Why the ‘Underconsumption Core’ Explodes on TikTok
With rising inflation , rising home costs , and general panic surrounding a looming recession, the idea of buying less, spending less, and saving more has resonated with TikTok influencers. And it has a name: the “underconsumption core.” Here’s what you need to know about the internet’s latest finance buzzword and whether it makes any difference to your money mindset.
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As with “ loud budgeting ” or “ frugalism ,” the core of underconsumption is another buzzword for something that has always been around: frugality. But there do seem to be some benefits to this trend, such as maximizing what you already have and generally leading a more minimalist lifestyle. For example, in one mainstream video about underconsumption that has racked up 4.4 million views , TikToker @sophie_hinn shows how she makes her own dry shampoo from scratch, thrifts on her furniture, and shreds old towels to use as cleaning rags . Very few of us are likely to make our own shampoo, but nonetheless, consuming less is generally a good practice.
“While every new trend may have valuable takeaways, such as the “buy less and save more” ideology preached by the underconsumption core,” says Julie Guntrip , head of financial wellness at Jenius Bank , “personal finance advice should seen more often on social networks.” as input or inspiration rather than advice .” “Advice” can only really take place when someone knows you and your financial situation personally.
And if we just look at the “underconsumption core” itself, this trend is not all-out “snake oil”. This is truly a relief considering how TikTok is a never-ending stream of bad financial advice . Guntrip notes that “the concept appears to support a mindful and potentially more responsible approach to spending, which could be useful for people who want to change their spending habits.” Guntrip gives a few more examples: the idea of buying quality products that will last rather than disposable items, or even the practice of “staying in your lane” (rather than trying to keep up with friends or even social media in terms of consumption). ).
However, Guntrip makes a distinction between financial trends and financial well-being: “To improve overall financial well-being, a person would like to analyze many areas of their finances, including all major and non-essential expenses, debts, short-term and long-term savings, and more.” Following a trend, even a logical and useful one, does not mean that someone is completely concerned about their financial health. So while the “core of underconsumption” does concern something like consumption habits, true financial wellness will always be more comprehensive.
How a ‘core of underconsumption’ can help curb excess spending
Any financial trend that focuses on “less is more” can help curb excess spending by encouraging consumers to reconsider their spending habits. Of course, the most obvious extension of this trend would be to create a budget that works for you . And in the budgeting process, the first thing you start with is tracking your cash flow: money coming in and money going out. From here, you can create categories for your budget, determine your spending patterns and savings opportunities.
So, Guntrip explains, the core of underconsumption fits nicely into the outcome of healthy budgeting practices. “Rather than having strict rules to live by,” Guntrip says, “this trend can be a shift in thinking and approach to spending that can help a person cut back on certain spending categories or free up more funds for savings.”
Guntrip shares another trick to the budgeting process: You can save up funds for impulse spending, what we call a “splurge fund.” If someone has money saved up, they have the opportunity to experience the “rush” of an impulse purchase, but within a set dollar amount.
My favorite simple tip for avoiding unnecessary purchases is to write down the things you want to buy before you buy them. By reading through the items on this “shopping list,” you can make a more informed decision about what you really need. You may also find that after a few days, some items on your shopping list have lost their appeal.
How to Reduce the Impact on Your Money Thinking
Impulsive or even subconscious spending is a habit that can be difficult to break, but one of Guntrip’s approaches might be to “take a step back, look at the big picture and set some savings goals.” And those goals will look different from person to person. Maybe it’s a copy to take home, or maybe just for the weekend. The important thing is that having goals can help change the focus and help a person spend money more consciously. With every purchase the question arises: “ Is this more important than my goal?” »
“Having goals can also help with the influence reduction process because they can motivate someone to stay the course,” Guntrip says. Individual goals vary from person to person, and therefore following others’ “advice” on social media may become less relevant if the direction is not conducive to achieving the goal.
While you shouldn’t use TikTok as a replacement for financial advice, this particular trend can serve as inspiration for rebooting your finances , avoiding impulse purchases , and appreciating what you already have .