Cutting back on spending has become quite the fashionable move these days. Across social media, influencers are advocating for a more minimalist lifestyle. They’re into thrifting, embracing no-buy challenges, prioritizing durable goods, and guiding their followers on how to do the same, all while using the hashtag “#underconsumptioncore.”
Dana Miranda, the author of “You Don’t Need a Budget” and writer of the “Healthy Rich” newsletter on Substack, highlights a rising conversation opposing overconsumption. She explains, “We have easy access to so much, even items we don’t truly value. It’s clear we don’t need all these possessions cluttering our lives.”
Adding to this, Kasia Stolarz, a certified financial planner from Halifax, Nova Scotia, notes that these possessions often “fall short of making us as happy as we anticipated.”
Although personal finance experts praise the idea of consuming less, they caution against taking this conscious spending trend to extremes. Here are some strategies to embrace this underconsumption movement without negatively affecting your lifestyle:
### Tune into Your Values
A healthy approach to spending less hinges on aligning it with your personal values, says Miranda. This involves reflecting on what matters to you, contemplating changes, and setting your goals. “Adopt a mindful attitude,” advises Miranda. “Don’t just copy what others are doing mindlessly. Focus on understanding your actual needs and find your unique way to meet them.”
In essence, Miranda emphasizes, “Don’t simply follow whatever ‘hashtag underconsumption’ dictates.” Stolarz echoes this with, “Getting a solid grasp on your values is crucial.” For instance, if family time or travel is important to you, you might choose to allocate more resources there instead of continually acquiring new things.
### Formulate a Custom Plan
Effective spending starts with crafting a plan tailored to your individual aspirations, Stolarz suggests. “Completely rebooting your spending habits is tough, but you can start small. Pick one area where you feel you’re overspending,” she advises. Maybe it’s online shopping you want to cut back on, so you might decide to halt it temporarily or switch to supporting local stores.
This underconsumption trend often targets reducing purchases of inexpensive online merchandise. As Katherine Fox, CFP and founder of Sunnybranch Wealth in Portland, Oregon, notes, it’s not necessarily about spending less overall but reallocating funds differently. For example, opting for a durable coat over fast fashion or investing in a hobby instead of disposable goods.
Fox suggests personalizing this trend by creating a “spend-less plan” that channels money towards what’s truly important to you, avoiding unnecessary purchases. This might involve setting strict budgets or spending caps for certain categories.
### Steer Clear of Comparisons
Social media encourages comparisons, which can lead to self-doubt, Miranda points out. “Remember, your circumstances are unique, unlike the seemingly perfect picture painted by someone online who might earn significantly more,” she warns. “Factor this in when considering online budgeting advice.”
Miranda recommends retaining what resonates with you and ignoring advice that doesn’t align with your situation. Importantly, strive to dodge the “stress and shame” triggered by social media comparisons.
### Trim Non-Essentials
With rising costs, Jason Fannon, CFP and senior partner of Cornerstone Financial Services in Southfield, Michigan, advises cutting down on items that don’t significantly affect your daily life. Fannon suggests reevaluating “monthly subscriptions, exploring better deals on auto and home insurance, and minimizing interest payments by comparing loan options.”
He assures, “This approach allows you to save without drastically changing your lifestyle.”
### Achieve Balance
When adopting underconsumption, it’s easy to become overly frugal, Miranda cautions. “I encourage questioning whether this trend genuinely speaks to you. Don’t engage just because it’s fashionable—explore your motives,” she advises.
Likewise, Fannon warns against sacrifices for the sake of underconsumption that might harm your well-being. Spending more on fresh, nutritious foods instead of cheaper frozen options might be worth it. “Living and enjoying life is crucial. You can’t save everything,” Fannon insists. “It’s about striking a balance.”
