In the immediate aftermath of the COVID pandemic, many (if not most) of us went on a spending spree driven by pent-up demand and fueled by financial injections from the government.
We spent a lot, especially on things COVID prevented: trips, eating out, and mall shopping, to name a few.
The motto of that time may as well have been “YOLO, on steroids.”
Then reality came knocking on our metaphorical doors.
When Reality Rears Its Ugly Head, What Do You Do?
Collectively, we woke up from a spending frenzy to higher bills, sticky inflation, and a nagging worry that we aren’t saving enough, all topped off by an uncertain economy. Here’s what the COVID morning-after hangover looked like:
- COVID-era incentives dried up, and COVID-era savings ran out.
- Annual inflation skyrocketed – prices jumped almost 20% from July 2021 to date (including 9% one year, a level not seen since the late 1970s), and home prices soared 25% (from $478k to $597k according to the S&P CoreLogic Case-Shiller US national home price index).
- Interest rates spiked (goodbye 3% mortgage, hello unaffordable 7% mortgage).
- On-again-off-again tariff wars became the new normal.
- Unemployment rose 20% (3.4% to over 4%). Meanwhile, the number of job seekers unemployed for 6+ months shot up 73% (from a Feb 2023 low of under 1.1 million to the current number, over 1.8 million).
If all this made you feel financially whiplashed to the point that you’ve slashed your spending, you’re not alone.
This reset, dubbed “revenge saving,” is the flip side of “revenge spending.” Instead of splurging like there’s no tomorrow, we’re stacking cash to feel more in control of our financial lives.
The Data Behind Revenge Saving
Revenge saving isn’t just a catchy name.
If you’ve upped your savings game recently, you’re part of a cultural shift that’s big enough to show in national statistics.
According to the St. Louis Fed, our personal savings rate more than doubled over the last three years (from 2.2% in the second quarter of 2022 to 4.7% in the second quarter of 2025).
This is a far cry from the 24.4% pandemic-era high or even the 9.1% peak in 2012, but it brings us near the ~5% average of the last 25 years. While we aren’t breaking any records, perhaps we’re finally starting to pump the brakes on our spending.
This isn’t just a fortunate few who can afford to sock money away.
Investopedia notes that over half of Gen Z’ers (58%) and Millennials (54%) reported increasing their savings this year. While Gen X’ers (47%) and Boomers (39%) lag, the data show a large minority of those generations are also saving more.
This may signal a cultural pivot, from our consumerist default to a more sober approach to spending and saving.
Some may even see it as a first step in a financial revolt of sorts.
Cracks in a Consumer-Based Economy?
For many, especially in the younger generations, it feels like the game is rigged against them.
First, they were told to get an education to secure a high-paying job. To do this, many had to take on a hard-to-repay burden of high-interest student loans.
Then, adding insult to injury, those high-paying jobs? Yeah, not so much. And that’s even before AI gets fully integrated into all aspects of business, killing off entire sectors’ worth of entry-level and even mid-level jobs.
Oh, and the best part? Student loans don’t get wiped out in personal bankruptcy.
Talk about a triple whammy!
So, perhaps revenge saving isn’t just about belt-tightening in the face of uncertainty.
Maybe it’s a subtle, “Up yours!” to a system that treats us as recurring revenue streams rather than valued customers who should be treated with respect, and who deserve value when we hand over our hard-earned money.
An economy where big corporations raise prices at will, whether or not their costs have increased, to deliver “shareholder value.” Just look at the cost of your subscriptions creeping up when you aren’t looking.
After all, who cares if it’s $9.99 a month or $12.99 a month? It’s just three bucks, right?
Well, multiply that $3 increase by 12 months, and then by your 10 or 20 subscriptions, and we’re looking at hundreds of dollars a year. Money you could have invested for your future, or at least spent on things you truly care about.
No wonder so many of us are responding by buying less, rather than more.
This is where revenge saving starts taking on a tinge of actual revenge.
We’re not denying ourselves for the sake of some abstract frugality. We’re just done with overspending and going deeper into debt to fuel big companies’ record profits and beyond-sky-high CEO compensation.
We’re not willing to continue to serve as their “target audience” anymore. We’re people, and we’ll prioritize our future selves’ financial well-being ahead of corporate profits, thank you very much.
Because let’s be honest, if we don’t do it for ourselves, nobody else will do it for us.
This may also be a distant relative of the FIRE (Financial Independence, Retire Early) movement.
While almost none of us are willing (or able) to save 50% or more of our income to be able to retire in 10 years, maybe we can achieve a more modest goal of investing enough in the coming decade or two to retire before we’re too unhealthy to enjoy it, all while paying for all our necessities and at least some of our discretionary wants.
That’s why, in the final analysis, revenge spending may resonate with so many because we aren’t willing to keep playing a rigged game. We’re done feeding a beast that always wants more.
It’s why revenge saving could be looked at as more than just prudent financial behavior, but as starting to use our money as a quiet protest.
What Drives This Train?
Most of us like to think we’re rational beings who feel emotions.
The truth is closer to the opposite: we’re emotive beings who rationalize our decisions after the fact to justify our choices.
Money is no exception to this rule.
Even if you have no interest in a cultural protest, the “revenge saving train” is powered by feelings. Numbers and spreadsheets just help us drive the train to avoid getting derailed by metaphorical sharp turns.
Here are the most important feelings involved:
- Desire for certainty and control. Especially in an unpredictable economy, having a savings cushion helps calm our “What if?” worries. It gives us a sense of control when everything else feels unpredictable and full of risk.
- Anxiety. Related to the desire for control, this is an understandable reaction to rising bills and a shaky job market. It creates an urge to prepare for the worst. We rationalize this by noting (correctly) that a healthy financial cushion will help us when the unexpected happens, especially, which is valuable in an uncertain economy.
- Guilt. Many feel regret about their “YOLO spending” phase. But guilt is usually counterproductive, trapping us in the past instead of helping us move forward. A healthier reframe is, “What’s done is done. I can’t change the past. The only thing I can do is make different choices today that will help build a better future for me and my family.”
As Kiplinger’s points out, saving is more likely to become a habit when it feels empowering rather than punishing. Our goal isn’t to deny ourselves things that bring us joy. It’s creating space for peace of mind and options that align with our true priorities.
The Pros and Cons of Revenge Saving
Nothing is purely good or bad, revenge saving included.
Done right, revenge saving delivers both emotional and financial benefits.
- Emotional: Increased serenity, confidence, sense of control, sense of progress, and the relief that comes from knowing you’re doing something that helps create a better future.
- Financial: Resilience in case of the unexpected, faster progress toward life goals, and better alignment between your spending and your priorities.
The drawbacks come mainly if you do it wrong.
- Guilt spiral: If you let guilt drive you, you’ll forever keep beating yourself up for past overspending, since you’ll always know that you’d have been even further ahead “if only.”
- Punitive deprivation: If you cut spending too far, saving will start feeling like punishment, which isn’t sustainable. In fact, you risk rebounding back to overspending to make up for feeling deprived.
- Over-saving: The game isn’t about who can die with the most money. It’s about living your best life given your circumstances. This means that hoarding money beyond what’s needed will rob you of the joy and happiness that come from a life well lived.
As with so much in life, it’s all about balance. Revenge saving will work best if you use it to empower yourself, rather than letting it use you to maximize cash at the cost of joy and pleasure.
Benjamin Simerly, CFP®, Financial Advisor and Owner, Lakehouse Family Wealth, weighs in, “Revenge saving can be helpful for families looking to catch up on their retirement savings after a period of overspending. The biggest threat to retirement for ultra-conservative savers, however, is the risk of over-saving in cash as a percentage of their total assets, excluding the value of their home. The real savings goal for most families should be 3-6 months of income, not expenses, in an emergency fund. This could be a combination of high-yield savings accounts, I-bonds with the Treasury Department, and money market funds. Besides that, unless there are special financial circumstances like the need to pay for an elective surgery or a home down payment coming soon, the rest of your cash likely needs to be invested toward retirement.
“The investment side of revenge saving can be equally dangerous when it ignores a proper emergency fund, but the toughest challenge often comes for older couples who over-saved for retirement and refuse to spend in retirement more than the bare minimum. I have worked with older couples who shut themselves in their home despite having a long list of dreams and plans, and having more than enough assets to fulfill those and still have a solid retirement nest egg left.”
Now that we have all this context, we can move on to the “nuts and bolts” of how to do it right.
Eight Steps to Become a Revenge Saver
No matter how much you understand and/or agree with the above, it does you no good without putting it into practice. Here’s a set of practical steps you can implement to start taking positive action.
Pick the ones that feel right to you and tailor them to your specific circumstances.
- Start small with a “subscription detox.” Pull out your credit card and checking account statements and scan them to find those small but repeated monthly amounts. Chances are, you’ll find several you don’t use anymore and may have even forgotten that you signed up for. Cancel what you don’t feel offers enough value to justify the expense, especially those that don’t align with your goals and priorities. Yes, these are “small potatoes,” but if you trim just two or three, you’ll likely save hundreds of dollars a year. This should feel less like a sacrifice and more like reclaiming (a chunk of) your paycheck.
- Consider a no-spend challenge. You can start small, say a weekend during which you commit to not spending more than you must. “No spend” doesn’t actually mean no spending at all. If your rent, mortgage payment, utility bill, auto loan payment, or any other commitment is due, pay it. It just means saying no to impulse buys and “because I deserve it” splurges. This isn’t intended to deny yourself, just to notice how much you’re spending on things that you probably don’t value all that much. Once you’ve succeeded with a no-spend weekend, consider upping your game to a no-spend week or even month.
- Redirect those leaks toward SMART goals. Now that you’ve cut $50, $100, or even $200 from your monthly spending, it’s time to make sure you use that money with intention. Choose your SMART (Specific, Measurable, Achievable, Relevant, and Time-Bound) goals, because concrete goals can turn vague anxiety into measurable progress on things that matter to you. The following are examples of such goals. Just include achievable numbers for how much and by when.
- Start building your emergency fund. This is the buffer between your financial future and the unexpected (think major auto repair, big medical bill, or losing your job). Use the money saved by “plugging your money leaks” to build up to 6-12 months’ worth of expenses, and keep it in a liquid, low-risk account such as a high-yield savings account.
- Pay off high-interest debts. Whether you’re carrying a 10%-interest student loan, 30%-interest credit card debt, or, far worse, a payday loan that costs you the equivalent of 400% annual interest, there are few, if any, more urgent money leaks to plug. As soon as your emergency fund reaches even two weeks’ worth of expenses, prioritize this one.
- Invest for the future. Once you’ve paid off any high-interest debt and your emergency fund is well on its way toward the 6-12 months target, it’s time you start addressing your long-term goals, such as a down payment on a home you want to buy in 5-10 years, a college education for your kids, and retirement (whether an early retirement or just stopping before you’re too old and worn out to enjoy retirement). Invest in a prudent, diversified portfolio, e.g., low-cost index Exchange Traded Funds (ETFs), mutual funds, rental real estate, or a combination of these. If that’s your vibe, you can even add some crypto, just don’t overdo it. And if all this sounds overwhelming, start small, with one low-cost index ETF. As your investing knowledge grows, diversify further.
- Automate for consistency. The easiest way to ensure you’ll stay the course is to remove willpower from the equation by automating these savings, debt payments, and investments. Schedule them to be drawn from your checking account as soon as your paycheck hits, so you pay yourself first and spend what’s left, rather than spending first and then setting aside whatever (if anything) remains.
- Track progress and celebrate successes. It’s hard to make progress on things you don’t define and measure. Track your progress on each goal using an app, Excel or Google sheet, or even a notebook and pen. This will empower you to stay the course, rather than spending everything saved in steps 1, 2, and especially 5 (once your debts are paid off). Then, reinforce your newly created positive habits by setting milestones, minor (e.g., reducing debt by $1k) and major (e.g., reaching your emergency fund target), and celebrating each one you achieve. Pick rewards that feel like progress (such as a book you’ve been meaning to buy, a dinner out, or a day trip to a nearby park), rather than a setback of weeks or months (like a month-long vacation abroad).
Simerly agrees, “So-called ‘revenge savers’ need to return to the basics. Build your emergency fund, then fund your retirement. And while it’s trendy to ‘YOLO’ your life since you only live once, the reality is that healthy households fund retirement savings goals for the month or quarter first, then spend on vacations and other fun stuff with what’s left. So, in short, pay yourself first.”
Are You Ready to Become a Revenge Saver?
Revenge saving isn’t just another fad. It offers very real emotional and financial benefits.
On the emotional side, increased serenity, more control, and reduced anxiety. On the financial front, improved resilience in the face of whatever an uncertain economy may throw your way, and measurable progress toward goals that matter to you.
Doing this right doesn’t mean denying yourself. It does mean being intentional about your spending, splurging on things that bring you joy, and paying for that by cutting things that give you little beyond a momentary dopamine hit.
The key is balance.
Make thoughtful changes, but don’t get sucked into a guilt and self-denial spiral, where you prioritize cash-hoarding over life joy.
For many, revenge saving also doubles as a quiet rebellion, pushing back against a system designed to separate us from our money as quickly and efficiently as possible.
If you’re thinking of starting on this journey, consider a practical question followed by a deeper one:
- If you joined the “revenge saving” movement today, what would be the first thing you’d cut, and what would you do with the money it saved?
- Are your spending and saving driven by fear (of missing out on the spending side, or of running out on the saving side), or are you doing things with intention, focusing on what will bring you the most joy over a lifetime?
Are You Ready to Hire a Financial Advisor?
You’ll find a growing number of financial advisors featured on Wealthtender. You can search based on the areas of specialization most important to you and where they’re located, or browse our financial advisor directory for more search options to find advisors who may be a good fit for you.
Find Your Next Financial Advisor on Wealthtender
📍 Click on a pin in the map view below for a preview of financial advisors who can help you reach your money goals with a personalized plan. Or choose the grid view to search our directory of financial advisors with additional filtering options.
📍Double-click or pinch pins to view more.
Disclaimer: This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.
About the Author
Opher Ganel, Ph.D.
My career has had many unpredictable twists and turns. A MSc in theoretical physics, PhD in experimental high-energy physics, postdoc in particle detector R&D, research position in experimental cosmic-ray physics (including a couple of visits to Antarctica), a brief stint at a small engineering services company supporting NASA, followed by starting my own small consulting practice supporting NASA projects and programs. Along the way, I started other micro businesses and helped my wife start and grow her own Marriage and Family Therapy practice. Now, I use all these experiences to also offer financial strategy services to help independent professionals achieve their personal and business finance goals. Connect with me on my own site: OpherGanel.com and/or follow my Medium publication: medium.com/financial-strategy/.
Learn More About Opher