Social media is full of ideas, both good and crazy, when it comes to personal finance. Here are 10 personal finance trends that are becoming super popular. Many of these fads have their roots in money awareness, and they’re almost always good ideas, regardless of how much you earn or how much you have saved.
1. Underconsumption Core
In social media, adding “core” to a word is a way of describing an aesthetic or cultural movement. “Core” implies a synergy of trends shared by like-minded people.
At its core, underconsumption is the personal finance trend of buying less—significantly less. Adherents take pride in fixing broken appliances, making outfits from items already in their closets, and buying second-hand.
Underconsumption means minimalism, sustainability and simplicity – it’s about what is necessary, not luxury or excess.
Note: Some believe this trend should actually be called “normal consumption core” as it is supposedly a healthier and more sustainable way of living.
2. Speak your budget out loud
Of all the personal finance trends mentioned here, my favorite is probably “Loud Budgeting.”
Budgeting out loud means coming to terms with your financial goals, priorities, and limitations and being able to communicate these thoughts out loud to friends and family.
For example, let’s say a friend invites you to dinner at a fancy restaurant. You “can’t” afford it, or you can, but you have other spending priorities. Instead of simply declining the invitation or suggesting a cheaper option, you can budget out loud and explain why. You could say, “Thanks. I’d love to meet you, but spending that much on dinner doesn’t fit with my long-term financial goals. How about we go for coffee instead?”
Budgeting out loud isn’t about making sacrifices or not having enough money. It’s about focusing on what’s important to you. Even if you have money, you need to say out loud why you choose not to spend it.
A loud budget offers several tangible benefits, including:
- You can proactively reframe turning down an invitation or not buying something as a positive thing. Instead of feeling like you’re missing out, you can frame it as a positive action that will help you achieve your long-term goals.
- The added accountability and support through a peer group will help you stay true to your goals.
- It helps break the taboo around talking about money and normalize and spread healthy personal finance habits.
- Achieve a degree of authenticity about the life you are living.
Making a budget out loud isn’t about restricting your spending. It’s about knowing how you want to spend your money and not letting societal pressures dictate it. And, as a bonus, you can help others move toward financial stability.
3. Loss of influence
I’m comfortable scrolling through social media and have bought a few dresses and fancy gifts thanks to influencers promoting their products on their feeds. Some of those purchases have brought me joy, while others have been failures. Some influencers are smart and interesting, making me a better person. Others are silly and insignificant people with astonishingly large followings.
There’s probably an influencer for everyone, including a new category called the de-influencer.
Deinfluence is when a content creator actively discourages their followers from buying certain products or following certain trends. Rather than promoting products as must-haves, they offer critical reviews and advice on why a particular product isn’t worth the hype, potentially saving their audience money or encouraging more thoughtful consumption.
The movement was born as a reaction to overwhelming consumerism, often driven by social media influencers who regularly promote a variety of products.
Deinfluence encourages people to question the necessity and value of what they buy and make more careful and informed decisions, rather than succumbing to trends and advertising pressures. It also involves promoting alternatives such as buying second-hand, DIY solutions, or simply forgoing consumerism altogether.
4. No Waste Challenge
The Zero Waste Challenge suggests that you refrain from all purchases (or all “non-essential” purchases) for a week, month, or even a year, and use the money you would have spent on a Starbucks coffee, a meal out, or new clothes towards your long-term financial goals.
These challenges will force you to think about what you really need, help you reconsider what is important to you, and truly evaluate your spending.
Saving February
You’ve probably heard of Dry January, but what about Frugal February? Frugal February was a TikTok trend that encouraged people to save money throughout the month.
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 a habit that will help you in the long run.
5. Don’t buy anything
of The “Buy Nothing” Project is a global network of local groups that encourage people to share and donate instead of buying consumer goods. The goal is to build communities based on trust and empathy, empowering people to help each other meet their needs and wants.
Freecycle If you’re interested in barter economies and reusing existing resources, this is another resource.
6. Private Fiancee Club
Starting or joining clubs focused on personal finance is another trend.
Many people are coming together to tackle the challenges of having enough savings, understanding investment options, and making informed decisions about their future. Retirement planning clubs and groups 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 in 100 days. This hugely popular method suggests saving a set amount (up to $100) in 100 different envelopes over 100 days. After the 100 days are up, you’ll have saved a little over $5,000.
There are several variations of this challenge:
- Have fun decorating and numbering the envelopes to help prepare for the challenge.
- In numbers, on day one it would be $1, on day two it would be $2.
- Or you could put all the envelopes in a bag and draw one at random – whichever envelope you pull out will be the amount you need to save for that day.
This is a good exercise for those just starting to learn about money. Remember, while saving is important, you also need to invest your money (keeping money in an envelope will not lead to long-term growth like increasing your wealth).
8. Cash stuffing
The cash stuffing craze encourages people to withdraw cash and allocate it in envelopes for specific expenses.
Your money is separated into envelopes that represent your monthly expenses — you might have one for groceries, another for gas, another for entertainment, etc. Once you’ve used up the cash in one envelope, you’re done spending in that category for the month or you have to borrow from another envelope.
While hoarding cash can be an effective way to stick to a strict budget, it’s risky to let that amount of cash sit around, and you won’t earn interest on the money.
9. Postmortem Cleanup
In Sweden, the act of sorting out your possessions after retirement is called “de-cleaning”.
This work was recorded in a book, Swedish Death Sorting: How to Free Yourself and Your Family from a Lifetime of Clutter By Margaretta Magnusson. She writes, “Posthumous cleaning is a permanent form of organization that makes daily life run more smoothly.”
And it’s scientifically proven that being organized can improve your focus.
If you want to make the most of your retirement, consider how to get rid of things that aren’t truly important. Learn more about the power of decluttering in retirement.
10. Visualization / Vision Boards / Imagine the Future
This trend has been around for a while now, and for good reason: visualization can be a powerful tool for manifesting your future goals. The concept is based on the idea that vividly imagining your desired outcome can influence your mindset, motivation, and behavior, making your goal more likely to come true.
For more information:
It’s not a trend: planning is here to stay and it still works!
Many of these personal finance ideas are just fads or things you try for a while. You know what’s not a fad? A plan.
Managing a comprehensive financial plan is proven to increase financial confidence and improve financial outcomes. With NewRetirement Planner, you can increase your know-how, gain financial confidence, make more informed decisions, and make your money go further.
