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Meet the millionaires living ‘underconsumption’ life: Groceries from Aldi and Goodwill clothes

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Despite having billions to their name, some of the wealthiest people on the planet don’t splurge on the material items that others shoppers might be tempted by.

Berkshire Hathaway CEO Warren Buffett, for example, is famous for driving a 2014 Cadillac, which is covered in damage from a hail storm. Microsoft cofounder Bill Gates drives an electric Fiat500 gifted to him by Bono, while YouTube star MrBeast sleeps in his office and had to borrow money from his mom to pay for his wedding.

So how do the rich stay rich? Apparently, by acting like they’re not. High net worth individuals and $100,000+ earners Fortune spoke to said they try and keep their discretionary spending as minimal as possible, preferring the impact it has on their finances.

While their friends might enjoy eating out a couple of times a week, they choose to cook for themselves—in fact, they even buy frozen groceries because they’re cheaper than fresh.

Some choose not to own cars, mend their own “capsule” wardrobes and find some of their children’s toys on Facebook marketplace.

These individuals—in some cases unconsciously—are living an “under-consumption” or “low consumption” lifestyle.

The phrase began to spread on social media sites like TikTok after individuals started sharing their weekly grocery shop or make-up cabinet to counter the infinite shopping hauls or wishlists often found on the app.

The advice from the “underconsumption core” community included setting no-buy challenges or decluttering spaces packed with items you’re not using.

For the individuals Fortune spoke to, these habits are already second nature. And having lived the underconsumption life for most of their adult years, their bank balance is reaping the rewards.

Grocery shopping in the frozen section

Author and entrepreneur Shang Saavedra and her husband didn’t build a multi-million dollar net worth overnight. In fact, it was in their respective childhoods that they learned the value of frugal living.

Renting a four-bed home in the suburbs of Los Angeles, the pair share a 17-year-old secondhand vehicle and do their grocery shop at Aldi—predominantly in the frozen section.

Saavedra’s sons—aged six and three—often wear hand-me-down clothes, play with toys found on Facebook marketplace and enjoy free activities instead of the Disneyland trips their Californian peers often take.

While multi-millionaire Saavedra’s life has some hallmarks of a high-income household—her children attend private school, and she owns property in New York—these expenditures fit with her financial ethos: investing in education and assets that support her philanthropic endeavors.

Contrary to the majority of Americans—58% of which told a Harris Poll survey in 2023 they worry about their finances during the festive period—Saavedra says her day-to-day expenses during Thanksgiving and Christmas predominantly increase because of philanthropic gifting.

The 40-year-old’s ability to share her wealth is courtesy of shrewd money decisions in her early career—when she held a director position at CVS, and analyst and consultancy roles at the likes of Victoria’s Secret.

Before marriage, Saavedra lived with roommates and then moved into a rent-controlled apartment with her husband in New York (a building where the plumbing often cut out), often using meal vouchers handed out by working late in their corporate roles.

They aimed to reduce their expenditures to a single income and save the rest, in preparation for having children.

Saavedra, now an entrepreneur helping hundreds of clients achieve their financial goals, told Fortune in an interview that the best way for people to try an underconsumption lifestyle is to “start with why.”

“What is the end goal of underconsumption? If you just do underconsumption for underconsumption’s sake you’ll burn out and get unhappy very quickly,” Saavedra explained. “Because my husband and I oriented our consumption towards financial freedom and family it’s made it so worth it.

“Of course I still am tempted to go for luxury items and experiences, and every now and then we have a nice date night at a very nice restaurant—but understanding the reason why you want something … comes from a pain for an unfulfilled part of your life and oftentimes is a psychological need.”

Thrifting clothes

What it takes to run a household is only getting more expensive. According to the U.S. Bureau of Labor Statistics, the average monthly household expenditure in 2023 was $6,440.

This is a steep increase compared to only a year prior—up 8.3%—and up 15.5% from 2021, when monthly expenditures sat at $5,577 a month.

Yet despite the fact Annie Cole owns assets totaling more than a million dollars—and is earning six figures—she has trimmed her spending down to a little under $4,000 a month.

Cole sold her Prius a couple of years ago, batch cooks meals for her and her husband, cuts her own hair and clothes shops three times a year at her local Goodwill—Cole last purchased new clothes a year ago, and with a gift card.

The couple travel using air miles and points accrued when Cole, 36, was traveling for a corporate role, spending their vacations enjoying free activities like hiking and swimming.

The approach has not only changed Cole’s outlook on how long she will work—retirement is pencilled in for her early 40s—but the nature of work itself.

“I’m so curious if I will actually want to retire,” Cole—who works as a contracted researcher and personal finance expert—tells Fortune. “Now that I’m working part-time I think about it differently. When I was working full-time I thought ‘I can’t wait to be work-optional’ but I almost feel like I’m living it now.

“I’m doing all the things I want to do and knowing that I could retire feels like a nice financial cushion of ‘Hey, you’re taken care of as you get older and in the meantime you have the flexibility to live and work differently.’ That’s a blessing in itself.”

Packed lunches and shared commutes

Dentist Robert Chin and his partner Jessica Pharar own a practice in Las Vegas. They commute the short drive from their home together to cut down on fuel, with their packed lunches in tow.

The couple transitioned into a lower-consumption lifestyle courtesy of rising costs and a firmer idea of what they wanted their finances to look like—despite the pair earning comfortable six figures.

Chin tells Fortune he now eats out one or two times a month instead of a few times a week, and shops at Costco to avoid inflationary grocery prices as best he can.

Unlike the other sources Fortune spoke to, Chin isn’t against buying new clothes but maintains that they must have a lifetime guarantee (from the likes of Patagonia) or that they will last for years.

The pair own a condo which they let out, but rent their current property to have the flexibility to purchase when the market begins to move again.

Their goal is simple: Flexibility—whether that means taking more time off together or potentially retiring earlier.

“In five years we’d like to have an associate or another practitioner both because the office has grown enough to support that and also because it affords us the flexibility to take time off more readily. It’s proabably the biggest challenge of us being leaders in the business, our ability to take time off is really difficult because if we’re not here the practice doesn’t make money.”

More on personal finance:

An initial version of this article was published on December 28, 2024.

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Amazon’s Alexa chief predicts an end to doom scrolling: the next generation is ‘going to just think differently’

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Panos Panay, Amazon’s head of devices and services, believes the reign of the smartphone screen may be nearing a tipping point. Speaking at Fortune Brainstorm AI in San Francisco, he suggested that a growing fatigue with social media “doom scrolling” is paving the way for a new era of “ambient intelligence”—one driven by a generation that interacts with technology in fundamentally different ways,.

According to Panay, the future of consumer technology isn’t about better apps, but about making the technology disappear into the background.

“There’s a whole younger generation coming up that I think at some point they get tired of doom scrolling,” he observed, noting that many young people feel “stuck” when it comes to social media. He argued that this demographic, having been raised in an emerging “AI world,” will demand interactions that bypass the friction of traditional computing.

“They’re going to just think differently,” Panay predicted. “You’ve got to make sure you have products in their pockets, on their bodies, in their homes that they don’t expect… [but] expect to connect seamlessly.”

The death of the ‘app’ experience

Panay described a user experience that eliminates the need to look at a screen to solve daily problems. “It’s such a joy because there’s no opening a phone, opening the app, clicking, finding … none of it,” he said. “You just ask the question and you get it back”.

He illustrated this shift with a personal anecdote about a family debate over which restaurant to visit. Rather than everyone retreating to their corners to stare at their phones—a moment that usually disrupts family connection—they simply asked Alexa. The AI recalled a conversation from months prior regarding a restaurant they had wanted to try, settling the debate instantly. “It’s such a simple, delightful moment of when ambient intelligence is around you,” Panay noted.

To support this screen-free future, Amazon is aggressively experimenting with new hardware. While Panay declined to get into specific product roadmaps, he hinted that the current smart speakers and phones are not the endgame.

“I don’t think we’ve seen the next form factor yet on where AI devices are going to go,” he said, adding that Amazon has a “lab full of ideas,” though most ideas won’t make it from prototype to reality.

When pressed on whether Amazon would release wearables or glasses to compete with recent partnerships like that of OpenAI and Jony Ive’s io, Panay pointed to Amazon’s portfolio, including the recent acquisition of a company that makes a wristband. “We have wearables, we have earbuds, we’ve had glasses in the past.” He added that he won’t reveal what’s coming next, but insisted, “I think you’re going to want your assistant with you everywhere you go.”

Security concerns come hand in hand with these sort of advances, too. When asked by an audience member about the risks of placing listening devices in homes, Panay described security as a non-negotiable agreement. “I feel like it’s a contract with our customers, period. We break that contract, we lose our customers.” He emphasized that Amazon does not “cut one corner” regarding security protocols, describing it as the “first premise” of their product design.

The New ‘Alexa Plus

The bridge to this ambient future is the newly updated “Alexa Plus,” which Panay describes as a shift from a command-based tool to a comprehensive “home manager” and “butler.” Unlike “legacy Alexa,” which often required users to navigate complex setups, the new AI possesses “unlimited depth of understanding” and contextual memory.

“If I’ve asked it two or three questions in the last couple of weeks … the understanding, the personality will just change and say it understands what I’m looking for,” he explained.

For Panay, the ultimate goal is to return time to the user, moving them away from the distraction of screens and toward meaningful activity. “I think learning is one of the finest arts on the planet … and I think reading does that,” he said, positioning the shift away from doom scrolling as not just a technological evolution, but a cultural one.

This story was originally featured on Fortune.com



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Christmas 500 years ago was a drunken 6-week feast that may have been considerably better than the modern holiday, medieval historian says

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Beer and wine were major components of the meal. By our standards, peasants drank a lot, although the alcohol content of the beer and wine was lower than today’s versions. They often napped before returning to work. In the evening, they ate a light meal, perhaps only bread, and socialized for a while.

They went to bed within a few hours of darkness, so how long they slept depended on the season. On average, they slept about eight hours, but not consecutively. They awoke after a “first sleep” and prayed, had sex or chatted with neighbors for somewhere between half an hour and two hours, then returned to sleep for another four hours or so.

Peasants did not have privacy as we think of it; everyone often slept in one big room. Parents made love with one another as their children slept nearby. Married couples shared a bed, and one of their younger children might sleep with them, though infants had cradles. Older children likely slept two to a bed.

A musician entertains a group of peasant farmers. duncan1890/DigitalVision Vectors via Getty Images

Dreaming of a medieval Christmas

Life certainly wasn’t easy. But the stretches of time for rest and leisure were enviable.

Today, many people start thinking about Christmas after Thanksgiving, and any sort of holiday spirit fizzles by early January.

In the Middle Ages, this would have been unheard of.

Advent – the period of anticipation and fasting that precedes Christmas – began with the Feast of St. Martin.

Back then, it took place 40 days before Christmas; today, it’s the fourth Sunday before it. During this period, Western Christians observed a fast; while less strict than the one for Lent, it restricted meat and dairy products to certain days of the week. These protocols not only symbolized absence and longing, but they also helped stretch out the food supply after the end of the harvest and before meats were fully cured.

Christmas itself was known for feasting and drunkenness – and it lasted nearly six weeks.

Dec. 25 was followed by the 12 Days of Christmas, ending with the Epiphany on Jan. 6, which commemorates the visit of the Magi to Jesus, Mary and Joseph. Gifts, often in the form of food or money, were exchanged, though this was more commonly done on New Year’s Day. Game birds, ham, mince pies and spiced wines were popular fare, with spices thought to help warm the body.

Though Christmas officially celebrates the birth of Jesus, it was clearly associated with pre-Christian celebrations that emphasized the winter solstice and the return of light and life. This meant that bonfires, yule logs and evergreen decorations were part of the festivities. According to tradition, St. Francis of Assisi created the first nativity scene in 1223.

Christmas ended slowly, with the first Monday after Epiphany being called “Plough Monday” because it marked the return to agricultural work. The full end of the season came on Feb. 2 – called Candlemas – which coincides with the older pagan holiday of Imbolc. On this day, candles were blessed for use in the coming year, and any decorations left up were thought to be at risk of becoming infested with goblins.

Many people today gripe about the stresses of the holidays: buying presents, traveling, cooking, cleaning and bouncing from one obligation to the next. There’s a short window to get it all done: Christmas Day is the only day many workplaces are required to give off.

Meanwhile, I’ll be dreaming of a medieval Christmas.

Bobbi Sutherland, Associate Professor, Department of HIstory, University of Dayton

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The Conversation



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Gen Z founder on ‘AI anxiety’ and being pigeonholed as generation shortcut: that’s the ‘biggest misconception’

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For Kiara Nirghin, the 24-year-old co-founder and chief technology officer of the applied AI lab Chima, the narrative that her generation uses artificial intelligence as a cheat code is not just wrong—it ignores a fundamental shift in human cognition.

The Stanford computer science alum and Peter Thiel fellow argued that while older generations view AI as a tool to be adopted, Gen Z views it as a native language. However, this fluency comes with a unique burden: the “AI anxiety” of keeping pace with technology that is currently the “worst” it will ever be.

Speaking at Fortune Brainstorm AI in San Francisco, Nirghin addressed the tension between the perception of Gen Z and their reality as builders. “The truth is the younger generation isn’t adopting AI,” she said. “We’re growing up fluent in AI.” This distinction is critical in the workplace. While a manager might see an employee using an AI agent as cutting corners, Nirghin said she sees a shift in the architecture of work itself.

“We aren’t thinking about coding from scratch,” she explained. “We’re thinking about coding with a coding agent side by side.” Far from being generation shortcut, Gen Z are trailblazers, she argued.

“That fundamentally changes how you write, how you take tests, how you apply to jobs or different applications, because it’s not from the ground up,” Nirghin said about working side by side with an agent. “I think what that really means is that this broad level of use cases and applications we’re seeing is really being pioneered by the younger generation.”

The ‘lazy’ myth vs. deep thinking

One of the most pervasive criticisms of the digital native generation is that reliance on large language models (LLMs) erodes critical thinking skills. Nirghin firmly rejects this. “I think that the biggest misconception is that young people are using AI to not think things through,” she said, that they’re using it “as a shortcut.”

Instead, Nirghin said that intelligent users are leveraging these tools to offload cognitive labor so they can probe complex subjects with greater intensity. She said it’s not as simple as handing off the “cognitive load” to an AI model, it’s about thinking “differently … even “deeper” on a specific subject, because the agent is taking hours of menial work off your hands.

As an example, she pointed to running deep research reports on financial markets that might take hours to generate manually. By automating that work, she said the user is free to analyze the implications rather than just gathering the data. “What does that unlock for you?” she asked the audience, urging them to consider just how much more they can do with these tools at their “fingertips.”

The anxiety of infinite improvement

Nirghin said her generation does face a daunting reality that people don’t appreciate: the relentless speed of obsolescence, and their own awareness of that fact. She said fears over AI have some similarities to “climate anxiety.” Noting that some of her earliest research was about climate change, she explained climate anxiety as the idea that “there’s this movement of climate change coming up and we don’t really know what to do but we know it’s coming and nobody is moving as fast to solve the problem.”

It’s tied to the realization that current technology, as impressive as it seems, is primitive compared to what is coming next. “The models right now are as dumb as they are ever going to be,” Nirghin warned. “It is only going to get faster, more advanced and more intelligent, each and every model from from here on out.”

For Gen Z workers, she said, this creates a pressure environment where staying ahead is a daily requirement. Nirghin noted that recent model releases have “engulfed the benchmarks in such an enormous way” that previous capabilities can now be “10xed” overnight—imagine coming to work tomorrow, able to produce 10 times as much since yesterday. If a worker isn’t consistently on top of these updates, “you’re kind of left behind.” The fear isn’t about taking too many shortcuts, but not figuring out every pathway and every update to hit that 10x.

Taste as the new IQ

If intelligence is being commoditized by models that improve exponentially, what becomes the new metric for human value? According to Nirghin, it is “taste.”

Nirghin, whose background includes work at Stanford’s Human-Centered AI labs, argued that benchmarks around accuracy no longer capture what makes a product successful. She cited the example of coding agents that, without human guidance, might uncontrollably add “sparkle emojis” to a front-end UI because they “love” certain design tropes.

“You know something is vibe coded if you’ve ever sort of worked with a coding agent,” she joked. The differentiator for the future workforce will not be the ability to generate code or text, but the human-centered judgment to determine what users actually want to see. “As models and use cases and efficiencies change,” Nirghin said, “the key differentiator is taste.”

Nirghin’s advice extends beyond her peers to the older generations currently managing them. She stressed that “AI fluency is just as important for people that are already in the workforce,” urging them to arm themselves with tools like ChatGPT or Gemini as daily “co-pilots.”

Ultimately, Nirghin said she views the rapid evolution of AI not as a threat to employment, but as a challenge to adaptation. Whether automating back-office processes or launching “deep research agents,” the economic “unlock” provided by these models is already incredible, even if they never improved again. But the anxiety of keeping up is the new price of admission for the future of work.

This story was originally featured on Fortune.com



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