Both good and crazy ideas abound on social media, even in the realm of personal finance. Below are 10 personal finance trends that have become wildly popular. Many of these fads are rooted in money mindfulness which is almost always a good idea no matter how much you earn or have saved.
1. Underconsumption Core
On social media, adding “core” to a word is a way of signifying an aesthetic or cultural movement. “Core” denotes a synergy around a trend that is shared by like minded people.
Underconsumption core is a personal finance trend around buying less, like a lot less. Adherents pride themselves on fixing broken appliances, making outfits from what they already have in their closet, and buying used.
Underconsumption is about minimalism, sustainability, and simplicity. It is about what you need, not about luxury or excess.
NOTE: Some people believe that this trend should actually be called “normal consumption core” since it is probably a healthier and more sustainable way to live.
2. Loud Budgeting
Of all the personal finance trends listed here, loud budgeting is probably my favorite.
Loud budgeting is about being comfortable with financial goals, priorities, and limits and being able to vocalize these ideas to friends and family.
For example, let’s say a friend invites you to meet for dinner at an expensive restaurant that you “can’t” afford or could afford, but you have other spending priorities. Instead of merely declining the invitation or suggesting a less expensive place, you could practice loud budgeting and also explain why you don’t want to splurge. You might say, “Thanks, I would love to meet up, but spending that much money on dinner isn’t in line with my long term financial goals. Why don’t we meet for coffee instead.”
Loud budgeting isn’t about sacrifice or not having enough. It is about focusing on what is important to you. It involves clearly vocalizing why you might choose not to spend money – even if you have it.
There are a few tangible benefits to loud budgeting, it:
- Enables you to actively re-frame declining an invitation or not buying something as a positive. Instead of feeling like you are missing out, you can recast it as an action that helps you achieve your financial goals.
- Helps you stay true to your goals by adding accountability and support through your peer group.
- Normalizes and helps to spread healthy personal finance habits, breaking taboos around talking about money.
- Enables a level of authenticity about the life you are living.
Loud budgeting isn’t about restricting your spending, it is about knowing how you want to spend your money and not letting social pressure change that. And, as a bonus, you get to help others in their journey toward financial security too.
3. Deinfluencing
I am not above social media scrolling, and I have have purchased a few dresses and gimmicky gifts as a result of influencers hawking wares in my feed. Some of those purchases have brought me joy, others were a bust. There are smart and interesting influencers that help make me a better person. There are also silly and inconsequential people with surprisingly large followings.
There’s an influencer for everyone I suppose, including a new category: deinfluencers.
Deinfluencing is where content creators actively discourage their followers from purchasing certain products or adopting spending trends. Instead of promoting items as must-haves, they provide critical reviews or advice on why certain products may not be worth the hype, potentially saving their audience money or encouraging more thoughtful consumption.
This movement emerged as a response to the overwhelming consumerism often driven by social media influencers who regularly endorse a wide range of products.
Deinfluencing encourages people to make more mindful and informed decisions, questioning the necessity and value of what they buy rather than succumbing to the pressure of advertising. It can also involve promoting alternatives like second-hand shopping, DIY solutions, or simply opting out of consumerism altogether.
4. No Spend Challenges
No spend challenges advocate eliminating all purchases (or all “nonessential” purchases) for a week, a month, or even a full year, and putting the money that would go otherwise go to Starbucks coffees, dinners out and new clothes toward a long-term financial goal.
These challenges can really get you to think about what is necessary. They encourage a re-framing of what’s important to you and enable you to evaluate your spending.
Frugal February
You’ve heard of dry January (no alcohol during the month). What about frugal February? Frugal February was a Tiktok trend that encouraged one month of belt tightening.
The idea behind both dry January and frugal February is that if you can commit to doing something for just one month, you might learn something and develop habits that will help you in the long run.
5. Buy Nothing
The Buy Nothing Project is a global network of local groups that encourage people to share and give away consumer goods instead of buying them. The goal is to build communities based on trust and empathy, where people can help each other fulfill their needs and wants.
Freecycle is another resource if you are interested in a barter economy and reuse of existing resources.
6. Personal Finance Clubs
Starting or joining a club focused on personal finance is another trend.
Many people are meeting up to address the challenges of ensuring they have enough savings, understanding investment options, and making informed decisions about their future. A retirement planning club or group can provide a supportive environment where members can share knowledge and make smarter financial decisions together.
Learn more about how to start a club.
7. 100-Envelope Challenge
The 100-envelope challenge is a way to trick yourself into saving $5,000 over 100 days. The wildly popular method suggests saving a certain amount (up to $100) into 100 different envelopes for 100 days. By the end of the 100-day period, you will have just over $5,000 set aside.
Here are a few variations on the challenge:
- Have fun decorating the envelopes to help you prepare for the challenge, or just number them.
- Go for 100 days straight. Or, contribute once a week or every 3 days. Choose a time period that seems manageable.
- You can go numerically: $1 on day one, $2, on day two, etc… Or, you can put all of the envelopes into a bag and draw at random. Whatever envelope you pull out is the amount you need to save that day.
This can be a good exercise for someone just starting their financial journey. However, remember that saving is important, but you need to get the money invested as well. (Keeping it in envelopes isn’t going to result in the kind of long term growth that promotes wealth.)
8. Cash Stuffing
The cash stuffing trend encourages people to withdraw cash and allocate it into envelopes for specific expenses.
Your money is divided up into envelopes representing your monthly expenses. You might have one envelope for groceries, another for gas, one for fun, etc… When the cash in one envelope is spent, you’re either done spending in that category for that month, or you need to borrow from another envelope.
While cash stuffing can be an effective way to promote disciplined adherence to a budget, it can be dangerous to have that much cash laying around. And, you aren’t earning interest on the money.
9. Death Cleaning
In Sweden, the act of paring down your belongings after retirement is called “death cleaning.”
The task was documented in a book, Swedish Death Cleaning: How to Free Yourself and Your Family From A Lifetime of Clutter by Margareta Magnusson. She writes, “death cleaning is a permanent form of organization that makes your everyday life run more smoothly.”
And, it turns out that de-cluttering is scientifically proven to help you focus.
If you want retirement to be meaningful, consider ways to get rid of what doesn’t really matter. Learn more about the power of decluttering for retirement.
10. Visualization / Vision Boards / Imagining the Future
This fad has been around for awhile, for good reason. Visualization can be a powerful tool for manifesting your future goals. The concept is based on the idea that by vividly imagining your desired outcome, you can influence your mindset, motivation, and actions, making it more likely for those goals to materialize.
Here is more:
Not a Trend: Planning is Here to Stay, It Works!
A lot of these personal finance ideas are fads or something to try for a while. Do you know what isn’t a fad? Planning.
Managing a holistic financial plan is proven to increase financial confidence and produce better financial outcomes. Use the Boldin Retirement Planner to increase your know-how, gain financial confidence, make more informed decisions, and do better with your money.
