An Interesting Taxonomy of Personal Finance approaches from Moneysaving Challenge

I’d never really taken the time out to analyse the different approaches to improving your financial situation, but MoneySaving Challenge did some of the the legwork came up with this intriguing summary

UK Personal Finance Blogosphere
UK Personal Finance Blogosphere, Source:

It’s reasonably obvious that frugality is at the opposite pole to consumerism, and indeed money management is also an antidote to consumerism. It did make me wonder, however, wherther frugality is a hazard to growing wealth. Although it’s a small sample, it indicates that British personal finance is sparser on the growing wealth axis than the American PF scene. Although the American Dream has taken a serious hit over the last few years, perhaps the myth of continuous progress is helping people in the States feel more chipper about their plight.

Some of the same optimism, though in a more understated British way, is displayed by Monevator who is still upbeat by the end of Gruel Britannia, leading one commenter to observe he may “see sunrise as a bullish indicator“.

Perhaps that’s where I’m going wrong…  There is also the implication that frugality is not necessarily the best way to growing wealth, and this is another notable difference with US perspectives, there tends to be a stronger bias to increasing your income rather than cutting spending. This wasn’t my experience; I only started to build significant financial assets after taking an axe to spending. For most of my working life I was building non-financial assets, in particular buying out my mortgage. Cost control worked for me.

I also observed an interesting gender distribution on the plot, let’s just say that the distribution does not appear to be gender-neutral to me. And that’s all I’m going to say on that front, but it is interesting what areas are focused on by the ladies and the guys 😉 For the sake of clarity, I don’t think this is because MSC imposed this distribution, I’ve observed it in the PF blogosphere as a whole.