Rebecca Goodwill. REUTERS\/Rebecca Goodwill<\/p>\n
During the COVID-19 pandemic \u2014 a time when people were panic buying toilet paper and hand sanitizer<\/a> \u2014 many were also ditching materialism<\/a>. For Rebecca Goodwill, a 35-year-old personal finance writer based in Norfolk, England, the global health crisis was a catalyst for her to buy less and save more. Since 2021, she\u2019s saved and invested an average of 2,000 pounds ($2,660) a month. That discipline has paid off: Today, she estimates her investments to total half a million pounds. <\/p>\n Back when Goodwill worked a nine-to-five job, splurging on clothes was second nature \u2014 a habit carried over from her days as a fashion communications student. “Every single season, it was a whole new wardrobe,\u201d she says. “It was just so exhausting.\u201d The seasons of life played a role, too. Goodwill noticed that her spending often coincided with major life moments, leading to \u201cvery emotionally driven” decisions. <\/p>\n A woman reaches into her handbag as she walks past a video display in the shop window of a Mulberry store in central London. REUTERS\/Andrew Winning <\/p>\n Goodwill has since cut back on clothes, as well as home decor and TV subscriptions. Minimalism, she says, is key. “My life now looks, on the outside, a lot more basic. I’m really not afraid to do those things like repeat-wear outfits.” <\/p>\n Equipped with self-taught financial skills, Goodwill initially thought her money would grow quickly after learning that diversifying investments was how rich people stayed rich. But the journey wasn’t a get-rich-quick tactic. “If you haven’t got a lot of money to start with, if you start putting it absolutely everywhere, you haven’t really got a lot in each pot to grow,” she says.<\/p>\n The Wider Trend<\/b> <\/p>\n Gen Z and millennials are prioritising underconsumption by making more meaningful purchases, according to a recent PwC study, which found that 51% of Gen Zs surveyed cut back on dining out or takeaways.<\/a> <\/p>\n A restaurant employee looks out from the restaurant, in London. REUTERS\/Mina Kim<\/p>\n Money coach Natalie Scott says consuming less is a short-term fix for saving goals, but the longer-term solution is learning new skills. “As young people, we need to start upskilling and going for those jobs that pay more, because that’s the only way we’re going to beat inflation,\u201d Scott says. \u201cWith the short-term underconsumption, you’re building that discipline of delayed gratification, strengthening that muscle.”<\/p>\n Takeaways<\/b> <\/p>\n Make short-term sacrifices.<\/b> “It’s okay to have a season of our life where we do say, \u2018I’m just going to have a really quiet life and I’m going to save as much as I can,\u2019” Goodwill says. <\/p>\n Keep one treat. <\/b>The key to long-term success is balance, not deprivation, so don\u2019t be afraid to keep small joys like a weekly coffee. <\/b>“I think you always need something in your budget for you,\u201d Goodwill <\/b>says. \u201cIf not, life is going to be miserable.” <\/p>\n Prioritize career advancement.<\/b> The best hedge against inflation is increasing your earning power, so try to upskill and learn more about how you can progress in your career. This can be as simple as speaking to people in the roles you want.<\/p>\n Have a money lesson or story to share? Tell us what worked for you \u2014 or what didn\u2019t \u2014 by emailing hani.richter@tr.com<\/a>.<\/p>\n Sign up here.<\/a><\/p>\n Editing by Yasmeen Serhan and Lisa Shumaker<\/p>\n