Key takeaways
- “Deinfluencing” is a social media trend that urges people to stop buying products just because influencers have them.
- To cut back on overspending, learn what your financial values are, and consider how you want to spend your money.
- Avoid following people on social media whose content encourages overspending.
In a TikTok video, Natalie Fischer, a 26-year-old content creator in Washington, filters through her closet, taking out enormous handfuls of sweaters, shirts and dresses — all that look barely used. Fischer admits in a voiceover that she’s had a habit of spending too much money online on clothes that would just end up in the back of her closet. At the end of the video, she guiltily holds up two garbage bags of clothing that will be donated.
“In 2024, I want to be more mindful of the clothes I bring in my closet,” Fischer says in the video. “Because it shouldn’t have been this easy to get rid of two bags of clothes.”
Fischer’s video is the opposite of a lot of clothing-related content on TikTok — namely, she’s getting rid of clothes instead of showing off what she recently bought. Overconsumption isn’t new, but cutting down on overspending is a new TikTok trend entirely: “deinfluencing.”
For over a year now, countless people have detailed how they’ve stopped making unnecessary purchases just because they were touted by an influencer online. Amid an online culture that can tempt you to overspend on clothing and other goods, deinfluencing can be a powerful way to stop overconsuming and spend more mindfully.
“The average American was told to look a certain way, to upgrade their life, and that is going to make them happy. But we know that’s not true,” Fischer tells Bankrate. “That’s only profiting the businesses and promoting reckless spending.”
But deinfluencing doesn’t have to stop at your wardrobe. By adjusting your financial mindset, you can change your money habits, too, and find yourself one step closer to achieving your goals. These three steps can help you get started.
1. Reconsider your overall approach to spending
Have you looked at your checking account recently? If you’re spending more money than you’d like on things you don’t need, sacrificing your savings or going into debt, it may be time to consider cutting back on spending.
Rebecca Sowden, a 27-year-old living in California, considers herself a recovering “super spender.” Sowden grew up in a family that tended to overspend, and she carried the habit into adulthood. It wasn’t until she read Cait Flanders’ “The Year of Less” that she became inspired to implement a shopping ban and tackle her overspending habit.
“I wanted to prove to myself that I actually didn’t need to shop all the time to live my life in a meaningful way,” she says.
@rebecca.sowden Its not all about how you organize your money, the personal work we do to make it emotionally easier to not spend is the hard part of quitting overspending #budget #budgeting #cuttingcosts #savingmoney #howtosave #hysa #howtobudget #beginnerfinance #adhd ♬ original sound – 💸Rebecca Sowden💸
While Sowden’s spending never drove her into debt, by her mid-20s, she realized she had prioritized spending over saving. At her peak, she only had $2,000 in savings. Financial regrets like this are common: 77 percent of Americans have a financial regret, according to Bankrate’s Financial Regrets Survey, including 18 percent who regret not saving enough for emergency expenses.
Sowden tried a lot of different budgeting tools, like apps and the 50/30/20 method, none of which actually enabled her to spend less. It wasn’t until spent some time on self-reflection that she realized she preferred a minimalist lifestyle. Understanding her values, she says, helped her realize what was actually worth spending money on — and how that didn’t include unnecessary products being pushed on her social feeds.
“I pretty much raised the bar for things that impressed me, because on TikTok Shop, you’re constantly being pushed stuff that is truly just garbage,” she says. “(Now) I have a better grasp on what I actually want in my own space.”
If you’re interested in deinfluencing your budget and meeting your goals, think of what you value most, and consider being choosier about where your money is going. In Sowden’s case, she continued to buy higher-end goods for hobbies she was passionate about, like a backpack for traveling, while spending less on categories like fitness, which didn’t bring her as much joy.
2. Prune your social media feeds
TikTok, Instagram and other social media platforms’ algorithms make it easy to be inundated with advertising from influencers. Influencers want to sell a lifestyle, and if you want that lifestyle, you’ll also want the products they’re showing.
When Kallie Legault, a 37-year-old tech recruiter in Seattle, was on maternity leave last year, she was painfully bored without her usual routine. While stuck at home, she began spending too much time on TikTok, which spurred her to overspend on clothing and baby gear. Thanks to social media, she felt pressure to have the newest, best baby items, even if they weren’t necessary.
“As a first-time parent, you are so anxious. We played into all of it. We bought the most expensive monitor that you can buy for this kid, and did we use it?” she says. (She didn’t.)
@hellokalliemarie I’ve come a long way 🥲inspired by @Natalie Rose #overconsumptionrecovery #consumerism #livewithinyourmeans #budget #frugalliving #budgeting #spending #shopping #overconsumption #momonabudget #mom #buynothingproject #momsoftiktok #momlife #millennial #millennialmom ♬ original sound – speedz!
After her company went through layoffs, Legault became nervous about her finances, so she decided to cut her spending habit short. Now, she can’t help but wonder if families on TikTok are going into debt for their lavish houses and piles of new clothing.
“I think living within your means and getting comfortable in that space is really important,” she says. “I’ve learned as I get older that comparison is the thief of joy.”
If you find yourself susceptible to buying things because you saw them on social media, prune your feed of accounts that make you feel like overspending. Block or unfollow influencers who tout tons of products or who show off their over-the-top vacations and shopping sprees. Eliminating that temptation is an easy step to avoid overspending.
Remember: You only see what people want you to see on social media. When an influencer shows off new clothes every day, did they pay for it — or did the brand send them the clothes to promote? Are they getting anything out of you buying the product? And when everyone on your feed seems to be on a picture-perfect vacation, how do you know they’re not carrying thousands of dollars in debt?
— Ana Staples, Bankrate Lead Credit Card Reporter
3. Revamp your budget
Once you’ve reconsidered why you’re spending money and cleaned up your social media feeds, it may be a good idea to examine your budget. With a new, stricter budget, it’ll be easier to avoid falling back into the overspending trap.
Find out your typical discretionary spending amount
First, gather up your receipts and bank statements and tally up how much money you spent on discretionary spending in the last month. That includes clothing, travel, food, nights out and other optional or fun spending. If that number is higher than you’d like, it’s time to set a new budget.
Budget for discretionary purchases
Common personal finance advice recommends the 50/30/20 rule — that is, 50 percent of your take-home income should go to expenses, 30 percent should go to discretionary spending and 20 percent should go to savings. But in today’s economy, that’s not always realistic. Based on how much you spent last month, give yourself a firm budget for discretionary spending.
Don’t try to funnel all your funds into savings. It may seem like a good idea at the time, but it’s just not realistic for most people.
“Try to leave some room in your budget for fun things — if you can,” Staples says. “Create spending categories for shopping, eating out or whatever else brings you joy. This way, it doesn’t feel completely restrictive, but you also have limits for yourself.”
When in doubt, pay yourself first
Not sure how much you should set aside for discretionary spending? To balance fun spending while also meeting your savings goals, consider paying yourself first. That means setting aside savings before you spend money on other purchases.
Look at your monthly net income and tally up how much money you have left over after paying your bills. Put a portion aside for savings and the rest is your monthly discretionary fund. For example, if you have $500 left every month after bills, food, debt repayment and other necessary expenses, you can put $100 aside for savings, leaving you with a $400 discretionary fund.
Bottom line
If you spend a lot of time online, you know cutting down on overspending can be difficult — influencers are so, well, influential. It’s also not a habit that’s easy to quit overnight. But stick to your budget, and keep at it. Once you have a better understanding of where your money is going, use this opportunity to re-examine your long-term goals. If you have credit card debt, student loan debt or other high-interest debt, you should focus on paying that down as fast as possible.
If you can stop spending on categories that are unimportant to you, you’re one step closer to understanding your relationship with money. Not to mention, you’re one step closer to maintaining focus on the social media trends that are really important, like baby hippo videos.
Read the full article here
