You may have heard the term “revenge spending,” where people splurge after periods of financial restraint, like during the pandemic lockdowns. But the opposite behavior has also emerged: revenge saving. Instead of overspending, some people are saving aggressively, almost as a way to “get back” at financial uncertainty or past money mistakes. While saving money is always a smart move, revenge saving comes with its own motivations and potential challenges. Understanding this trend can help you recognize whether it’s guiding your habits, and how to approach it in a healthier, more balanced way.
Definition: Revenge saving is the practice of putting away large amounts of money as a response to past financial stress, overspending, or uncertainty.
Why Do People Engage in Revenge Saving?
Revenge saving usually comes from an emotional response to financial stress or uncertainty. After experiencing events like job loss, economic downturns, or heavy debt, many people feel a strong need to protect themselves by saving as much as possible. Others may be reacting to regret over past overspending and want to “make up for it” by hoarding cash. Fear of the unknown, such as future emergencies or inflation, can also fuel this behavior. At its core, revenge saving is about regaining a sense of control and security when money has previously felt unpredictable.
Pros and Cons of Revenge Saving
Like most financial behaviors, revenge saving has both benefits and drawbacks. On the positive side, it helps people quickly build up an emergency fund, pay off debt faster, and strengthen their overall financial safety net. It can also encourage better discipline and mindfulness around money. However, the downside is that saving too aggressively can lead to burnout, feelings of guilt for spending, or missing out on experiences and opportunities in the present. In some cases, people may even avoid investing, keeping all their money in savings accounts, which can limit long-term growth. The key is to recognize both sides and aim for a balanced approach that protects your future without sacrificing your quality of life today.
Example of Revenge Saving
Imagine a young professional who, before the pandemic, regularly spent money on travel, dining out, and shopping. When lockdowns hit and income felt uncertain, they realized how little savings they had and how vulnerable that left them. In response, they swung to the opposite extreme, cutting out nearly all discretionary spending and funneling over half their paycheck into savings each month. While this aggressive approach helped them quickly build an emergency fund and pay off lingering debt, it also left them feeling isolated and guilty whenever they wanted to enjoy a small luxury.
Summary
Revenge saving is the emotional counterpart to revenge spending, an intense reaction to financial uncertainty that pushes people to save more aggressively than usual. It can be a powerful way to rebuild security, pay down debt, and regain financial confidence, but it also carries the risk of creating unnecessary stress or lifestyle deprivation. The healthiest approach is to use the motivation behind revenge saving to set strong financial habits while also allowing room for guilt-free spending. By balancing savings with living, you can build stability for the future without sacrificing your well-being in the present.
To protect your future, start with What’s An Emergency Fund And How To Build One.
FAQs
How is revenge saving different from regular saving?
Regular saving is planned and goal-driven, while revenge saving is more emotional, often triggered by past financial stress or uncertainty. It tends to be more extreme and less balanced.
Is revenge saving always a bad thing?
Not at all. It can be helpful if it pushes you to build an emergency fund or pay off debt. The problem comes when it causes guilt, burnout, or prevents you from enjoying life.
How can I tell if I’m revenge saving too aggressively?
Signs include feeling anxious about any non-essential spending, avoiding experiences you can afford, or neglecting long-term investing because you want all your money in cash.
Can revenge saving hurt my long-term financial growth?
Yes. If all your money sits in savings accounts, you may lose out to inflation and miss opportunities for long-term growth through investing. Balance between saving and investing is key.
How do I make revenge saving healthier?
Set specific goals for your savings (like 6 months of expenses), automate contributions, and give yourself permission to spend on things that bring joy once essentials and goals are covered.
Is it possible to shift from revenge saving to sustainable saving?
Yes. Start by reframing your mindset, see saving as a tool, not a punishment. Create a plan that includes both saving for the future and budgeting for present enjoyment.