People Are Becoming Addicted to This “Smart” Financial Habit—And Experts Are Worried

When I was a teenager, nothing made me happier than seeing the amount in my bank account increase. I felt proud that working my little hostessing job was enough to help build my savings and pay for gas in my car. Unsurprisingly, I’ve taken this predisposition to save more and not overspend with me into adulthood. And according to TikTok, I’m not the only one. Lately, my FYP has been flooded with users proclaiming they’re “addicted to saving money,” saying that doing so gives them just as much of a dopamine rush as spending would.

As a natural saver, I was initially on board with this, namely because it seemed to champion healthy money habits. Yet after diving deeper, I’ve learned that experts believe this addiction can be just as harmful as overspending. But why, exactly, could focusing on big savings do more harm than good? And is it even possible to find the perfect balance between saving and spending? I asked experts to explain.

Ahead, everything you need to know about what it means to be addicted to saving money, including key signs of this addiction and how it can backfire, as well as tips to find the sweet spot between saving and spending.

MEET THE EXPERT

Robinson Torres

Robinson Torres is the Lead Financial Expert at Cleo. With over a decade of experience working directly with individuals and couples, Rob Torres specializes in helping people improve their financial habits, confidence, and build lasting skills that empower them to reach their goals. He is also an Accredited Financial Counselor (AFC®) and a Certified Financial Education Instructor (CFEI®).

MEET THE EXPERT

Ben Markley

Ben Markley is a personal finance educator and host of Sketchy Advice by YNAB. Ben is a trusted voice on money trends as seen in Fast Company and CBS, and leverages his experience as a former teacher to break down complex financial topics in a way that’s both entertaining and easy to understand.

What does it mean to be addicted to saving money?

Being addicted to saving money doesn’t mean you’re savvy with budgeting. Rather, it means that choosing to save instead of spending money gives you a major hit of dopamine. This, in essence, is the same feeling of elation you might experience after exercising, having an orgasm, or making a large purchase. With this addiction, watching the balance in your account grow and your credit card bills dwindle gives you a thrill unlike any other.

What are the key signs of this addiction?

Obviously, someone who’s addicted to saving money will penny-pinch. However, they’ll do this in a way that defies logic. There isn’t a rhyme or reason to their spending because they’re solely focused on saving as much as possible. “Someone addicted to saving money might (literally) go the extra mile to save on gas, spend hours comparing prices, or try to learn plumbing instead of hiring a professional in order to maintain their savings progress,” Personal Finance Expert and host of Sketchy Advice by YNAB on YouTube, Ben Markley, explained.

Furthermore, Lead Financial Expert at AI financial assistant Cleo, Robinson Torres, says this addiction also manifests emotionally. Similar to the post-purchase regret captured in this TikTok video, someone with this addiction typically feels guilty or anxious after buying things they need and can afford. Because they equate their self-worth with their net worth, witnessing even a slight dip in their bank account is enough to set off a chain reaction of negative and uncomfortable emotions. Additionally, other key signs include declining invitations to try and save more and obsessively checking your bank account, according to Torres.

Why being addicted to saving money can do more harm than good

To be perfectly clear, we all want to have more money in the bank, and there is absolutely nothing wrong with being strategic and saving wisely. But being addicted to saving money isn’t what’s going to help you do this. Instead, it keeps you rooted in a scarce mindset of greed, where no amount of money will ever be enough. When this happens, Markley says that spending money on anything, including things that would improve your life, is practically impossible because you’re so fixated on the numbers.

“When you’re addicted to saving money, you can’t relish eating a stadium hot dog at a baseball game or buying a t-shirt at a concert because you’re more concerned with the cost than the experience itself.”

Needless to say, this makes it damn-near impossible to enjoy the fruits of your labor, or anything else in life, for that matter. When you’re addicted to saving money, you can’t relish eating a stadium hot dog at a baseball game or buying a t-shirt at a concert because you’re more concerned with the cost than the experience itself. TikToker Bradley on a Budget, explains that he even struggles with being able to enjoy gifts he receives, since his instict is to regift it to save money. Every decision in your life revolves around money when you get to this point, Torres says—which ultimately undermines your quality of life. Someone who’s addicted to saving money can’t relinquish control and let themselves relax and have fun.

How to become more balanced with spending and saving

Whether you’re a natural saver or have a predisposition to spend, the bottom line is that we can all benefit from becoming more balanced with money. There is a sweet spot between spending and saving responsibly. Here’s how to find it:

Don’t make every decision solely based on cost

Contrary to popular belief, spending strategically doesn’t always mean writing something off or buying it based on price alone. Rather, it means evaluating all angles—from price to quality, experience, and what you can afford—and using that information to make a purchase decision. An overseas trip with the girls might not offer a ton of ROI, but it will give you memories you can’t put a monetary value on. So if you can afford to go without spreading yourself too thin, it is perfectly OK to do so. “An expense doesn’t have to make sense on paper to be a great decision for your life,” Markley emphasized.

Track your finances every month

It’s easy to use the total on your credit card and whether your bank account balance is going up or down as measuring sticks for financial well-being, but that’s just the tip of the iceberg. The reality is that our spending varies by some degree every month; you might spend more if you’re attending multiple weddings, have a lot of birthdays in your family, and so forth. However, keeping track of where your money is going monthly can help you stay focused on your financial habits and make you feel more in control of your finances.

Luckily, there are tons of ways you can do this. You can use a monthly budget planner, track your finances in Excel, or even use an AI financial app like Cleo. Regardless of how you choose to do this, knowing what’s causing an increase or decrease in your spending will be reassuring. Better yet, it’ll reinforce healthy money habits and get you acquainted with the ebb and flow of money.

Create savings boundaries

It’s easy to fall into the trap of thinking that money is fleeting—especially when the cost of living requires spending your money as soon as you make it—but this mentality is toxic. It creates a scarcity mindset that encourages hoarding every possible penny. You become so obsessed with building your bank account that you forget how to enjoy well-deserved indulgences, like going to the movies or getting ice cream.

To combat this, Markley recommends setting savings goals that indicate you’ve saved “enough.” This might be saving enough to cover six months’ worth of expenses, a new work setup, and so forth. According to Markley, the idea behind this is to shift your focus away from the numbers and give you a sense of accomplishment. More importantly, it reinforces boundaries with saving, so you can enjoy some of your money once you reach those goals.

Remember that you control money—not the other way around

Lastly, it’s important to recognize that money doesn’t control you. You’re the one in the driver’s seat with your finances. Money is merely the vehicle to help you live the life you want. Embracing this mentality will help you view money as the tool it is.

When it comes down to it, being “good” with money doesn’t mean compulsively saving or overspending because you feel like it. It means recognizing that “the value of money isn’t money itself but what it can offer you,” according to Markley. The last thing you want is to look back on your life and wish you had enjoyed it more. So while we all have to live within our means, it is perfectly OK to enjoy the fruits of your labor, so long as your bills are paid. If we can do that, our finances (and our lives) will be all the better for it.

ABOUT THE AUTHOR

Arianna Reardon, Contributing Writer

Arianna is a freelance writer and journalist, and the self-proclaimed hot and dirty martini queen. At The Everygirl, Arianna uses her authenticity and relatability to empower, inspire, and motivate women everywhere. Whether she’s writing about sex and relationships, career and finance, beauty and fashion, wellness, or home and living, Arianna’s passion shines through in all her work.

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