the term (Revenge Saving) is becoming more and more common these days, but most of us have no idea what it means and where did that even come from.
We will break it down here so you can compare your (Saving Goals) and (Revenge Saving)
What is Revenge Saving ?
Surely you remember the Covid20, where the pandemic hit every single country in the world, and there was a lock down in every city.
Due to covid, many people lost their jobs, closed their business down, prices were shaky, and there was nearly no financial stability.
In some markets (especially after the lockdown was lifted) there was a huge REVENGE BUYING happening, where rich people that had to change their spending habits and couldn’t enjoy online shopping went crazy in retail stores.
The concept of Revenge Saving is a combination of both concepts but in somehow different way, let me explain.
According to Cite Key Data: 37-44% of American are are saving more than the last 10 years.
To sum up, Revenge Saving is the decision of (I want to save every penny I can, and buy what I only need, not what I want)
Why people started Revenge Saving?
Normally this happens after an incident or a wake-up Call, some tragic accident, or loss, and many other reasons.
But I think the emotional shock of the financial situation worldwide and the frustration that follows inflation, the lack of resources to cover the monthly expenses, and the historical events that shows that more than 90% of the world population are not ready to face another financial crisis and will starve.
Why is Revenge Saving a trend?
In 2024–2025, we’re seeing more revenge saving because:
Banks Interest rates are higher, because the difficulties they face getting back their money from borrowers, which forces them to make their interest rates higher, so only people that can pay back actually take personal financing.
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Saving earns real returns again, which is true because in some countries, you can make only up to 5% return on your deposit which is only valid for very large amounts.
Job markets are unstable: now with the competition happening, the existence of AI, and under qualified candidates that are doing jobs which they shouldn’t be doing, there is no Job Security, and even though, very few percentage of people are happy with their salaries and they can actually live off of their salaries, which makes them seek another jobs, and gradually causing the market to be unstable and more due to remote jobs too.
People want bigger emergency funds, because if you got fired from your job, do not expect that $5,000 would be enough until you find another job, and settle, and if something happened during that time, kiss that $5,000 a goodbye.
Do you remember the revenge buying we spoke on above ? People are recovering from spending guilt after overindulging post-COVID.
What are the differences between Revenge Saving and Saving Goal?
Great Question, to answer it we need to be clear on few things, first that we clearly understand revenge saving, and that we clearly understand saving goal.
if you’re not sure you understand saving goal, check the Saving Goal Calculator to have better understanding.
Mainly, Savings goal is out of a plan, its not as traumatic as the revenge saving, means:
Sarah wants to have $12,000 in her savings account by the end of the year.
she simply divided that amount on the number of months remaining to reach that goal, which let us say it’s $1,000 a month, so in 1 year Sarah will have that amount in her savings account.
Let us say that she makes $5,000 a month, spends $3,000 on utilities, rent, etc. which sums up to $2,000 a month, she saves $1,000 and the other $1,000 she uses for entertainment or whatever she desires.
This is simply the Savings Goal. But, if Sarah moved to a smaller house, with less rent and less bills, she ends up having an extra $2,500 by the end of each month and she says: (I’m going to save up as much as I possibly can) and she does save the whole $2,500 for 1 year, that would make $30,000 saved.
Revenge Saving is usually for bigger goals, and after some trauma or incident, Revenge Saving is out of emotional reaction, it is logical to some months to save more than other months, because it’s not a plan, its maximizing the saving.
The only downside to Revenge Saving in my opinion is that it cannot build a habit, or like it cannot become a lifestyle of some sort. But it is a great way to begin an investment of some sort or just for having more emergency funds in your account.
The best practices of Revenge Saving:
Okay i love this part, i can go on for days writing but I will make some brief points
- Divide your income into categories of (must pay, payoff, and saving)
- Track your expenses from biggest to smallest
- Cut down on your biggest expenses (if rent, sublet a room in your house, or have a roommate to pay off with you) if it’s car gas, get public transportation for couple of months, and so on.
- Before you make any purchase think (Do i need it or do I want it) if the answer is you need it, think if it will make you spend money on it or save money on it, an example (buying a scooter is not a need, but it will save you more money than public transportation.
- If you want it, you probably don’t, at least for now.
- Save the money in a place that you don’t always have access to, so you don’t spend in pleasure moments and give yourself an excuse.
- last but not least, keep the goal you are saving for in mind, write it on a paper and keep it on you all the time, and use the law of attraction to actually imagine how your life would be with having all that money with you.
Final thoughts
Revenge saving is one of the greatest trends nowadays, especially when you see lots of people spending right and left, and kids making millions off of the internet, the unexpected market, the inflation, and all. I believe that the time you are revenge saving is the best time to research an investment that you can put the money you saved in, which can turn that money into a new source of income that will make your bank account explode.