Contrary to popular perception, a growing number of millionaires are rejecting extravagant lifestyles and embracing the values of 'cheap or frugal' living.
The term "under-consumption" has gained popularity as a response to social media influencers showcasing endless shopping hauls and extravagant skincare routines. Advocates of the under-consumption movement criticize such excesses and promote minimalism by encouraging decluttering and no-buy challenges.
Entrepreneur Shang Saavedra, a Harvard graduate and personal finance blogger, exemplifies this lifestyle despite her multi-million-dollar net worth. According to Fortune, Saavedra and her husband rent a four-bedroom home in Los Angeles, share a 16-year-old secondhand car, and often buy frozen food during grocery trips.
Her children wear hand-me-down clothes and play with toys purchased from Facebook Marketplace. The couple prioritizes spending only on key areas like their children's education, real estate investments, and philanthropy. Their children attend private school, Saavedra owns property in New York, and they actively support charitable causes.
"Of course, I'm still tempted by luxury items and experiences, and occasionally we'll enjoy a fancy date night. But understanding why you want something often reveals a psychological need tied to an unfulfilled part of your life," Saavedra told Fortune.
Similarly, Annie Cole, a contracted researcher and personal finance coach who helps women manage money, has built over $1 million in assets while maintaining a frugal lifestyle. She spends just $4,000 a month, having sold her car years ago, cooks weekly meals to save money, and even cuts her hair.
Cole shops for clothes only three times a year opts for secondhand items, and enjoys vacations centred around free activities like hiking and swimming. When travelling, she and her husband rely on free air miles for flights.
