Overview
If you have social media accounts – Instagram, TikTok, and Facebook are some of the usual culprits – you are likely bombarded every day by so-called “influencers” and messaging pertaining to all areas of life, including personal finance. With everyone clamouring for your attention and critical thinking skills existing at a premium, how can you cut through the noise and identify what is worth listening to, and what isn’t?
In this article, we will review fourteen social media trends in personal finance. Is there any substance to these trends, or are they just meant to generate views and likes?
While social media personalities want to make personal finance look easy, the reality is far more nuanced. If you need quick funds to cover immediate expenses and/or are experiencing a cash shortfall between paycheques, apply for a personal loan online via Crediteck. We don’t check credit scores during the simple and quick online application process.
Trend #1: Underconsumption Core
What It Is: A flashy trend started by young people on social media, underconsumption core simply refers to making the best use of the items you already own, rather than buying new ones. It may involve continuing to use an old item or repurposing existing household items. When you do buy something, underconsumption core recommends that you look at its durability and quality over its flashy appeal and status-signalling properties.
Analysis: In broad strokes, this trend is not harmful in any way. The key is to remember that personal finance requires a multifaceted and disciplined approach, so simply adhering to underconsumption core is not going to be the magical solution to all your problems.
Trend #2: Deinfluencing
What It Is: This trend involves influencers advocating against purchasing certain products and services, whereas they usually do the opposite. Influencers may highlight overhyped products or advise more mindful or sustainable spending.
Analysis: In and of itself, this trend is not necessarily harmful. However, it raises questions about the broader culture, in which influencers seem to guide consumer behaviour, rather than consumers being able to make up their own minds. Are we able to think independently, or do we need advice even for the most basic and mundane decisions?
Trend #3: Minimalism
What It Is: Minimalism is something of a response to consumerism. It pushes back against the constant pursuit of “more” – specifically, more possessions. It advocates for simple and intentional living as well as ridding yourself of excess i.e. useless stuff you no longer need. Decluttering your space is supposed to help you find happiness and fulfillment.
Analysis: Like many such trends and movements, the danger is oversimplifying the answers. Everyone is going to have a unique and individual path to happiness and fulfillment, so simply ridding yourself of excess possessions may not be the silver bullet minimalists claim it is.
Trend #4: Sustainable Fashion
What It Is: Somewhat similarly to underconsumption core, sustainable fashion emphasizes durable and “green” fashion, which minimizes negative environmental impacts.
Analysis: It always pays to be mindful about what we choose to wear. Durability and quality should generally be a primary consideration, while it behooves us to reduce our environmental impacts. However, like most other trends, sustainable fashion is only one facet of sustainable personal finance.
Trend #5: Soft Saving
What It Is: Soft saving advocates for moderate spending without sacrificing all of your pleasures at once. It pushes back against ruthless saving practices and advocates for a more balanced approach, as some pleasure spending is necessary to enjoy your life. As such, it may be a more sustainable approach to saving.
Analysis: The reality is that your ability to engage in soft saving rather than ruthless saving will depend on your financial situation. Some people may not be able to indulge even in occasional pleasure spending due to constrained financial resources. On the whole, though, it is a good idea, promoting balance over extremes.
Trend #6: Slow Fashion
What It Is: This is another trend that pushes against consumerism and overconsumption. It emphasizes durable, socially just, and environmentally friendly fashion, rather than so-called fast fashion, which echoes the concept of fast food.
Analysis: This pragmatic trend represents a generally sound approach to fashion. Durable quality is certainly more beneficial than constantly replacing your clothes. Like most other trends, it is only one aspect of a multidimensional approach to personal finance.
Trend #7: Loud Budgeting
What It Is: This trend pushes back against conspicuous consumption, which emphasizes flaunting a luxurious lifestyle and signalling your status in order to improve your self-esteem. Loud budgeting involves people proudly displaying their approach to budgeting and saving money and may raise the status of budgeting, rather than that of overconsumption for the sake of making one feel better about oneself.
Analysis: All in all, this trend involves a healthy respect for budgeting. As such, it may help promote sound budgeting, rather than conspicuous consumption. In this era, individuals may feel compelled to overspend in order to signal high status, even when they don’t have the realistic means to do so. For these individuals in particular, loud budgeting may bring some much-needed relief.
Trend #8: Revenge Spending
What It Is: Revenge spending involves spending more because of a past period of hardship or restriction – or even to get over your ex. Personal finance is generally a matter of the head, not the heart. Therefore, revenge spending may not be the best approach to personal finance.
Analysis: Spending should not be driven by emotion. It should be driven by rational considerations. Therefore, revenge spending may be something of a toxic trend. Don’t buy something you can’t afford just to get over your ex. Buy something because you need it, and because it is within your budget. Money doesn’t care how you feel – numbers are numbers. Save your emotional impulses for more appropriate areas of life.
Trend #9: Intentional Living
What It Is: Intentional living goes beyond personal finance and encompasses a general approach to life that fosters conscious choices and adherence to clear personal values, rather than passively wandering through life. In terms of personal finance, intentional living results in making deliberate choices, rather than being carried away by impulses.
Analysis: As a general approach to life and personal finance, intentionality is generally preferable to impulsive and thoughtless decision-making. Once again, simply being intentional is not a magic solution – you need to mobilize multiple strategies to make the most of your life, including your finances.
Trend #10: Financial Independence, Retire Early (FIRE)
What It Is: Financial Independence, Retire Early (FIRE) is a movement dedicated to extreme saving and investing strategies with the goal of retiring as early as possible. Like most extreme approaches, it may not encourage a healthy approach to money. For some people, it may be achievable. For others, it may result in nothing but needless frustration. Balance is key.
Analysis: This trend may encourage unrealistic beliefs and expectations, which may result in disappointment if you fail to reach your goals. Rather than focusing on retiring at age 35, focus on building a career, multiple streams of income, buying index funds, and sane spending habits. Moreover, people who retire and then don’t do anything productive in their retirement are often found to die earlier than people who find ways to stay busy.
Trend #11: Side Hustle Culture
What It Is: Side hustle culture is the trend of pursuing additional income opportunities outside of your day job. This may involve freelancing, selling products online, promoting other companies’ products and services on your social media channels, artistic pursuits, tutoring, and more.
Analysis: While earning additional income is rarely a bad idea, the question is one of feasibility and sustainability. You may already have your hands full with your current job and other responsibilities outside of work. Adding more work onto your plate may cause overwhelming stress and leave you unable to keep up with your existing responsibilities. Therefore, be mindful and judicious in the side hustles you choose to take on.
Trend #12: Upcycling
What It Is: Upcycling riffs off of the standard concept of recycling and involves repurposing old items into something new and valuable. For example, you could repurpose an old T-shirt into a tote bag or fashion a chair from a discarded tire. It almost goes without saying that upcycling is intended to save the money you would otherwise spend on new items.
Analysis: Upcycling generally can be a good idea, but as with side hustles, the question is whether the effort is worth the reward. You may already be overextended with your existing financial responsibilities and unable to spare the mental and emotional energy for new pursuits. However, if you have the spare time and energy, upcycling may help reduce waste and make use of your creativity.
Trend #13: Low-Buy Challenges
What It Is: This trend bears some similarity to several other trends emphasizing careful and mindful spending. It involves using things you already own and reducing your unnecessary spending. Be mindful of what you do have and how to use it best. If you do shop, buy durable, quality items rather than flashy, short-lived items.
Analysis: It is never a bad idea to spend mindfully, rather than excessively. Once again, simply completing low-buy challenges will not magically solve your financial problems. A holistic approach is necessary to manage your cashflow effectively.
Trend #14: Decluttering Challenges
What It Is: This trend echoes minimalism by encouraging ridding yourself of excess stuff. Reducing your number of possessions, particularly those you no longer need, can help create a cleaner and nicer environment at home. This may help alleviate stress and direct your attention to more important matters, which, in turn, may result in managing your finances more responsibly.
Analysis: While generally ridding yourself of excess items is a good idea, it is just one facet of a multifaceted and holistic approach to managing your personal finances effectively.
Conclusion
In this article, we reviewed fourteen flashy social media trends in the realm of personal finance and responsible spending. While many of these trends impart valuable lessons, it’s important to understand that there are no silver bullets and simply adhering to minimalism or sustainable fashion, for instance, is not going magically to solve all your problems.
If you are faced with unexpected expenses and a cash shortfall between paycheques, apply for an installment loan online via Crediteck. We don’t check your credit score or credit report during our simple and quick online application process.
