We’re hearing more and more about the “revenge saving” mindset: the impetus to stash your money away with the same intensity that you may have spent it after COVID lockdowns ended.
The driver? A need to feel in control over rising costs and an unpredictable economy. (And in some cases, a little regret about not hanging on to more of your cash after the pandemic.)
Indeed, there’s growing evidence that the U.S. is shifting into a more frugal mode. After nearly steady monthly declines in 2024, Americans’ saving rate (the % of disposable income that people save vs. spend) is ticking back up this year. Workers are contributing a record share of their paychecks to their 401(k)s. And challenges like “no-buy July” are sweeping social media.
As inflation and tariffs fuel economic uncertainty, 52% of Americans polled by Marist/Yahoo Finance in May were eating out less, 48% were spending less on clothing, and 39% were cutting back on travel.
So what? No matter where the economy is headed, you’re not likely to regret some extra financial discipline. If your inner revenge-saver is ready to come out, one way to maintain momentum is to earmark savings for specific expenses that fall outside your regular budget.
Here are a few tips:
• Whether you're saving for your next vacation or for a set of braces, separating your cash into goal-specific buckets, or “sinking funds,” can make it easier to track your progress. By walling off these funds, you’ll also be less tempted to dip in and use the money for other things.
• The beauty of sinking funds is they keep you organized and on track for financial goals – i.e. planned expenses. Keep them separate from your emergency savings, which you’ll want as a buffer if you lose your job or something else goes wrong unexpectedly.
• You can have a sinking fund for just about anything: Maybe you’re saving to cover necessities like that bathroom that needs renovating or replacement tires for your car. Or, perhaps you want to avoid breaking the bank on fun stuff, like new climbing gear or Comicon tickets.
• Thanks to modern tech, there’s no need to dig backyard holes or open a dozen new accounts. One option is to create SoFi Vaults within a primary SoFi high-yield savings account. With up to 20 separate vaults available, you can explore sinking fund categories beyond the standard vacay and holiday gifts to quality-of-life upgrades like a new pet or hobby.
Saving starts with a mindset. It’s not about denial and deprivation, but control and agency. Reframe it as a choice, and you’re much more likely to make it happen.
Related Reading
Feel Like Saying 'Screw You' to the Economy? Try Revenge Saving (CNET)
Sinking Funds: Everything You Need To Know (How to Money)
8 Key Frugal Living Tips (SoFi)
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