Wondering how minimalism works with money? Here are seven ways that minimalism can help you with your finances.
MINIMALISM AND MONEY: 7 WAYS MINIMALISM CAN HELP YOUR FINANCES
I’ve discovered that one of the many benefits of minimalism and living a more intentional life is that it has changed my perspective on money. I no longer see money as one of the most important things in life.
Don’t get me wrong, I was never obsessed with making millions of dollars, but earning an ever-increasing amount of money was one of my benchmarks for success.
The thing is though, minimalism isn’t akin to frugality. It doesn’t mean living with very little or nothing unless you practice an extreme version of minimalism. Instead, minimalism helps you reframe how you think about money and how you spend and save it.
QUICK DEFINITION OF MINIMALISM
Just in case you aren’t well versed in a definition of minimalism, minimalism is a tool for intentional living. It frees you from relying on material things to bring you happiness. Minimalism frees you up from consumerism and keeping up with the Joneses. It allows you to do less and be less busy. Quite simply, minimalism is about finding joy in simplicity.
DOES MINIMALISM SAVE MONEY?
Unless you take on extreme minimalism that involves ridding yourself of everything, minimalism won’t automatically save you money. However, if you use minimalism to prioritise what you own and what you consume, minimalism will help you to declutter your finances, simplify your budget and yes, save money.
8 WAYS MINIMALISM CAN HELP YOUR FINANCES
1. FINANCIAL FOCUS
Setting financial intentions through having a minimalist mindset helps you laser focus on your finances. Once you understand your priorities in life you will be able to better decide how and when to spend your money. Minimalism will also help you spot where you can streamline your finances and make savings.
2. PRIORITISE YOUR SPENDING
Minimalism gives you the space to discover and focus on what is most important to you. It priorities accumulating life experiences over accumulating stuff. The way you spend your money will change and you will find yourself wanting to buy less.
3. NEED VERSUS WANT
A minimalist lifestyle encourages you to live within your means and gives you the ability to differentiate between ‘need’ and ‘want’. The things you need are necessities and the things you want are not. Over time you will find yourself cutting down on the wants. You will quite simply, stop buying so much stuff.
An added benefit of this is that you will find you are spending less and you can either put the money saved towards reaching a goal of financial freedom, towards an experience or simply cut back on the amount of work that you do.
4. FINANCIAL FREEDOM
Minimalism will change your money mindset. Turning your back on consumerism and making only considered purchases will enable you to start paying off any outstanding debt, which in turn will help you towards financial freedom. Financial freedom means you are unencumbered with the need to constantly earn more and more money. You can spend time doing more of the things you love instead.
5. MAKE MONEY FROM CLUTTER
One person’s clutter is another person’s treasure! As you declutter your home you may be able to make money from selling your clutter. Put everything you earn from selling clutter into your savings fund, especially if you need to build up your emergency savings fund.
6. SIMPLIFY YOUR FINANCES
Use a minimalist mindset to simplify your finances and your budgeting. Create a simple budgeting system that works for you. This will help you to make cost savings and save you time on wading through messy finances.
7. DECLUTTER YOUR BUDGET
Use minimalist principles to declutter your budgeting system. Get clear about your goals and priorities. Remove money-wasting distractions from your life. Start a system for paying down your debt, start a savings plan and set up a simple money management system. Read my post on how to manage your money better for my tips on setting up and managing a simple budget.
I hope reading the ways that minimalism can help you with money have been useful, I’d love to know how you get on incorporating a minimalist approach to your finances.