Increasingly more wealthy individuals have started to adopt an ‘underconsumption’ lifestyle, whose purpose is to marginalize frugality, minimalism, and long-term financial security, early retirement, and ultimately financial independence, in an era characterized by consumerism. Are you ready to take the plunge?
What is ‘Underconsumption’?
Essentially, underconsumption refers to deliberate cutdown of discretionary spending, opting for buying second-hand products, home-cooked meals and refraining from unnecessary purchases. Such lifestyle trends have been trending on TikTok, with users sharing their frugal habits under hashtags such as ‘underconsumption core’.
Some simple examples!
People like Shang Saavedra, author and entrepreneur, represent this movement. Against a multi-million-dollar net worth, she and her family live a life of simplicity in Los Angeles: a 16-year-old used car and shops at discount supermarkets. Their children wear hand-me-downs and engage in cost-free activities, showing the family takes this all very seriously.
Similarly, Annie Cole, a 36-year-old personal finance expert, maintains household expenses well below the national average by adopting minimalist practices. She has sold her car, batch cooks meals, and shops for clothing at thrift stores, enabling her to work part-time and enjoy a semi-retired lifestyle.
It’s not just the United States, other countries too are following suit
This trend is not confined to the United States. In India, affluent individuals are also gravitating towards minimalism, driven by concerns over environmental impact and a desire for a more meaningful life. The digital age facilitates this shift, allowing for decluttering through digitalization and the adoption of pay-per-use models like ride-sharing and furniture rentals.
Underconsumption questions the traditional markers of wealth. It clearly suggests that real freedom through finances emanates from mindful consumption and intentional living, not extravagant spending. By giving financial security and personal fulfillment priority over material possessions, individuals redefine success and, in one fell swoop, pave the way for sustainable living.
