Overview
It seems that every day, there is a new social media trend. We’ve identified ten social media trends in personal finance. In this article, we will review these trends and consider whether they’re worth your attention.
While social media stars may advocate for flashy gimmicks and unrealistic lifestyles, sometimes, you simply need quick funds to cover urgent expenses. You can apply for a personal loan online via LendProConnect. We don’t check credit during the simple and quick online application process.
Trend #1: Underconsumption Core
Meaning: Underconsumption core refers to refraining from new purchases in favour of continuing to use or repurposing existing household items.
Helpful or Not? It generally behooves us to spend mindfully and only when there’s a need to do so. Practicing underconsumption core long-term may result in additional savings due to fewer unnecessary purchases. Therefore, it may be considered a helpful mindset.
Trend #2: Soft Saving
Meaning: Soft saving emphasizes a balanced approach to saving, which allows for some pleasure spending. It’s unrealistic to adhere to a strict budget without any indulgences.
Helpful or Not? A balanced approach to saving may be more sustainable in the long run than aggressive saving or budgeting. However, financial necessity may force us to cut back on our spending more than we’d like. Therefore, this financial trend is moderately helpful.
Trend #3: Slow Fashion
Meaning: Slow fashion refers to prioritizing high-quality, durable clothing and fewer new purchases over constantly replacing clothes. As such, it echoes underconsumption core in some ways, encouraging more mindful and restricted spending habits.
Helpful or Not? This trend is generally helpful, especially for those who feel pressured by social media to overspend on clothing and luxuries in an effort to signal high status.
Trend #4: Money Diaries
Meaning: People share their spending habits online in an effort to encourage open conversations around money.
Helpful or Not? This one’s a matter of taste. While some people are chronically online, oversharing every little detail of their lives, others prefer to keep matters private. Generally, you should not feel pressured to log your monthly spending online. It may be helpful for some, but for many, it’s not necessary.
Trend #5: Deinfluencing
Meaning: Deinfluencing is the opposite of influencing, meaning that influencers are advocating against, rather than for, the purchase of certain products.
Helpful or Not? It may be helpful for some, but the deeper question is whether we should base our purchasing decisions on influencers to begin with, especially for things we don’t need/mere status-signalling luxuries. Make up your own mind about the items and services you need or don’t need in your life.
Trend #6: Minimalism
Meaning: Minimalism refers to living a simpler, more intentional life with fewer possessions. It emerges in opposition to consumerism, which encourages obtaining more and more items, seemingly without end.
Helpful or Not? Having a minimalistic approach to life may result in buying fewer unnecessary items and reducing the clutter in your home, which may assist with managing your cashflow effectively. Therefore, it may be considered generally helpful.
Trend #7: Revenge Spending
Meaning: Revenge spending involves spending more in response to a period of restriction or hardship, in order to console yourself.
Helpful or Not? It may be emotionally helpful, but rationally, you should not increase your spending based on impulses or emotions. It may encourage excessive spending and therefore be less than helpful.
Trend #8: Loud Budgeting
Meaning: Loud budgeting emerged in opposition to quiet luxury. The term was first used jokingly by comedian Lukas Battle in 2023 but has since been taken up by millions of TikTok users. The message of advocating for your financial needs and rejecting spending on certain occasions, has gained wide traction and acceptance.
Helpful or Not? While it started out as a joke, it can be helpful to advocate for your budgeting needs openly, without hiding your need for saving.
Trend #9: Intentional Living
Meaning: Intentional living refers to living life based on your beliefs and values, rather than aimlessly drifting around. This encompasses your approach to personal finance as well, encouraging you to make mindful and deliberate, rather than impulsive, money decisions.
Helpful or Not? It is generally helpful to have a well-considered approach to spending, rather than spending impulsively or irresponsibly.
Trend #10: Financial Independence, Retire Early (FIRE)
Meaning: Financial Independence, Retire Early (FIRE) refers to pursuing extremely aggressive saving and investing strategies in order to retire as early as possible.
Helpful or Not? It may not be practical or realistic for most people to retire young, no matter how aggressively they pursue this goal. Therefore, it may be a counterproductive trend, especially when it encourages unrealistic goals and aspirations.
Final Thoughts
Anyone who has social media is likely inundated with financial advice and exposed to unattainable lifestyles. While it’s good to have aspirations, it’s important to check the content for practicality and relevance.
It’s not always about gimmicks and trends. If you need quick funds, simply apply for a personal loan online via LendProConnect. We don’t check credit during the simple online application process.
