Doom scrolling about turmoil like tariffs can cause bad money choices

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Doom scrolling — the habit of consuming large amounts of negative news — has become increasingly common, especially with social media feeds and online news sources constantly updating information about geopolitical events. These events can have an impact on our cost of living, and with Canadians already worried about the rising costs of essentials, the fear of anything making that worse is troubling. While the news updates — such as the unending flow of news about United States President Donald Trump’s tariff threats — can be bad enough, the act of doom scrolling could be influencing your money choices.

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Constant exposure to negative news can significantly increase anxiety and stress levels, making it harder to think clearly and make wise financial decisions. This heightened anxiety can lead to impulsive spending or abandoning a sound money plan for fear of an economic downturn. The anxiety about future economic instability might also result in fear-based spending, similar to what we saw during the early months of the pandemic. While it’s wise to be prepared for emergencies, stockpiling excessive amounts of items, such as a three-year supply of toilet paper or pickles, can unnecessarily strain your budget.

Spending too much time immersed in negative news can divert your attention from productive activities, such as researching budgeting tips, debt repayment strategies, or additional career-focused education that can protect your family should a drastic economic downturn affect your primary source of income. Prolonged exposure to negative content can also take a toll on your overall well-being, leading to emotional rather than logical spending choices as you try to cope with added stress or anxiety. Sensational headlines may also result in a distorted perception of market conditions as you search for mortgage renewal, home and vehicle buying options, or investment opportunities.

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To mitigate the impact of doom scrolling, strive to balance your exposure to negative news with positive news sources. Seek out objective rather than sensational headlines that might exaggerate the situation or provide only a one-sided analysis. Engage in activities that reduce stress and promote mental and emotional well-being, such as exercise, meditation, hobbies, or spending time with loved ones.

Tame the turmoil with a plan for your money

Managing stress, fear, and anxiety is crucial for making intentional decisions to navigate the high cost of living. Then, prevent financial difficulties from worsening during uncertain times by addressing concerns about sharp interest rate increases, market volatility, job loss due to tariffs, or a resurgence of inflation. Recognize that stress is a normal reaction to geopolitical unpredictability that could threaten our financial stability. However, stress can also be a powerful motivator, prompting us to take action when it would be easier to keep scrolling and avoid what causes us stress.

Start by evaluating your current financial situation to develop a plan that addresses your primary concerns. This approach helps you concentrate on aspects within your control rather than dwelling on uncertainties. If you’re worried about not having enough money to maintain your household, review your budget. Examine your income sources to identify which ones could be impacted if events such as tariffs become a reality. Additionally, explore new sources of income you could rely on if your employment income were to suddenly be drastically reduced. Creating flexibility in your budget will help you adapt to changing circumstances while still prioritizing essential expenses.

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To effectively manage your expenses, review your spending carefully. Identify any expenses you may have overlooked, such as a gym membership you no longer use, an extended warranty for a device you no longer own, or a pet insurance policy your pet no longer qualifies for. This thorough review of your spending can help you pinpoint habits that don’t align with your financial goals and identify areas where you can cut costs by at least 50 per cent to jumpstart an emergency fund. This hands-on approach to budgeting not only helps you save up a financial cushion to weather unexpected financial turmoil, but the tangible results can also alleviate the stress and worries of not knowing what to do.

When it comes to borrowing, focus on reducing high-interest credit card debt to provide yourself with the most stability, rather than taking on new debt. As the costs for some essentials rise, reduce your spending on less essential items and reallocate any money you save towards paying off your most expensive debt. Seek guidance from a professional credit counsellor at a not-for-profit agency to develop a strategy for paying off your debts as quickly as possible.

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When renewing your mortgage, approach it with the same risk tolerance as you would for your long-term savings, such as a registered retirement savings plan (RRSP) or tax-free savings account (TFSA): If fluctuating rates keep you up at night, consider locking in a fixed rate to give yourself the gift of stability. By maintaining a proactive approach and healthy mindset to debt management and financial planning, you’ll be better equipped to make sound financial decisions.

Focus on building resilience by being mindful of how you consume the news and take proactive steps to mitigate doom scrolling. By maintaining awareness of how your stress levels and emotions influence your financial decisions, and making deliberate choices, you can navigate uncertainty with greater confidence and financial security.

Mary Castillo is a Saskatoon-based credit counsellor at Credit Counselling Society, a non-profit organization that has helped Canadians manage debt since 1996.

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