You may have heard about minimalist living. It is possible to reduce stress, save money, and simplify your life by living minimalist.
You are thinking that it is a nice idea. Is it worth the effort? It is not something I could ever do. Even if they make my home look cluttered, I’m too attached to my things. Is it possible to live in a room with a bed and lamp and track the number of socks I own? It would be beneficial to learn to appreciate the small things in life. Nah. It’s too restricted.
Hey – I know where you are coming from.
When someone says you gotta give up the things you worked 50-hour weeks to be able to afford – and stop buying new things you really want – I would be surprised if it didn’t make you angry. I’m sure you can relate to the situation.
What if b>minimalism/b> is more than just counting the number of things you own?
According to the authors of “Minimalism” – The concept of minimalist living is more than that. Living with intention and creating space for what matters most is what minimalist living is all about. It encompasses all areas of your life – and can give you more time, creativity, better health, relationships – and financial freedom.
You are here to seek more financial freedom, right? Let’s start the journey and make the most of it.
Which aspects of minimalists could we borrow to be better off? We can gain more financial freedom and security by embracing minimalist lifestyles. Is it possible that minimalist living could help us make better financial decisions and regain control of our finances? It is possible for minimalist living to help us focus on what is important and prioritize our spending. Is it possible to create better spending habits and have more money? By understanding our financial goals, we can more easily make informed decisions about our spending that will help us achieve those goals and have more money.
You can find the answers to these if you want to. There are lots of resources that can help you learn more. Read on!
What is minimalist living?
Before we look at how minimalism can help create better financial habits, we need to define what it actually is. It’s a lifestyle choice that focuses on keeping the essentials in your life and eliminating anything that doesn’t add value to it.
The Minimalists have come up with an elevator pitch, which sums it up pretty well:
Minimalism helps people question what things add value to their lives. It encourages people to focus on the things that matter and eliminate what doesn’t. By clearing the clutter from life’s path, we can all make room for the most important aspects of life: health, relationships, passion, growth, and contribution.”
It is about tidying up your life to make it more enjoyable and meaningful. You can make your life more fulfilling and rewarding by getting rid of excess and focusing on what really matters. Whether we are talking about your physical possessions, your expenses, or your relationships, that covers all areas of your life. Taking control of your finances is a great way to do that.
Everyone has a different understanding of minimalists. It’s important to remember that minimalists should be tailored to fit an individual’s lifestyle.
My idea of living a minimalist life could be very different from yours, and that doesn’t mean that either of us are doing it wrong. Each of us has a unique approach to living a minimalist lifestyle. I would want to give up all my physical possessions and move into a tiny house – while you may want to own a big house, and simply reduce the clutter in your home, and cancel a few subscriptions.
There is no set of rules that you should follow to be a minimalist, but there are some guidance and advice that can make you feel better about your life. The goal of minimalists is to help you live a more intentional life by focusing on what matters most to you and freeing up time, energy and resources for the things that bring you joy and fulfillment.
Let’s get to the most important point. It’s important to consider all the information before making a decision.
How can minimalist principles maximize your wallet?
Eliminating physical possessions, as well as reducing the time and money you spend on stuff you don’t need, is a part of minimalist life. It is possible to create more space in your life for the things that matter.
Think about all the things you own. Take a moment to be grateful for the things that make you happy. Can you count them all? Do you really need all of that? Evaluate your expenses and see if there are any areas where you can save money. Are they useful or add meaning to your life? Companionship and mental stimulation are essential for a fulfilled life. Are these services just something you see on your bank statement, costing you money month after month? Is it worth the cost to have these services, or is it worth not having them?
Thinking about how much money and time you spend on things like subscriptions can help put everything into perspective. It can help you to remember what’s important in life.
So, here are the 5 minimalist finance and budgeting principles Joshua Millburn (The Minimalists) lives by.
1. Keep your expenses simple
Keeping things simple is what a minimalist lifestyle is all about. A lifestyle focused on creating meaningful experiences instead of accumulating material items is what it is.
Making sure you never spend less than you make is one of the key principles. Saving money for retirement and other financial goals is ensured by this. It can be difficult in practice. It’s important to remember that practice makes perfect, so don’t give up if you find it hard at first. Did you know that 54 percent of Americans spend more than they make? Eek!
Think about what your expenses are, like rent, utilities, gas, health insurance, etc. You can start to plan for other expenses once you have taken stock of these items. Anything on top of that could be cut out.
You may not even notice that you are paying more for things like internet, cell phone bills, and subscriptions. You can save a lot of money by canceling services that you no longer use.
Check out these tips on how to better manage your finances to make your money go further.
2. Create a budget – and stick to it.
Budgeting doesn’t sound like the most fun of tasks, but it does wonders in helping you reduce your spending
Do you know where your money is going? You would be able to come up with an answer if you took a closer look at your finances. Most of us don’t know how we spend our money. To make sure we are making the best financial decisions, we need to take the time to track our spending. We think we know, but we don’t.
Establish a monthly budget in writing. Writing down your budget will help you stay on top of your finances. The need, the want, and the like are the three categories that your spending falls into. To keep your spending under control, it’s important to set a budget for each of these categories. Knowing what is in each category will help you prioritize your spending.
3. Question ALL your purchases.
It’s important that you curb your spending with this minimalist principle. According to a recent survey, Americans spend up to $5,400 a year on impulse purchases! Don’t be one of those people – and you’ll get to financial independence sooner.
When you make a purchase, think about the freedom you have given up to earn money, because earning money takes time. If it’s worth sacrificing your hard-earned funds, consider what else you could have done with the money. Is the purchase worth it? It is important to consider the pros and cons of a purchase before making a decision. Does it have meaning to you, will it make your life easier, will you use it, or is it something you just really want? It’s important that you make a decision based on what’s best for you, not just because you want it.
It is amazing how quickly we can spend money. We don’t realize how much we have spent until it’s too late. It will be easier to pass up an opportunity to spend your money on something new and shiny if you change your mindset to think of purchases this way.
4. Pay your future self: invest!
Thinking of investment as paying definitely makes it seem less daunting. Joshua says there is no better time to invest in your future than now. Investing can be an important part of a plan to plan for the future.
Whether you want to invest a little or a lot, there are so many investment opportunities out there.
Not sure where to start? Break the task into smaller, more manageable pieces if you’re still overwhelmed. Check out these posts:
1. How to start investing with little money
2. How to invest in out of state rental property
5. Prioritize getting out of debt.
You can never really reach financial freedom until you are free from debt. Paying off debt as soon as possible is a key step in achieving financial freedom.
You are encouraged to spend more than you can afford when you are in debt. The best way to get out of debt is to create a budget and stick to it, so you can pay off your debts in a timely manner. If you have a lot of debt, getting out of it should be your number one priority. If you have a plan to pay off your debt, you will be able to reach your goal.
For tried and tested advice on how to free yourself from debt, check out our piece on how to get out of debt fast.
6. Get rid of stuff you don’t use.
We own a lot of things that we don’t need. We could probably get by with less possessions. Pick a few items you haven’t used in a while and get rid of them. You can always donate items that are in good condition. The Minimalists use the 90/90 rule to determine if they really need something, making it a lot easier to spot the things that just add to the clutter in our homes:
Look at something. It’s a reminder of the memories and emotions associated with it. Pick something. Anything. Did you use that item in the last 90 days? It may be time to get rid of it if not. Will you use it in the next 90? Now it’s your turn, I already took advantage of this great opportunity. If not, then it’s okay to let go.”
You could turn the things you no longer need into cash by selling them. You can invest the money in items that you really need. Check out our post on how to make money recycling for ideas on what you could sell, and how.
The main minimalism takeaway for the MM reader
Can using minimalist principles help you on your way to financial freedom? Reducing your spending and focusing on necessary expenses can help you reach your long-term financial goals. Absolutely.
Financial freedom involves making smart financial decisions. Discipline is needed to stick with those decisions and maintain your financial goals. Spending as little as possible and banking as muchas you can be. It is not just about spending wisely, but also investing your money in the right places to ensure a secure future. About investing to create passive income – which will ultimately generate enough money so that you don’t have to work 50-hour work weeks – and can quit working altogether and retire early!
The minimalist principles are headed in the right direction. We can all benefit from a minimalist approach to living.
There are a lot of things to think about if you want financial freedom. The mission of Millennial Money is to make financial freedom attainable to all – and if you haven’t yet, I strongly suggest checking out Grant’s book, “Financial Freedom: A Proven Path to All the Money You Will Ever Need.”
If you are after financial independence, this book will show you how to do it step by step. Anyone looking to gain control over their finances and achieve financial freedom should read this book.
You can stop working and start living. It’s time to make decisions that will benefit you in the long run.