Budgeting tips for the conscious consumer

Written by James Jennings for Australian Seniors

The phrase ‘conscious consumer’ may sound like yet another empty marketing term that seems to be describing people who simply buy stuff when they’re awake – not exactly an uncommon practice – but if you’re reading this, there’s a high chance you’re already one of them. 

Research conducted by Monash Business School’s Australian Consumer and Retail Studies last year found that more than half of Australian shoppers say sustainability is an important factor when making a retail purchase, with those aged 55 and over being significantly more likely to buy locally-sourced or produced products compared to other age groups. 

A conscious consumer, then, is quite simply a person who considers the ethical implications around goods or services they use, with concern for the environment typically top of the list. 

Backing the best brands

“They’re someone who is using their purchasing power to have a positive influence in terms of impact,” says Mark McCrindle, a social analyst and founder of research company McCrindle.   “For some, that’s around fair trade. For others, it’s around sustainability and environment or wanting to support local organisations and family businesses.”

“Ultimately, it’s values that drive this cohort of consumers to make the most of their spending so it can bring about beneficial outcomes. If those values aren’t aligned, we now see the power of consumers, particularly those connected through social media, who can not only make brands, but significantly impair them as well,” Mark says.

“I think of a conscious consumer as a consumer who is voting with their wallet; they understand the power they have in their purchases, and they’re exercising it and they feel empowered to do so,” says Carolyn Butler-Madden, founder of The Cause Effect  , a consultancy for business leaders who want to build meaningful purpose into their organisations.

Is it good for budgets?

With the cost-of-living crisis facing many Australians being such a pressing concern, the question remains: despite good intentions, can we even afford to be conscious consumers? Carolyn believes so. 

“Traditionally, I think purpose has had a premium attached to it, but that is changing because it can’t afford to stay that way,” she says. “To have a purpose is not enough to be successful; you’ve got to deliver on quality and price. It can’t afford to be out of reach to consumers.”

The problem with cheap products

Anders Sorman-Nilsson, futurist and founder of the think tank and trend analysis firm Thinque, says that many people are willing to pay a bit extra for something that will last and be a more sustainable choice. “Cheaper products may help save you money in the short term, but the longer-term effects can be disastrous,” he says. “My kids were given some plastic stuff from a discount store recently and these things were broken before the end of the day. 

“It’s also just flushing money down the toilet. Wouldn’t you be better off spending a little more, because the total cost of ownership over the lifespan of the product is going to make a positive impact over a longer period?” 

How to drastically reduce prices

Those wanting to save money and support businesses doing the right thing may want to give their dollars to those that engage in the ‘circular economy’, a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products for as long as possible. 

Brisbane’s Yas Grigaliunas is an award-winning circular economy pioneer and founder of Circonomy, which brings together leading retailers, resource recovery partners, resale channels and everyday Australians to give new life to still-useful things, usually at a drastically reduced price. 

“The cost of living is really tough right now so I feel like I need to amplify the work we do, which is to offer all this amazing stuff to people for a lot less than they’d typically pay, and for things that may have been discarded otherwise,” she says.

Yas adds that becoming a conscious consumer can start with small steps, including buying fruit and vegetables that would otherwise be thrown out. “We can buy ‘ugly produce’ in our major grocery stores now because we’ve had conversations about dumping bananas that are bent the wrong way and people are not okay with it,” she says. “It’s bringing a consciousness that it’s not perfect and that’s okay, it still tastes the same and it can actually feed people with what was once our waste.

“I think it’s these little things that are important. Look at your own life and say, ‘What can I do differently? How can I help contribute to a more conscious consumption, both as shopper and as a seller of things I don’t want or need?’”

Better buys

According to Anders, anyone wanting to become a more conscious consumer could “buy less, buy better”, as well as support home-grown businesses. “One great way to start is just to buy local. If you do, your carbon emissions are bound to be lower. So, if you’re always buying French wine, maybe think, ‘Could we buy a really nice Aussie biodynamic bottle instead?’

“I would also look over your electricity plans and shift to renewable energy in your home. If you don’t already have solar panels on your house, do it. We have the highest solar panel installation per capita of any country in the world, so go solar – we’re flush with it.” (Here are some other ways to potentially save money on your power bill.)

Yas believes that if you want meaningful change, the answer is simple: go out and make it happen. “If you want to make change, go change. If you want to do better, go do better,” she says. 

“And just because we couldn’t do something perfectly today doesn’t mean we can’t take action tomorrow. It’s just about picking what we can do that’s positive and doing that well.”  

More budgeting tips

Some Australians, especially those in retirement, find they have too much junk in their home. Selling these items in a garage sale or on their e-community pages, such as a Facebook page can be a clever way of finding extra income and giving old products a second life.

Older Australians may also want to have a solid plan to help transition into retirement much more smoothly, and consider trying these 20 tips to make their income go further.