"It's like, well, if you don't think you're going to be able to afford a home or you don't think you're going to be able to go on that actual vacation you want, it becomes like the Estée Lauder lipstick index of, "Oh, well, I can't afford a new TV, so I'm going to go to the drugstore and get myself a little lipstick." Or, "I'm in a dollar dribble for a little coffee, I'm going to do this.""
"You're spending on things that you will not ultimately derive true happiness out of, true pleasure, true joy, just to get a dopamine hit. When you are in a position of uncertainty, it is more important than ever to have a plan, because if you just leave it up to hope, it's not going to get you there."
Uncertainty in prices, jobs, and politics pushes people toward short-term, dopamine-driven purchases that substitute for larger goals like homeownership or travel. Small indulgences such as inexpensive lipstick or daily coffee provide temporary comfort but do not create lasting happiness. Relying on hope alone produces poor financial outcomes; creating and following a concrete plan becomes essential during volatile times. Many people use AI tools for budgeting, investing, and taxes, but surveys indicate AI can sometimes lead to bad decisions, so users should be cautious about where AI genuinely helps and where human judgment remains necessary. Lifestyle inflation and Gen Z's shifting job market add further risks and opportunities.
Read at Fast Company
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