The Doom Spender Truth

It’s a question on many people’s minds today: Why has it become so difficult to save?

In recent years, many people have been experiencing major changes in their spending habits due to economic uncertainties. This situation, which we will explain as “doom spender”, is the result of factors other than individual preference. So, what are the reasons behind the inability to save?

In this article, we will focus on four main factors that are interconnected with each other as reasons for not saving: inflation effect, income inequality, and credit card usage. These factors will help us explain the phenomenon described as doom spender.

The Inability to Save

First, let’s address the issue of lack of savings. This is a problem that more and more people are suffering from in modern societies. Many scholars emphasize that high living costs and low incomes make it difficult to save. Especially in big cities, the cost of living far exceeds income. When people spend almost all of their income on basic needs, it is almost impossible to save for the future.

The idiom of “stretching your legs to the limit” is one of the best examples of the importance of saving. However, academic research shows that even the middle class in Turkey has insufficient income to save.

1. Inflation Effect

Inflation, which constantly reduces the value of money, puts huge pressure on purchasing power. This means that you can buy less and less with the money you earn, year after year, day after day. Economists say that inflation works like a “hidden tax”, because as wages rise, inflation rises at the same rate and people’s living standards do not change positively. People are forced to buy more expensive products, which leads to a lack of savings and spending in the moment without thinking about their future financial situation.

2. Income Inequality

Income inequality is widening the gap between rich and poor in society. Academics see this as the main reason for the great inequality in the economy. While lower-income earners have to work harder to survive, higher-income earners have much easier access to opportunities to rapidly increase their incomes. This reinforces the injustice in society and the vicious cycle of “rich getting richer and poor getting poorer.”

3. Credit Card Usage

Credit card use… Another factor that causes spending to get out of control. Credit card use has become an option for almost everyone to balance their spending. According to economists, this leads people to adopt a “spend now, pay later” approach, leading to financial problems in the long run. Economists state that although credit cards provide short-term comfort, they significantly increase borrowing and financial problems. In short, credit card spending is one of the biggest obstacles to people’s ability to save.

Conclusion

As a result, we need to be aware of how inadequate it is to see the concept of ‘doom spender’ only as a reflection of individual habits. We need to be aware that the big picture, the doom spender concept, is a phenomenon that goes far beyond individual habits, and that economic factors multiply the effects of the doom spender concept.

In short, all these factors prevent many people from saving and cause us to question for whom the bells are really ringing.