Financial benefits of a digital detox

Higher temperatures and summer break are the perfect recipe for a vacation. But what if you took a different kind of vacation this summer—maybe a break from your phone? Digital detoxes are becoming more popular than ever, with luxury retreats popping up across the globe. But if you’re not working with White Lotus money, that doesn’t mean a digital detox is out of reach—and it may have more benefits than you think.

What is a digital detox?

As the name suggests, a digital detox is period during which you reduce the amount of time spent online or even abstain from it. This could be lowered time on social media or completely disconnecting from your devices . Some people do weeklong challenges, while others try to commit to longer terms. Regardless, the best way is to begin with realistic goals, like starting with 20-minute screen-free periods. You can also turn off notifications, leave your phone in another room, or turn your phone off altogether to help reduce the distractions.

Benefits of a digital detox

There are usually two main reasons people want to do a digital detox: mental health and time. Constant connection via our phones or social media can be emotionally draining, and doom-scrolling wastes more time than we realize. But your digital habits can also have financial consequences.

1. Mental health benefits

Scrolling through social media can be fun initially—it activates our brain’s reward center by releasing dopamine. But those feelings can quickly turn sour, and prolonged usage can trigger various mental health issues. Constant comparison with friends or influencers can make you feel like you’re falling behind or missing out, exacerbating feelings of loneliness, anxiety, and depression. Moreover, with the increasing use of filters, these comparisons can also cause body image issues. The cost to seek treatment for these negative feelings can add up, with Americans spending an average of $90 a month on mental health.

2. Reduced impulse spending

Another negative effect of social media is the unnecessary spending. We may end up purchasing things we don’t need to combat that FOMO. In fact, Buy Now, Pay Later (BNPL) services have increased, but so has the number of people struggling to make payments. It’s also nearly impossible to be online and not see an ad. Whether you’re scrolling social media, watching YouTube, or even playing a game on your phone, we’re regularly inundated with ads. Even worse, some are designed to blend into the rest of the content on your social feed, leading to almost $1,000 spent yearly on impulse online purchases—and don’t forget the guilt when you feel like that late-night purchase was a mistake.

3. Physical health benefits

There are also negative physical effects of excessive screen time. Constantly looking at your phone can cause eye issues, like digital eye strain, costing billions of dollars annually according to the American Optometric Association and Deloitte Economics Institute. You may also develop tech neck or texting thumb, real medical issues that have been attributed to prolonged screen time.

4. Reduced reliance

We spend so much time on our phones that we end up using them for almost everything, including entertainment. The costs of streaming services and other subscriptions add up fast, with Americans spending nearly $200,000 over their lifetime on internet, mobile, cable, and streaming services. That doesn’t include the billions spent on in-app purchases and the cost of upgrading to the newest phone every few years.

Long-term changes

We know it’s almost impossible to fully quit using technology, which is why so many people are choosing to take a digital detox. In the long run though, there are several small changes you can make to reduce your time online and regain control over your life, and in turn, your finances.

1. Set a limit on screen time

One of the easiest steps you can take is to set a limit on your use. If you find you’re doom-scrolling for hours before bed, designate those hours as tech-free. You can also create a tech-free bedtime routine to help adjust, like meditating or reading instead of looking at a screen. Your phone also allows you to set time limits on specific apps, so you can only use them for an allotted period. Another easy to way to reduce screen time is to create screen-free zones. Designate places like your kitchen table or your bedroom as screen-free and stash your phones away while you’re there.

2. Reduce temptations

It can be hard to resist some of the more enticing offers, especially when they take advantage of your FOMO. A good way to avoid this is with the 24-hour rule—waiting a day for nonessential purchases. This can help you weigh the decision more carefully and reduce your impulse buys. You should also review your apps and subscriptions, ensuring you’re not paying for something you don’t need or use.

You may want to delete shopping apps, or turn off their notifications, to reduce the urge to buy when a sale hits. Lastly, you can also reduce temptation by planning for it. It may sound counterintuitive, but adding a category to your budget for “fun purchases” can give you a little leeway to splurge occasionally, without the extra guilt.

3. Take care of yourself

Since we can’t totally get away from screens, we can add a few things to our tech routines to help counteract negative effects. You can easily incorporate healthy habits, like 20 minute eye breaks and meditations, to break up screen sessions.

Key takeaways:

• Excessive screen time can have many negative physical and mental health consequences, as well as financial.
• Review your apps and digital subscriptions, and remove those you don’t need. Set timers on apps that you feel are timewasters.

It’s easy to spend hours staring at a screen, but doing so can cost more than you realize. Have you ever taken a digital detox? Share your best screen-time reduction tip in the comments below!