Soft saving: The savings strategy adopted by a whole generation
What is soft saving?
Soft saving is all about balance. Instead of aggressively cutting out everything fun to hit your savings goal, it's about saving what you can while still enjoying the things that matter now - brunch with friends, weekend getaways, that concert you've been dying to see.
Gen Z have embraced soft saving as they aren't buying into the 'sacrifice now, live later' mentality of traditional saving instead they’re choosing to save what they can and enjoy life living in the now and soft saving removes any guilt around this generations chosen savings strategy. Think of it as the middle ground between living paycheque to paycheque and depriving yourself of all life's pleasures. You're still building financial security, just with a gentler approach that prioritises your quality of life today.
Who should consider it?
Soft saving might suit you if you find traditional savings plans overwhelming, value experiences as much as your bank balance, or are just starting your savings journey and need a gentler entry point.
What makes it different?
Here's how soft saving stacks up against traditional approaches:
| Soft Saving | Traditional Saving |
|---|---|
| Save what feels comfortable each month | Strict budget with fixed savings percentage (like 20% of income) |
| Flexible amounts based on life circumstances | Consistent amount set to a schedule (usually every pay day) |
| Prioritise experiences and mental wellbeing alongside saving | Cut discretionary spending until goals are met |
| Modest emergency fund (3-6 months) | Larger emergency fund (6-12 months) |
| Enjoy life now while building some security for the future. | Sacrifice now for financial freedom later |
The trade-off? You won't build wealth as quickly. The upside? You're more likely to stick with it and enjoy life right now, not just in retirement.
Why automation is your secret weapon
Because soft saving is so flexible, it's easy to accidentally slip into no saving at all. That's where automation saves the day.
Set up recurring transfers into your savings account on payday. The amount doesn't have to be huge - even $50 or $100 per pay adds up. You make the decision to save once, not every time you get paid.
The bottom line
Soft saving isn't about being relaxed with money - it's about being realistic and choosing to prioritise the now not the future.
If you are going to embrace soft saving remember: Automate what you can, choose accounts that maximise your savings (like the MyState Bank Hello Saver) and find a balance that lets you save for tomorrow while still enjoying today.
