, we may shift from a mindset of abundance to one of caution, focusing more on savings and financial security. However, it also provides an opportunity to rethink our values around wealth—reminding us that financial resilience isn’t just about accumulating resources, but about adapting, prioritizing what truly matters, and being mindful of our long-term well-being.