Good and crazy ideas are everywhere on social media, even in the world of personal finance. Here are 10 personal finance trends that are becoming increasingly popular. Many of these trends are based on financial awareness, which is almost always a good idea no matter how much you earn or save.
1. Underconsumption nucleus
On social media, adding the word “core” to a word is a way to refer to an aesthetic or cultural movement. “Core” refers to a coming together around a common direction among like-minded people.
The core of low-consumption is a personal finance trend that revolves around buying less, or rather much less. Adherents of this trend take pride in fixing broken appliances, making clothes out of things already in their closet, and buying secondhand.
Consuming less means simplicity, sustainability and minimalism. It means what you need, not luxury or excess.
Note: Some people think this trend should actually be called “essential natural consumption” because it is perhaps a healthier and more sustainable way to live.
2. Noisy budget
Of all the personal finance trends listed here, the noisy budget is probably my favorite.
Budgeting is about feeling comfortable with financial goals, priorities, and boundaries and being able to express these ideas to friends and family.
For example, let’s say a friend invites you to dinner at an expensive restaurant that you “can’t” afford or could afford, but you have other spending priorities. Instead of declining the invitation or suggesting a less expensive place, you can practice high budgeting and explain why, too. You might say, “Thanks, I’d love to meet you, but spending that much money on dinner doesn’t align with my long-term financial goals. Why don’t we meet for coffee instead.”
Budgeting out loud isn’t about sacrificing or not having enough. It’s about focusing on what’s important to you. And that includes clearly articulating why you’re choosing not to spend money—even if you have the money.
There are some tangible benefits to a noisy budget, namely:
- It allows you to reframe declining an invitation or not buying something as a positive: Instead of feeling like you’re missing out, you can reframe it as a positive action that helps you achieve your long-term goals.
- It helps you stay true to your goals by adding accountability and support through your peer group.
- It normalizes and spreads healthy personal finance habits, and breaks the taboo around talking about money.
- It allows for a level of authenticity about the life you live.
Budgeting out loud isn’t about restricting your spending, it’s about knowing how you spend your money and not letting social pressures change that. And as a bonus, you can help others on their journey to financial security, too.
3. Remove the effect
I’m not above scrolling through social media, and I’ve bought some weird dresses and gifts as a result of influencers promoting their wares in my feed. Some of these purchases have brought me joy, while others have been a flop. There are smart, interesting influencers who have helped me become a better person. And then there are the stupid, insignificant ones who have surprisingly large followings.
I believe there is an influencer for everyone, including a new category: influence removers.
De-cluttering is how creators discourage their followers from buying certain products or following certain trends. Instead of promoting items as essential, they offer critical reviews or advice on why certain products aren’t worth the hype, which can save their audience money or encourage more thoughtful consumption.
This movement arose as a reaction to the overwhelming consumerism often driven by social media influencers, who regularly endorse a wide range of products.
De-influence encourages people to make more conscious and informed decisions, asking questions about the necessity and value of what they are buying rather than giving in to the pressure of trends and advertising. It can also include promoting alternatives such as secondhand shopping, DIY solutions, or simply opting out of consumption altogether.
4. Challenges of not spending
No-spend challenges call for eliminating all purchases (or all “non-essential” purchases) for a week, month, or even a year, putting money that would otherwise go toward Starbucks coffee, dinners out, and new clothes toward a long-term financial goal.
These challenges can make you think about what is essential. They encourage you to reframe what is important to you and allow you to really evaluate your spending.
February Economic
You’ve heard of Dry January, but what about Budget February? Budget February was a popular TikTok trend that encouraged people to save money for a 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 habits that will help you in the long run.
5. Don’t buy anything.
the Buy Nothing Project It is a global network of local groups that encourage people to share and donate consumer goods instead of buying them. The goal is to build communities based on trust and compassion, where people can help each other meet their needs and wants.
Free course It is another resource if you are interested in barter economics and reusing existing resources.
6. Personal Engagement Clubs
Creating or joining a club focused on personal finance is another trend.
Many people come together to discuss the challenges of ensuring they have adequate 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 create a club.
7. 100 Envelope Challenge
The 100 Envelope Challenge is a way to trick yourself into saving $5,000 over 100 days. The popular method suggests saving a certain amount (up to $100) in 100 different envelopes for 100 days. By the end of the 100-day period, you’ll have just over $5,000.
Here are some variations of the challenge:
- Have fun decorating envelopes to help you prepare for the challenge, or just number them.
- You can go digital: $1 the first day, $2 the second day.
- Or you can put all the envelopes in a bag and pull them out randomly. Whichever envelope you pull out is the amount you need to save that day.
This can be a good exercise for someone just starting out on their financial journey. Just remember that saving is important, but you also need to invest your money. (Stuffing it in envelopes won’t lead to the kind of long-term growth that builds wealth.)
8. Stuffing money
The money stuffing trend encourages people to withdraw cash and allocate it in envelopes for specific expenses.
Your money is divided into envelopes that represent your monthly expenses. You might have one envelope for groceries, another for gas, another for entertainment, and so on… When the money in one envelope is spent, you’re either done spending in that category for the month, or you need to borrow from another envelope.
While stuffing cash can be an effective way to promote disciplined budgeting, keeping that much cash around can be dangerous. And you don’t earn interest on that money.
9. Cleaning Death
In Sweden, the process of disposing of your belongings after retirement is called “death cleaning.”
The mission has been documented in a book, Swedish Cleaning After Death: How to Free Yourself and Your Family from a Life of Clutter By Margareta Magnusson, she writes: “Death cleaning is a permanent form of organization that makes your daily life run more smoothly.”
Getting rid of clutter has been scientifically proven to help you focus.
If you want your retirement to be meaningful, think about ways to get rid of things that don’t really matter to you. Learn more about the power of decluttering in retirement.
10. Visualization / Vision Boards / Imagining the Future
This trend has been around for a long time, and for good reason. Visualization can be a powerful tool for achieving your future goals. The concept is based on the idea that by vividly imagining the outcome you desire, you can influence your mindset, motivation, and actions, making it more likely that you will achieve those goals.
Here’s more:
Not a trend: Planning is here to stay, it works!
Many of these personal finance ideas are just passing fads or something to try for a while. You know what’s not a passing fad? Planning.
Studies have shown that managing a comprehensive financial plan increases financial confidence and leads to better financial outcomes. Use your new retirement planner to increase your experience, gain financial confidence, make more informed decisions, and improve your financial performance.
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