Gen Z Flexes Their Frugality And I'm Here For It
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Move over, loud budgeting. There's a new personal finance trend in town, and it's getting millions of views on TikTok, and it's called underconsumptioncore. And it's one of the ways Gen Z is dealing with inflation, apparently. So what is it, and can it actually help you save money? We're going to break it down in today's video, and I'll share some of my own tips to help you become a smart spender. But before we jump into underconsumptioncore, make sure you hit the like and subscribe buttons to make sure you don't underconsume my videos. Okay, it was a stretch, but...

Here we are. Now, for those of you who are still afraid to download TikTok, under consumption core is a trend that's all about buying and using only what you need. What a concept. And TikTokers have been posting videos showcasing the ways they're doing this. Things like using only one water bottle, wearing the same clothes for years. You get the idea.

It's basically a form of minimalism with financial and environmental benefits. Use less stuff, spend less money, create less waste, yada, yada, yada. Makes sense to me. And I know Captain Planet would be on board if he hadn't died from carbon emissions back in 92. RIP Cap. I am declaring a moment of silence. He was in my top five captains, honestly. He goes Planet, Hook, America, Kangaroo,

Crunch. From least favorite to most favorite. Crunch being at the top. Anyway, to give you an idea of what this trend entails, let's look at a few TikTok, shall we? Here's one from Sophie Hinn. Wow. Wow. Beautiful. Oh. Grandpa's canning jars. Dog bowls.

I was with her up until the cans and bowls. Listen, that's decades old. Just let's get some new cans and bowls here. That's disgusting. She may have gone too far. But some good examples of ways to be frugal and save. And I call this just being smart with your money. And A plus for just vibes. Next one is from Shelbiz Lee. Let's see what she has to say. Hi. One in, one out. Broken mirror. No bed frame. Kindergarten beach towel.

Okay, I like some of this. And the most impressive part is the kindergarten beach towel. How have you hung onto that that long? And just one question, who gives a kindergartner a beach towel as a graduation gift? That's insane. Speaking of insane, empty walls can be a vibe. Little insane asylum-y to me though. Gotta have something on the wall. Other than that, great job. Let's do one more just for kicks. Looks like a normal kitchen. Okay.

all right spices impressive fruit loops art okay hand-me-downs looks like a normal fridge with a bunch of okay it's a lot of magnets the only food cabinet okay

Okay, this one was less impressive. I mean, she just had a normal amount of stuff, but good for her for reducing, reusing, and recycling. Look, the truth is only using what you need is not a new concept. It's what Graham Graham and Pop Pop did back in the day. And it's sad that we've become such a consumerist culture that we needed a TikTok trend just to go back to not being super wasteful. Now, minimalism and frugality have been around for a long time. So why is this popping off right now? Well, one reason is inflation.

high home prices, and the rising cost of living. People are feeling that crunch, and the only one that can save us is a Cap'n. - I'm in love with a cartoon character. - But seriously, when money's tight, you gotta look for ways to cut back and save, and under consumption core hits that nail right on the head, so kudos to that. And it makes saving money look cool by romanticizing being frugal and middle class and just putting on some Norah Jones and vibing. And I think this trend is also part of a bigger pushback on consumerism and influencer culture, which I can totally get behind.

I mean, TikTok has basically become the modern day QVC if you scrolled it lately. You got TikTok shop every other video constantly pushing supplements and online courses and skincare products and mystery boxes. Just tell me what's in the box. Tell me what's in the freaking box. I'm sick of this. Enough of the silliness.

So trends like de-influencing and under-consumption core have become the response. And as a personal finance guy, I love to see it. Because when you get control of your spending and you live on less than you make, it frees up more money for saving, investing, and giving. You know, stuff that matters more than stuff. And this creates financial margin, and that is the key to building wealth. Now don't get me wrong, I love stuff. Some of my favorite stuff happens to be stuff.

But the problem is, buying stuff is never a path to a better life. And if you don't believe me, check out what Harvard professor Arthur Brooks told me about money and happiness right in this very studio. It turns out there's five things that you can do with your money. You can buy stuff, you can buy experiences, you can buy time, you can give it away, or you can save it. Those are the only things you can do with your money, right? Four of them will bring you happiness, and one won't.

Your brain is telling you to do the one thing that won't bring happiness, which is to go buy stuff. The man's got a point. Thanks for that pro tip, Doc. It just hits different coming from him. Now, in my book, Breaking Free from Broke, I outline a simple plan you can use to help you make smart purchases. And guess what? You don't even have to buy the book to find out what it is because I'm going to tell you in this video. I don't gatekeep. You're welcome, Shel Bisley. That's wonderful. Thank you. But first, let's talk about what you can do with all the money this plan is going to save you.

If you're tucking away a good amount of cash for a used car, a down payment on a house, an emergency fund, or a girl's trip to Cedar Rapids to see where Crunch Berries are made, your money should be working for you. And for that, I recommend a high-yield savings account like the one offered by Laurel Road, one of the sponsors of today's video. Right now, your account balance earns 4.8% APY. Plus, there's no minimum balance required to open an account, your deposits are FDIC-insured, and there's no hidden fees. If you want to learn more, go to laurelroad.com slash george, or just click the link in the description.

in the description. And before we get to the smart spender plan, I want to share a very specific way to save some money on your phone plan. And that's by switching to Tello, another sponsor of today's video. They've got phone plans as affordable as five bucks and the unlimited everything plan is just 25 bucks. There's no contracts, no sneaky fees, and you can upgrade or change plans whenever you want.

My family uses Tello, and if it's good enough for the camels, it's plenty good for you. They've also got really cheap international roaming, which would have really come in handy this past summer when you went to Paris to watch break dancing. Regrets. Go to tello.com/george and you'll get an extra five bucks off the unlimited data plan for your first month of service. Or just check out the link in the description below. Okay, so if you really wanna be a smart spender, check this out. That's a handy little plan I came up with to help you make smart purchases. And it's an acrostic that spells out the word smart, because I aim for cute.

Bye.

So what does SMART stand for? Well, the S is for self-awareness, the M is for motive, A for affordability, R for research, and T for timing. And the process here is simple. If you can answer five questions with a resounding yes, then you can make that purchase with confidence and intentionality instead of impulse and regret. So let's start with self-awareness. The question here, will this add value to my life? Ask yourself, will I actually use this thing? Not just like once, but often enough to get your money's worth. If you don't consistently use it, I would rent or borrow it instead.

Next up, M for motive. Ask yourself this, am I buying this for the right reason? What's driving the decision here? Is it a sense of urgency from slick marketing? Is it pressure from friends or family? Is it retail therapy because you're sad or tired or you had a long day at work and you deserve it? Or maybe it's driven by insecurity or the need to impress someone. Whatever it is, you gotta ask yourself, if nobody sees this purchase, do I still want it? And if you're honest with yourself, you'll abandon cart at this very moment.

Next up, affordability. Ask yourself, is this in my budget? Here's a wild thought. If America answered this correctly, we would be $0 in consumer debt. If you can't pay for it in cash today, then you don't buy it today, period. No monthly payments, no debt. Pay for it in full or wait until you have the money to cover it. Next up is R for research. Is this the best option?

retailer and price. Most people overpay and have regrets because they're not doing the research. So don't skip this step. Compare prices online, search for promo codes, ask for discounts, use a coupon, look up price matching policies, check in the clearance section first, just in case. And when it makes sense, buy it used instead of brand new, except socks and underwear. Don't be gross. Once again, things that could have been brought to my attention yesterday.

Just simply slowing down and doing some homework can help you save big money. And lastly, the T is for timing. Is now the right time to buy it? This is all about opportunity cost. What are you giving up by making this purchase? If you spend $100 here, you can't spend $100 on this. For example, could the money be better spent on an experience, an investment, or paying off consumer debt? P.S. The answer is always

always paying off consumer debt if you have any. So look at your priorities, your budget, and your financial goals and decide if that money would be better spent somewhere else right now. So there you go, five simple questions. If you can answer yes to all five, you can confidently make that purchase. And if you answer no to any of those questions, it's a no or at least

and not now. If you want to know more about how to avoid all the marketing gimmicks and financial traps out there, be sure to check out my book, Breaking Free From Broke, the ultimate guide to more money and less stress. You can get your copy with the link in the description below. And yes, I always have a copy in my jacket. Be prepared. And if you're looking for more ways to be frugal, check out this next video to see 17 things frugal people refuse to buy, or click the link in the description below. Thanks for watching. We'll see you next time.