Retirement Guru: Embracing Underconsumption
In a world where consumerism has long been the norm, there is a gradual but perceivable shift. A growing number of people, particularly in developed economies, are embracing the concept of underconsumption — spending less despite having the financial capacity to spend more. This trend offers many potential benefits to both individuals and society at large.
What’s Driving Underconsumption?
Experts point to several factors fueling this shift in behavior:
Changing Consumer Values. More people are prioritizing experiences over material goods, focusing on sustainability and embracing minimalism. It’s not just about owning things anymore. It’s about meaningful living.
Debt Aversion. The desire to reduce debt and build up savings is stronger than ever. With rising living costs and financial instability, many are choosing to secure their financial future instead of splurging on non-essential items.
Demographic Shifts. Aging populations, smaller households, and declining birth rates are all contributing to less demand for consumer goods. As family structures change, so do spending patterns.
Digitalization. The rise of online shopping, streaming services, and social media has reshaped traditional consumption. People are finding more affordable or even free ways to enjoy entertainment and convenience.
