Experts Say “Revenge Savings” Could Be Your Secret Weapon for Building Wealth
Revenge saving is the newest money trend that’s flipping old spending habits on their head. Instead of splurging after a tough season, people are channeling their frustration and anxiety into saving as much as possible, as quickly as possible. The idea started gaining traction after the pandemic, when many faced job losses, drained emergency funds, or big hits to retirement accounts.
Now, Americans (especially younger generations) are using it as a way to “take back control” of their financial lives. The shift comes as a wake-up call for some after realizing their current savings won’t support the lifestyle they want in the future. Others are simply tired of the constant spending cycle and rising costs of daily life.
Plus, uncertainty about the economy, questions about Social Security, rising costs, and a general desire for more stability are making it easy to see why reverse saving is catching on. The good news is you don’t need to overhaul your entire life to make it work.
What Revenge Saving Looks Like in Real Life
Image via Canva/Yuganov Konstantin
It doesn’t have to mean living like a monk. It can be as simple as taking on a “low-spend” month. You can cook at home more often to skip restaurants or pause subscription services. Setting a 30-day goal to cut one spending habit and funneling the extra into savings is another way to do it.
Revenge savers are also opening separate accounts for specific goals. That might mean one for vacations, one for home maintenance, one for medical expenses, and one for emergency purposes. Automating transfers into each one makes it effortless, and watching the balances grow becomes its own motivation. Data from Vanguard shows that 45% of retirement-plan participants increased their contributions last year, so many people are already making intentional moves like this.
Turning Revenge Saving Into a Long-Term Win
Image via Getty Images/Andrii Dodonov
Financial planners say that while the emotional spark of revenge saving can kickstart progress, the best results come from turning it into a system. One popular approach is “reverse budgeting,” where you set your savings goals first—emergency fund, retirement, college, down payment—and only then decide how much to spend on bills and extras.
Another smart move is planning gradual increases. Even boosting retirement contributions by 1% a year can have a significant impact over time, and it’s less painful than making a big leap all at once. This works for other long-term goals, too, like college funds and investment accounts.
How to Keep It From Feeling Like a Punishment
Strict budgets rarely stick if they feel too restrictive. To make revenge saving sustainable, it helps to add small rewards along the way. Hitting a milestone, like paying off a credit card or reaching your emergency fund goal, could mean a budget-friendly celebration. Go on a nice dinner or a short getaway. You can also splurge on something you’ve been eyeing.
Tracking progress can keep you motivated, too. Budgeting apps and spreadsheets, or even a simple chart on the fridge, make it easier to see how far you’ve come. And if you share finances, get everyone in the household involved. When goals are discussed openly, it’s easier to stay on track and avoid misunderstandings about where the money’s going.
The Bottom Line
Image via Getty Images/blackCAT
The goal of revenge saving is to be more intentional and direct your resources toward what matters to you. Is it retiring early or traveling more? Buying a home or just sleeping better at night knowing you’re prepared? The end goal is control, not sacrifice.
You’ll be surprised to find out that the emotional boost you get from seeing your accounts grow can be just as satisfying as spending. And unlike shopping sprees, the benefits stick around.