Money 101: Trendy Financial Terms

Financial trends evolve over time. The way people manage their income continually adapts to changing macroeconomic conditions. New financial terms have emerged, particularly among younger generations. What are some of them?

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Loud Budgeting

💡 An open and vocal approach to managing finances—sharing your budget plans with others so you feel more confident when you need to decline certain expenses or discuss your financial capacity.

This trend has arisen to combat impulsive shopping habits that often derail pre‑set budgets.

Doom Spending

💡 A consumptive behavior triggered by stress or anxiety about an uncertain future; splurging on non‑essential items as a form of “escape” from life’s pressures.

In other words, doom spending is a coping mechanism best avoided. Seek support from close friends or family so the issue doesn’t persist.

Spaving

💡 A portmanteau of “spending” and “saving”; the phenomenon where someone spends extra money to appear frugal, but may actually end up being wasteful.

For example, deliberately adding a IDR 15,000 item to an e‑commerce cart just to qualify for an IDR 8,000 shipping credit. Or buying two units in a “buy two, get one free” deal even though only one is needed.

Soft Savings

💡 A more flexible saving approach that prioritizes present‑day well‑being, rather than saving aggressively to the point of not enjoying life (the counterpart being “hard savings”).

However, this approach brings new challenges, such as potential overspending, difficulty reaching long‑term financial goals, and less‑mature future planning.

48-Hour Rule

💡 A rule of waiting 48 hours (two days) before purchasing secondary or tertiary items, allowing time to reconsider whether the purchase is truly necessary.

This practice is very useful for preventing impulse buys and other forms of wasteful spending—regardless of the eventual decision to buy or not.

F.I.R.E

💡 An acronym for “Financial Independence, Retire Early”; a movement aimed at achieving financial freedom so you have enough funds (through savings or passive income) to sustain life after early retirement.

The F.I.R.E. movement typically involves extreme saving well above recommended levels—between 50 % and 75 % of total income—accompanied by other efforts such as investing.

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Disclaimer: The content is made for educational purposes, not a recommendation to buy or sell a particular stock. PT KAF Sekuritas Indonesia is licensed and supervised by the Financial Services Authority (OJK).