“Saving” Is Not a Smart Financial Hack
You may have seen the term ” thrifting ” on social media lately, supposedly used to save money. But despite its (sort of) catchy name, thrifting is just an updated version of an old bad habit: overspending for the sake of saving. And as always: TikTok will never bring you the financial freedom you’re looking for.
What is spawning?
Saving means the practice of spending more money upfront to presumably save more in the long run. For example, buying in bulk, choosing premium products over cheaper options, or spending money on an annual membership to get a discount.
While some of these tactics may make sense in moderation, saving takes them to the extreme. Paying $100 for an annual streaming subscription to save $8 per month is smart. But spending an extra $500 on a premium device you can’t afford in hopes of lowering your energy bills is a savings.
Rescue trap
The main problem with saving is that you still overspend and are likely spending more than you actually save. It’s easy to rationalize thrifting as a way to be frugal, when in reality it’s just a mental trick into forcing yourself to buy more than you actually need or can afford.
Smarter Spending Strategies
Whether you’re ignoring certain bad spending habits or falling victim to a broader lifestyle trend, most of us have a common goal: “spend less, save more.” Instead of giving in to spending habits like saving, focus on sticking to a realistic budget and cutting down on your current expenses . Look for ways to save that don’t require you to spend extra money.
One way to start with your specific spending goals is to physically write down the things you want to buy before you buy them . Use these bank statements to indicate which items are on your official “shopping list.” By reading through the items on this list, you can make a more informed decision about what you really need.
Bottom line
Saving puts the emphasis on spending rather than saving. Don’t fall for the fallacious logic that says you need to spend more in order to save more. True financial discipline comes from living within your means, curbing impulse spending, and finding smart ways to cut expenses rather than rationalizing going over budget.