Tay Ladd may not have a retirement plan, but his mini goldendoodle, Gus, gets pampered with professional groomers and market bowls and thousands of dollars worth of silk scarves and sweaters.
“I don’t see myself retiring at all,” he admits.
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However, that doesn’t mean you’re not intentional with your money.
Ladd, a young millennial corporate lawyer, calls herself @thecorporatedogmom on TikTok, where she has amassed more than 60,000 followers. She posts videos about managing work-life balance and how she’s living the best “soft life” of her own in notoriously expensive New York City.
Ladd is applying this mindset to his money, too, and is “saving softly,” a trend that has gained popularity among young Americans, rather than subscribing to hustle culture.
A recent report from fintech company Intuit found that Gen Z is taking a more moderate approach to their finances, with a very different definition of what it means to thrive.
“I’m working just as hard, but… I’m being more conscious of making time for the things that are important to me,” Ladd says.
What is a soft life?
From boujie bubble baths to cozy candlelit dinners, the soft-living trend has taken over social media, with more than 10.5 billion views on TikTok. Younger millennials like Ladd and Gen Z have moved on from the FIRE craze and the era of older millennial female bosses. They are choosing not to save their money so aggressively and to focus on the present.
“It’s more about comfort, less stress, less pressure to save for the future and really balance it out,” explains Brittney Castro, certified financial planner and consumer finance advocate at Intuit. “Gen Z is interested in living for now and having a better quality of life.”
According to Intuit, nearly three in four young people say the current economic climate makes them hesitant to set long-term goals, while two in three aren’t sure they have enough money to retire in the first place.
It’s no secret that the rising cost of living is keeping younger generations on the edge, yet Castro says the COVID-19 pandemic caused a shift in priorities. Instead of frantically saving for an bleak future, Gen Zers are investing their money in their personal growth and mental well-being.
Young Americans choosing to live their softest best life
Until last October, Ladd willingly participated in the hustle culture, but the stressful lifestyle of working in private equity was catching up with her. She was losing her voice, there was even a day when she couldn’t walk because she was completely exhausted.
That’s when he realized he needed to make a change.
“I was like, ‘None of this matters if you’re not here,’” she says. “I haven’t looked back since then.”
While she hasn’t quit her high-pressure job, she has reassessed how she schedules her days and set firm boundaries to make time for herself and the things she enjoys. Now, she makes her mornings all about herself: a skincare routine, breakfast, Pilates class. She doesn’t schedule calls during her spare time and splurges on things that make her feel good, like exercising or subscribing to vegan meals.
And then when you’re at work, you can give it your full attention.
She’s brought her TikTok followers with her on her smooth life journey, sharing things like her home office setup, hanging out with her dog, and aesthetic montages of her everyday life.
“I want to romanticize these things that are important to me because for so many years I did not take care of myself. I was neglecting my mental health and well-being.”
Read more: Here’s how much money the average middle-class American household makes: how does it add up?
How do you save gently with intention?
While it may seem like financial planners would care about Ladd’s approach, Castro says soft saving isn’t a bad financial move at all, as long as it’s executed responsibly.
“It doesn’t really help anyone’s health or mental well-being if there’s so much stress or pressure to save aggressively, and you constantly feel behind on your financial goals.”
That said, Ladd’s lavish lifestyle might not be for everyone, especially if you’re having a hard time meeting your basic needs. Castro warns against going to the extreme and depleting his savings completely, and not comparing yourself to others, especially on social media.
“It’s really about figuring out what prosperity means to you,” he explains. “It’s more about managing money in a simple way to get to what’s most important to you. And I think that’s really key because everyone’s life goals are going to look different.”
To find that middle ground, Castro recommends reviewing your budget and evaluating your income and expenses to narrow down your top financial goals for the year. This can be as simple as taking notes with a pen and paper, or using a budgeting app.
“Do your best to say, ‘Okay, even though I may not be saving the full amount to build my cash cushion or a down payment on the house or for retirement, I’m still going to put something in there. And then next year, work to increase it.”
Ladd puts 100% of his brand’s dealership income, which he estimates between $4,000 and $5,000 a month, into his savings and is working on building an emergency fund to cover three to six months of expenses.
You plan to start investing to build wealth, but haven’t yet considered saving for your golden years. “I’m not working to retire,” she says.
Ladd adds that you need to choose what you want to spend your money on to leave room for your financial goals. He doesn’t mind splurging on his apartment with his expensive rent, but he’ll opt out of taking a fancy vacation.
And she refuses to cut back on the luxuries for Gus the mini goldendoodle, of course.
“He lives a soft life,” he admits.
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This article is for information only and should not be construed as advice. It is provided without warranty of any kind.