What the Rise of the ‘Introvert Economy’ Means for Your Money in 2024

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Going out less than you used to? You might be part of a new trend called the “Introvert Economy.” See what it means for your finances and your social life. [[{“value”:”

The past few years of pandemic isolation and social distancing seem to have caused long-lasting effects on Americans’ social lives — and on the economy. According to recent data cited by Bloomberg, Americans are going out for dinner earlier in the evening (if they go out at all). Younger generations are drinking less alcohol, and less money is getting spent on alcohol at bars and restaurants. Americans are spending less time socializing and more time shopping online, watching TV, or playing video games.

Bloomberg columnist Allison Schrager calls this trend the “Introvert Economy.” Americans seem to have gotten accustomed to spending lots of time at home, shopping online, and watching streaming services. Have you noticed a decline in your urge to socialize? Are you going out less often than you used to? Are you spending less money at restaurants and more money on food delivery apps? If so, the Introvert Economy might be shaping your life.

Let’s look at what the “Introvert Economy” means for your personal finances — and how you can use this trend to save more money in 2024.

1. Avoid doom spending: Get a budget app

One downside of spending more time at home is that many people use the extra hours to shop online. And sometimes, they’re buying stuff that they can’t actually afford. A recent study from Intuit Credit Karma found that 27% of Americans are “doom spending” to cope with stress.

Just because you’re spending more time at home doesn’t mean that you’re automatically going to save more money. It’s easier than ever before to shop online, sign up for subscriptions, and have money go flying out of your bank account. Even if you’re not doom spending, even if you’re socializing to a healthy extent, every Economic Introvert should consider signing up for a budgeting app.

The best budgeting apps can show you where you’re spending the most money each month, and help you find ways to save. Maybe you can cut back on Introvert Economy splurges like takeout meals, delivery fees, or expensive clothes that you’re not going to wear to social events anytime soon.

2. Pay attention to how you’re spending your time

One downside of the Introvert Economy — if you’re not careful — is that you can sometimes fall into habits of just staying home all the time and self-isolating, and go into “goblin mode.” Especially if you work from home and live alone, it’s easy to fall into a pattern where you stop showering, you stop exercising, you stop engaging with the world outside your four walls. (Glad this has never happened to anyone I know!)

Try to be mindful of how you’re spending your time. Even if you’re not socializing as often as you used to, try to create structure and routine for your days. Try to make conscious choices about how you spend your time and money. If you’re trying to save money by cooking more meals at home instead of going out for dinner, recognize that deliberate choice — and track your progress.

But if you’re unintentionally falling into self-isolating habits, if the money you save on restaurants is just getting spent online on stuff you don’t really need or want, if you’re spending so much time at home not because you “want to” but because you can’t think of any other ideas…then this can be bad for your personal finances and your personal wellness.

3. Invest in your mental and physical health

It doesn’t matter if you save thousands and thousands of dollars if you end up losing touch with loved ones and suffering harm to your mental health. Don’t let the Introvert Economy totally take over your life. No matter how introverted you are by disposition, you still need to see friends and loved ones. You still need to exercise and get out in the world.

Sometimes people get so focused on financial wellness and savings goals that they lose sight of the everyday fundamentals of what makes life worth living. Don’t be afraid to spend money on the things and experiences that improve your mental health and physical wellness. Splurge on a gym membership if it helps you stay active. Meet friends for a nice restaurant dinner if it helps you feel better-connected and more energized. Plan an affordable vacation so you have a new reason to get out of the house.

Bottom line: There’s nothing wrong with being an introvert. But the rise of the so-called “Introvert Economy” could be a troubling sign that too many Americans are self-isolating to an unhealthy extent. Instead of living your life entirely on screens and online shopping apps, look for ways to reconnect to the outside world. Even if you need to spend some money to get out of the house, investing in fun experiences and relationships can improve your overall wellness — and might even help your personal finances.

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