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Understanding Doom Spending: Why Young Indians Are Choosing Instant Purchases Amid Future Uncertainties

A growing number of young earners are navigating persistent financial anxiety by spending on immediate comforts and conveniences, a phenomenon termed doom spending. Driven by steep housing prices, unstable employment conditions, and the easy accessibility of quick commerce, young adults in India are balancing short-term gratification with long-term financial planning in an increasingly challenging economic landscape.

What Happened

The phrase doom spending originated in Western consumer-finance discussions around 2023, where Intuit Credit Karma defined it as spending money despite concerns about the broader economy and future security, often as a coping mechanism for stress. A 2024 survey in the United States showed that 37% of Gen Z respondents engaged in this behaviour.

In India, similar spending patterns are increasingly visible as young consumers grapple with the rising cost of living, high youth unemployment, and soaring real estate prices. When traditional financial milestones such as purchasing a home require substantial capital, smaller daily splurges—such as quick-commerce food deliveries, skincare products, and retail purchases—feel more manageable and immediately rewarding. This environment allows routine low-ticket spending to accumulate rapidly, offering temporary psychological relief even as significant life decisions are deferred.

Key Highlights

  • Delayed Milestones: According to Deloitte’s 2026 India survey, 54% of Gen Z respondents stated that their financial condition forces them to postpone major life choices, while 37% indicated they could not afford to purchase a home. Over 60% of both Gen Z and millennial respondents noted that housing costs affect their career decisions.
  • Unemployment Realities: While India’s overall unemployment rate stood at 3.1% in 2025, joblessness among individuals aged 15 to 29 reached 9.9%. In urban sectors, youth unemployment reached 13.6%, rising to 18.9% among young urban women. Deloitte found that 27% of Indian Gen Z respondents viewed unemployment as a primary concern.
  • Rising Property Costs: Figures from the National Housing Bank revealed that residential property prices increased year-on-year in 44 of 50 monitored cities between January and March 2026, dropping in only six.
  • Rise of Quick Commerce: According to Bain & Company, India’s quick-commerce sector expanded to $10–11 billion in 2025, having doubled each year since 2023. Quick-commerce visits generally conclude in under five minutes, compared with more than ten minutes on standard e-retail platforms, making smaller, repeated transactions frictionless.
  • Digital Market Influence: Gen Z comprises 40% to 45% of India’s e-retail consumer base and contributes roughly half of incremental orders. Data from Flipkart for 2026 showed that Gen Z accounted for nearly 60% of its beauty sales.
  • Financial Participation: Young earners are not solely spending. SEBI’s Investor Survey 2025 recorded that 66% of Gen Z are aware of at least one securities product, and they make up 56% of individuals planning to enter the securities market. TransUnion CIBIL also found that Gen Z constituted 41% of first-time borrowers in the quarter ending December 2024.

Why This Matters

The rise of doom spending highlights how structural economic barriers reshape everyday consumer behavior. Because saving smaller sums feels insufficient to counter escalating home prices and career unpredictability, individuals often turn toward instant purchases that offer predictable, immediate outcomes.

Psychologist Isha Karan, co-founder of Oorvai Wellness, notes that present bias plays a significant role when the future feels uncertain. Karan explains that when an individual cannot be confident about job security, income progression, or homeownership, saving for an abstract future becomes less emotionally rewarding than experiencing an immediate return. A purchase delivers a direct link between action and outcome, providing a brief sense of agency and predictability that unstable broader systems do not guarantee.

What to Watch Next

Mental health and financial experts point toward psychological and habit-based approaches rather than complete restriction to maintain financial health. Karan recommends substituting costly spending with low-cost rewards that still deliver connection and accomplishment. Establishing achievable short-term financial targets, acquiring new skills, or mapping out structured career plans can recreate visible results without exhausting personal savings. Developing a greater tolerance for uncertainty is also identified as a key skill to prevent impulsive spending from acting as a default emotional outlet.

Frequently Asked Questions

What is the difference between doom spending and retail therapy?

While retail therapy is generally triggered by short-term personal events like a difficult workday or a breakup to temporarily lift one’s mood, doom spending stems from broader, ongoing pessimism regarding the economy, career stability, and future affordability.

Are young earners in India abandoning saving entirely?

No. Data indicates that Gen Z continues to engage with personal finances. According to SEBI, 66% know about securities-market products, and they represent 56% of prospective market entrants. TransUnion CIBIL also found that Gen Z accounted for 41% of first-time borrowers at the end of 2024, demonstrating that borrowing, investing, and saving continue alongside immediate spending.

Source: Times of India