Saving money is becoming the new trend, and it’s catching on fast.
Social media influencers are leading the charge in promoting the idea of minimal consumption. They are embracing thrift shopping, participating in no-buy challenges, and prioritizing purchases that have long-term value, all while encouraging their followers to do the same under the hashtag “#underconsumptioncore”.
“There is a growing movement against excessive consumption,” says Dana Miranda, author of “You Don’t Need a Budget” and the “Healthy Rich” newsletter on Substack. “It has become so easy to acquire things, even things that we don’t truly cherish. We need to rethink the role of stuff in our lives.”
Kasia Stolarz, a certified financial planner in Halifax, Nova Scotia, adds that often, “the things we buy don’t bring us the happiness we expect.”
While it’s important to celebrate the idea of consuming less, personal finance experts caution against taking this trend too far. Here are five ways to save with the underconsumption trend without compromising your lifestyle:
Reflect on your values
Embracing a frugal lifestyle that aligns with your values is key, according to Miranda. This involves understanding what is important to you, where you want to make changes, and what your financial goals are.
“Take a thoughtful approach,” Miranda advises. “Don’t just mimic what others are doing. Invest in what you truly need and find a way to make it work for you.”
In essence, she suggests, “Don’t blindly follow the ‘underconsumption’ trend.”
“It’s crucial to have a clear understanding of your values,” Stolarz emphasizes. For instance, if you value quality time with loved ones or travel experiences, you may choose to allocate more of your resources towards those areas instead of purchasing more material possessions.
Develop a personalized plan
Creating a spending plan that reflects your unique goals is essential, says Stolarz.
“It’s challenging to completely overhaul your spending habits, but starting small by identifying areas of overspending is a good first step,” Stolarz recommends. For example, if you tend to overspend on online purchases, you could temporarily halt those expenses or shift them to local in-person shopping instead.
While the focus of the “underconsumption” trend has mainly been on reducing purchases of cheap goods online, it doesn’t necessarily mean spending less overall, but rather spending wisely, explains Katherine Fox, CFP and founder of Sunnybranch Wealth in Portland, Oregon. For instance, you might choose to invest in a durable coat that will last for years instead of buying fast fashion items, or allocate more funds towards a hobby rather than disposable goods.
To make the underconsumption approach work for you, Fox recommends creating a tailored spending plan that allows you to prioritize what truly matters to you, rather than spending on unnecessary items. This may involve setting specific budgets or spending limits for different categories.
Don’t compare yourself to others
Comparing yourself to others on social media can lead to negative feelings, notes Miranda. “Your circumstances are unique and may not be the same as those you see online,” she points out. “Keep that in mind when receiving budgeting advice from social media influencers.”
Miranda advises taking what is useful from others but disregarding any rules or tips that don’t apply to your situation. She also suggests avoiding the stress and shame that often come from comparing yourself to others online.
Eliminate unnecessary expenses
With the rising costs of consumer goods, Jason Fannon, CFP and senior partner of Cornerstone Financial Services in Southfield, Michigan, recommends focusing on cutting expenses that have minimal impact on your daily life.
Fannon suggests reducing expenses such as monthly subscriptions, exploring better deals on auto and home insurance, and minimizing interest payments by comparing various loan options.
“All of this can be done without significantly altering your lifestyle,” he adds.
Strike a balance
When embracing the underconsumption mindset, it’s important not to be overly restrictive, according to Miranda. “Consider if this approach truly resonates with you. Don’t follow trends blindly; understand your motivations,” she suggests.
Likewise, Fannon advises against making sacrifices in the name of underconsumption that could negatively impact your well-being. For example, investing in fresh, nutritious food instead of cheaper frozen meals may be a worthwhile expense.
“You have to enjoy life and find a balance. You can’t save everything,” Fannon emphasizes. “It’s all about finding that middle ground.”