Less hustle, more flow: Do you have these ‘soft saving’ tools in your kit?

Millennials who enjoy scrolling TikTok for personal finance ideas may have noticed a new theme taking hold: #SoftSaving. This new view on budgeting and saving promotes a greater balance between personal and mental well-being vs. a total focus on career and wealth accumulation. Soft Saving tips found on social media cover everything from creative ways to hack your grocery budget to a 100-day envelope challenge to save $5,000.

In direct reaction to #HustleCulture, the rise-and-grind ethos of working and saving aggressively, Soft Saving offers a gentler perspective: It involves mindfulness for your personal ambitions, both your objectives at hand now and those you wish to work towards.

In other words, Soft Saving is about enjoying life today. But does it mean you have to sacrifice saving toward your goals?

Here are some ways Soft Saving could become part of a successful financial strategy.

What is Soft Saving?

The hashtag #SoftLife has gained attention on social media platforms over the past couple of years, starting with TikTok. Videos tagged with #SoftSaving or #SoftLife promote a life of comfort over one of stress. That can mean setting boundaries on work, relationships or housework, or simply buying the $7 latte you enjoy without worry.

The concept got a boost in January 2023, when the financial technology platform Intuit released the results of its Prosperity Index Study.^[1] It showed that three out of four respondents in its youngest cohort — those born after 1997 — said they would prefer a better quality of life than extra money in the bank. Moreover, about two-thirds of those surveyed said they’re only interested in finances to support their current interests. The concept of retirement? It can feel very distant.

Putting #SoftSaving into practice

Is it possible for us to live the Soft Life and still save money for our investments? Here are a few ideas to help you save and invest while balancing day-to-day happiness.

Set some goals

Saving money can feel overwhelming, especially if you’re not sure what you’re saving for. Having a goal, whether it’s something big (like buying a home) or something smaller (a major purchase) can motivate you to get started and track your progress. For some, having a TD Goal Builder conversation with a TD Personal Banker can be helpful to identify financial goals and map out a path to reach them.

Build a budget

That might not be as hard as it sounds. Taking careful stock of what money you have coming in and where it’s going is an important step to reaching your goals. By building a budget, you’ll see that some of your spending is obligatory (or non-discretionary), like food, rent and loan payments. You will also notice discretionary items — stuff you don’t absolutely need, like new clothes and entertainment — where you can adjust spending. For example, you might ride your bike to work if it means having more money for something else. Online apps like TD’s Personal Cash Flow Calculator could help.

Make regular contributions

Once you’ve identified some extra cash in your budget (you hope!), you might consider moving it to a separate account. One tactic some people use is to automate their savings: This involves moving money to a separate investment or savings account on a regular basis, ideally before you feel tempted to spend it on something else. Even small amounts may grow over time.

Give your money a chance to grow

Once you have extra money accumulating, there are ways for it to increase. Investment vehicles like GICs (Guaranteed Investment Certificates) or Mutual Funds, can allow you to earn interest, dividends or income on your investments. Registered investment accounts, such as a Tax-Free Savings Account (TFSA), a First Home Savings Account (FHSA) or a Registered Retirement Savings Plan (RRSP), also have their own unique benefits.

Manage debts and investments

Paying interest on debt can slow your savings progress. Some debts can be a bigger drag than others. Student loans and car loans might have a lower interest rate than, for example, your credit card. One way to avoid incurring higher-interest debt is to pay off credit cards in full each month. If you find debt payments are pulling you down, a TD Personal Banker may offer options to manage your debts and investments.

Speak to a professional

Prioritizing your money to afford the things you want takes planning. About two-thirds of respondents to the Intuit survey said they know it’s important to invest, but don’t know how.^[2] Speaking with a TD Personal Banker at a local branch can help as they’ll provide one-on-one financial advice tailored to your needs.

Make #SoftSaving a habit

Enjoying life in the moment and being able to afford better things in the future doesn’t have to be hard. What some consider to be “Soft Saving” may simply be what previous generations knew as spending smart and living within their means. Perhaps the key lesson is to be as committed to your saving and spending decisions as you are with everything else in your life. By spending intentionally, saving regularly and investing early, you may be able to finance the life you want now and in the future — and what could be a better financial hack than that?