Erik Mclean / Unsplash

A February study by CreditCards.com found that 42% of Americans are either stockpiling goods or planning to do so. The research found that 1 in 5 Americans are “doom spending,” which is buying excessively or impulsively, out of fear of some future event. Three in 10 Americans say they’re actively preparing for another pandemic.

What goods are consumers stockpiling? Should you follow suit? 

“People are primarily stockpiling shelf-stable groceries and toilet paper,” explained Melanie Musson, retail finance expert at Clearsurance.com. 

Sure enough, the CreditCards.com data shows 76% of stockpilers have loaded up on non-perishable foods. Another 72% have stocked up on toilet paper, remembering those panicky days early in the pandemic. 

But the compulsive consumption doesn’t end there. The data shows these buyers also hoarding medical supplies (49%) and medications (44%). Many are also snatching up  personal care products (25%), water filtration systems (21%), and firearms and ammunition (15%).

Younger buyers have also bought more clothes, electronics and appliances than usual. A February study by shopping rewards platform Smarty found that 51% of Gen Z are stocking up on clothes, and 38% of millennials are loading up on electronics.

“Many consumers are buying clothes and electronics before tariffs take effect,” pointed out Smarty CEO Vipin Porwal. 

In a word, no. And not just for altruistic or civic-minded reasons. 

“Stockpiling leads to clutter and waste,” added Musson.

Plenty of Americans ended up throwing out food they stockpiled early in the pandemic — or still have it cluttering their cupboards. It doesn’t even save you substantial money.

“If a pack of toilet paper costs $10 and lasts a month, and then increases in price to $13, you’ll save yourself less than $1 a week,” Musson said. “Is that much savings worth overfilling your storage space?”

It also drains your finances. Nick Drewe, CEO and personal finance expert at Wethrift, pointed out the opportunity cost.

“Hoarding ties up capital that can otherwise be used elsewhere,” Drewe explained. “The best buffer against uncertainty is financial flexibility, which you lose when you over-purchase goods. It can lead to long-term financial instability, especially for those using credit cards.”

That says nothing of the fact that stockpiling exacerbates inflation and shortages, either. 

Rather than stock up on toilet paper and canned beans, Drewe recommends building your financial buffer.

“Put more money put into reserve funds or pay off debt with a high interest rate,” he said.

Aaron Razon, a consumer finance expert at Couponsnake, agreed that Americans should shore up their finances if they worry about inflation, tariffs, trade wars or future pandemics.

“Beyond paying off high-interest debt, diversify your investment portfolio,” Razon added.

Assets like stocks and real estate have historically protected investors from inflation. Go beyond U.S. index funds or a rental property on the side, and actually diversify. Look at international stocks, including both developed and emerging markets. Look at passive real estate investments like syndications, secured notes, and debt and equity funds. 

Diverse investments, coupled with a deep emergency fund and paid-off consumer debts, can protect you far better than a basement full of food cans and shampoo.