Free activities, second-hand shopping, batch meals: THESE millionaires embrace underconsumption trend

In the age of fast fashion and trends, the concept of underconsumption is gaining popularity among some millionaires and high-income earners. Underconsumption has become popular on social media platforms such as TikTok, where individuals adopt practices including batch cooking, shopping second-hand, and avoiding unnecessary purchases.

According to individuals interviewed by Fortune, adopting ways of underconsumption has improved their bank balance and given them an option of early retirement.

Shang Saavedra

Shang Saavedra is a 39-year-old author and entrepreneur who attributes her multi-million-dollar net worth to her childhood lessons on saving money. She and her husband live in a rented four-bedroom home in suburban Los Angeles.

The couple owns a 16-year-old second-hand car. They mostly shop at budget supermarkets like Aldi and prefer buying frozen groceries to reduce expenses. Saavedra has two sons, aged five and two, who wear hand-me-down clothes and play with toys from Facebook Marketplace. Instead of going on expensive trips to Disneyland, they prefer free activities.

However, Saavedra spends a significant amount of money sending her children to private schools and owns a property in New York. Such expenses align with her financial philosophy, which prioritises investments in education and assets.

Before becoming an entrepreneur, she held corporate roles at CVS and Victoria’s Secret. Saavedra mentioned that she and her husband greatly reduced expenses early in their career.

“Underconsumption has to have a purpose,” Saavedra explained. “If you just do it for the sake of saving, you’ll burn out. For us, the goal was financial freedom and family, which made it worthwhile. Of course, I’m tempted by luxury items, and occasionally, we indulge in a nice date night, but understanding the ‘why’ behind your choices keeps you grounded,” Saavedra told Fortune.

She continues with her underconsumption habits in the festive season, and her expenses only increase due to philanthropic gifting.

Annie Cole

Similarly, Annie Cole, a 36-year-old personal finance expert and researcher, has adopted a minimalist lifestyle despite having a net worth of over a million dollars and earning a six-figure income. She nearly cut her monthly household expenditure to under $4,000, much lower than the US average of $6.440 in 2023.

Some practices she adopted to ensure such a lifestyle are batch cooking meals, selling her car, and shopping for clothes only three times a year at Goodwill. He last purchased a gift card-funded item more than a year ago. She funds her holidays through air miles that she received during her corporate role. She enjoys free activities such as hiking and swimming during her leisure time.

Cole has planned her retirement in her early 40s. However, her current part-time work seems like semi-retirement to her.

“Knowing that I could retire is a financial cushion in itself,” she said. “I’m living the flexibility now, working less and doing the things I love—it’s a blessing,” Cole told Fortune.

Robert Chin

Robert Chin, a dentist in Las Vegas, adopted an underconsumption lifestyle due to rising expenses and his willingness to link spending with long-term financial goals. Chin and his partner, Jessica Pharar, have limited dining out to once or twice a month and purchase groceries from Costco in bulk to address inflation.

They look for durability in the products they purchase, including clothing brands with lifetime guarantees, and rent their homes to cover future property expenses.

“In five years, we hope to bring in another practitioner to allow us more time off…As business leaders, taking breaks is challenging because if we’re not working, the practice doesn’t generate income,” Chin told Fortune.