The Underconsumption Trend: Embracing 'Less is More' to Improve Emotional and Financial Health

The Underconsumption Trend: Embracing 'Less is More' to Improve Emotional and Financial Health

Did you know the average American household contains 300,000 items and that we consume twice as many material goods as we did 50 years ago? This could be at least part of the reason why 54% of Americans report  feeling overwhelmed with clutter and 22% are overwhelmed by credit card debt.

Simply put, we’re consuming more than we used to and its beginning to have an impact on our emotional and financial health. This is likely the reason for the “Underconsumption Core” trend  you may have recently seen on social media.  The trend is gaining traction because it celebrates a “less is more” lifestyle on platforms that are traditionally used to influence followers to buy more goods and services.

In this article, we’ll help you understand the underconsumption trend as well as commonly overconsumed items, why people buy so much stuff, the benefits of consuming less, and tips to help you reduce your consumption.

What Is Overconsumption?
For this article, ‘overconsumption’ means:

• Buying more of something than you need.
• Buying more of a product than you can use before it expires.
• Buying more than you can afford.

It’s important to note any gender or age group can overconsume, not just stereotypical shopaholics. 

What Is the Underconsumption Trend?
Much like living a minimalist lifestyle, the underconsumption trend seeks to inspire people to purchase, consume, and live with less while still meeting all their basic needs. Many would argue underconsumption is considered “normal” consumption because it encourages people to use what they need, when they need it, and only if they can afford it.

Those following this trend celebrate having furniture in their homes that is handed down  or purchased second-hand. They showcase closets with minimal amounts of clothing and shoes, and vanities that only contain skincare, cosmetics, and fragrances they use every day. Their kitchen cabinets are not filled with unused dishes, mugs, water bottles, or small single-use appliances. Their homes are free of clutter and decorated using simple, inexpensive items such as houseplants and thrifted treasures. They purchase more of an item only when they run out and there are no stockpiles of anything waiting to be used.

What Are Commonly Overconsumed Items?
Just about any product can be purchased in excess. Here are some products commonly purchased in excess:

• Personal care products such as  shampoo, soap, makeup, skincare, scented lotions, perfume, and cologne. The average adult uses only 12 individual personal care products per day, but the average woman owns 40 individual make-up items alone. Many of these products have a shelf life of six to 12 months and often expire before they can be used.
• Clothing including apparel, coats, and shoes. The average person has 148 items in their wardrobe, and the average household spends about $1,434 per year on clothing.
• Accessories such as jewelry, hats, and purses. Studies show the average man owns 11 hats which cost an average of $25-$40 each, and the average woman owns 11 handbags that cost $160 each on average.
• Dishes including the latest water bottles, coffee mugs, glasses, or dinnerware. For example, the average American owns 7.24 reusable water bottles, many which cost $50 or more.
• Children’s items such as stuffed animals, toys, books, puzzles, and even clothing. The average 10-year-old has 238 toys but only plays with 12 of them on any given day.
• Food that that could not be consumed before their expiration date such as produce, meat and spices. It is estimated that the average American throws away $1,300 worth of food each year because it has expired or gone bad.

Why do People Consume So Much Stuff?
There are many reasons people buy more than they need or can afford. Examples include:

• To “keep up with the Joneses.” Nearly 30% of Americans feel pressure to keep up with the lifestyle of others.
• For retail therapy.  62% of shoppers have purchased something to cheer themselves up or to compensate for negative feelings.
• To feel or appear successful. Nearly 40% of Americans report overspending to try to impress others.
• To be happier. Many people think buying a bigger house, nicer car, yet another outfit, etc. will make them happy.
• For fear of missing out. Many don’t want to be the only person that doesn’t have the latest new gadget, so they buy one even though they don’t need it.
• Advertising, marketing, and social influence. 49% of all consumers make daily, weekly, or monthly purchases because of influencer posts.
• Uncertainty about the future. People will buy items in excess if they fear they will run out or won’t be able to buy it in the future. For example, the toilet paper shortage during the Covid-19 pandemic.
• Due to a struggle with mental illnesses such as compulsive shopping disorder, bipolar disorder or hoarding disorder.

What Are the Benefits of Consuming Less?
There are many benefits to underconsumption, including:

• Saving money by not spending on unnecessary items. Not only will you have more money to set aside for a rainy day, but it will also  help you incur less debt.
• Less “stuff” laying around your home.
• Less anxiety caused by clutter or debt accumulated from over purchasing.
• Less waste which has a positive impact on the environment.

How Can You Consume Less?
Consuming less is a simple concept yet can often be difficult to implement. It starts with good habits and a conscious effort to evaluate every purchase.

• Create a budget and follow it. Setting spending limits is a great first step to buying less and will help you only buy what you can afford.
• Limit  time on social media to help reduce your chances of being influenced to buy something you don’t need or can’t afford.
• Cancel subscriptions for products and only purchase them as you run out, even if you end up losing a “subscribe and save” discount. Often, subscription items arrive well before we run out, leading to an eventual surplus in our homes.
• Commit to only buying more of an item when you run out. Don’t buy another tube of toothpaste until your current tube is nearly empty. Or, if you have five bottles of cologne at home, don’t buy a new bottle until all five of your current bottles are empty.
• Before purchasing anything new, ask yourself if you really need it or do you already own something that will fit its purpose? For example, do you really need a new outfit for the upcoming work banquet, or do you already own something that you can wear?         
• Before purchasing an item, ask yourself why you are buying it and if the item will truly fit that purpose. Will buying a new purse really ease your heartache or is it just a Band-Aid that will wear off by tomorrow?
• Before making any purchase, ask yourself if you really need it AND if can you afford it?
• Considering using second-hand or thrifted items to cut down on costs and waste.

The underconsumption trend is something everyone can participate in. Doing so will have many emotional and financial benefits. It starts with making a conscious effort to take control of your finances and spend less. If you would like help creating a budget, a Personal Banker from FNBO can help.  Call or stop by a branch location today.