Soft Saving: What It Is and How It Helps Z Generations Save

This approach is described by experts as a flexible and well-thought-out way of managing finances. One financial consultant, Lauren Bringle, explains that it helps make the money management process sustainable and effective. The essence is not to give up all radical changes at once but to gradually cut down on things that are not critically important. For example, one could avoid ordering delivery lunch while still enjoying a favorite morning coffee, without feeling restricted.

In today's conditions of economic instability and rising costs, traditional methods of saving seem increasingly less realistic for the younger generation. The information portal 'Glavcom' noted that a new perspective on savings is becoming popular, introducing the concept of 'soft savings' or 'soft saving' (Soft Saving) under the rubric The Everygirl.

Popularity Among Youth

According to Bringle, Generation Z has particularly embraced this approach. The conditions of rising prices and an unstable job market have inspired Zoomers to adopt soft saving as a means of effective financial management, allowing them to remain confident and not feel limited. More than half of the younger generation is still looking for jobs, and for many, soft saving has become a life hack in planning their future while considering urgent needs.

Instead of stressing over strict schedules (such as saving $200 each week), the Soft Saving approach recommends balance and the implementation of small, low-stress changes. The key is not in deprivation but in the proper prioritization of expenses.

Examples of Soft Saving:

• Keep your morning coffee but give up lunch delivery.
• Maintain your Netflix subscription but pause other less important services.
• Order one cocktail instead of two at a venue.

The main goal is to find such ongoing expenses, the reduction of which doesn't cause significant discomfort, and redirect those funds toward more important financial goals.

Disadvantages of the Approach

However, there can be certain pitfalls in the Soft Saving method. If you only save during 'convenient' moments, you might fail to prepare for unexpected expenses such as job loss or car repairs. Therefore, experts recommend linking each economic decision with a specific goal.

'Ask yourself, why are you sacrificing a certain expense? Is there a specific goal in mind, such as saving for a move or paying off a loan? Understanding your motivation helps you stick to your plan,' Bringle noted.

To kickstart soft saving, it's important to establish your priorities, formulate 'soft' goals, and set calendrical checkpoints to track progress. It's crucial to celebrate even the smallest successes on the path to financial stability.

Social Aspects

Generation Z values personal communication for building relationships and career development. However, research has shown a concerning trend: 69% of surveyed Zoomers feel less connected and more alienated from colleagues due to reliance on technology.

The 'soft saving' approach helps young individuals manage their finances rationally, without stress and restrictions. Considering the current economic situation and unpredictable expenses, this method allows for financial stability while ensuring comfort and satisfaction in life.