If you often find yourself late night online shopping more often you’d care to admit, you’re not alone.
A recent survey by Slickdeals revealed that 64% of participants have increased their impulse spending this year compared to others. On average spend $314 per month more than they should on splurge items. That’s about $3,700/year.
As ESSENCE previously reported, revenge spending is in. The concept came about post-COVID-19 lockdown, when after spending so much time at home, people began splurging money on items and experiences.
Last October LVMH Moet Hennessy Louis Vuitton SE raked in one of its highest sales months despite the International Monetary Fund‘s warning of a worsening outlook for the global economy. Their report highlighted a continual rising in inflation rates and likely hiring freezes on the horizon.
Despite this dark news, luxury houses like Christian Dior, where a single, lower-price bag can command $4K, saw startlingly high patronage.
“Luxury is not a proxy for the general economy. We end up selling to affluent people and they have a behavior on their own, which is not necessarily totally aligned with economics,” said LVMH’s Chief Financial Officer Jean-Jacques Guiony in an interview with Bloomberg.
Despite this uptick is splurging, it’s been financially challenging over the past few years for many Americans. Another Slickdeals report showed that 58% found 2022 to be particularly economically difficult for them — a turn from 2021, where only 15% found the year challenging, and 2020, which was difficult for 47%.
The report focused on gauging participants thoughts about their spending habits and goals going into next year. When asked whether or not their 2023 New Year’s resolutions were going to include being smarter with money, only 63% said “yes.”
“While this year’s survey reveals that folks are less optimistic about their finances than they have been in past years’ surveys, the new year is a good opportunity for a financial reset,” said Louie Patterson, personal finance content manager for Slickdeals in a news release.
According to the findings, 55% are aiming to repair their financial status in 2023. To do so, people plan on spending money more wisely (54%), removing unnecessary bills (41%), getting out of debt (36%) and creating a monthly budget (35%). Their aim is to save an average $312 per month.
Patterson continued, “Shopping smarter can lead to big savings with just a few simple tweaks such as eliminating subscriptions, tapping into rewards programs, and finding more deals to get the best value. A community of millions of real shoppers helping other shoppers like the one at Slickdeals is a great way to ensure you’re getting the best products at the best prices.”