The newest generation isn't chasing the ladder of ultimate success and riches anymore. They are just trying to earn enough to live comfortably and splurge on small luxuries.
It seems that the newest generation is not chasing after heaps of wealth anymore. Neither are they accepting the demands of hustle culture. Instead, Gen-Z is focusing on something that has been dubbed as "soft saving" or "soft money," which involves an individual designing a budget that caters to making them feel good. The hustle and grind mentality, which has been preached to the previous generation in order to survive with the changing economy, is something the Gen-Z roll their eyes at.
The "soft saving" or "soft money" method has made Gen-Z embrace a "softer life," where they only make choices to allow their lives to become easier. This generation is not concerned about a towering bank balance to find happiness. They are happy with their $6 coffee in the morning and are not ashamed to share their humble expenses on social media. It is safe to say that this "soft saving" trend has taken over platforms like TikTok, YouTube and Instagram. One of the leading creators taking part in this trend is ex-Microsoft professional and sales engineer Hosanna Hali–who goes on TikTok by @thetechcornr.
Hali, a TikTok creator who is making regular videos on her personal approach to money by "soft saving," recently had a chat with news.com.au and explained her budgeting hacks and tips. "It is picking an activity that you know makes you feel so much better about yourself and having a monetary value attached to it," Hali told the news outlet.
Some commentators on TikTok also left their opinions on her video. @effiechica wrote, "I won't say I'm lazy, I just don't want to be stressed out, I want to make comfortable money, comfortably." @shuri._ commented, "Exactly, when I see finance bros make fun of people for not wanting to choose investment banking for a healthy balance, I'm so confused." @theeeitgal added, "Wow, beautifully said because this is me so bad."
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However, financial advisor Alex Jamieson believes that "soft saving" could become an issue for Gen-Z in the future, as reported by the outlet. "It is a $270,000 decision." "As you progress through life, your cash flow gets restrained. I think you have to be kind to your future self." Jamieson also adds that if an individual focuses hard on their savings while they are still in their 20s, then they should be capable of buying property for $500,000 by the time they hit their 30s.
By his calculations, this should increase by 4% over the next ten years and as a result, the property owner could make a rough profit of $270,000. Jamieson explains that an individual in their 20s mostly does not have a family to support or a mortgage to service. So this is the ideal time for them to save as much as they can. "Life expectancy is pushing out – I wouldn't be surprised with self-savings if they can't retire until they are in their eighties," he adds, fearing that Gen-Z will have to continue working for longer years than their previous generations.
Finder's money expert Sarah Megginson also mentioned that Gen Z are not interested in saving as much as their parents or grandparents did. "It's always been the case that younger generations tend to spend their money rather than save, but Gen Z is perhaps living the you-only-live-once life more deeply than their parents and grandparents did when they were younger," she revealed to the outlet. "It used to be a badge of honor to work long hours and commit to the grind to get ahead financially. Now, priorities are changing and younger workers are putting their mental wellbeing first, refusing to work themselves to the bone," she concluded.
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