Guestpost by Chris Pantelli
Minimalism and its variants (tidying up, decluttering,…) is a phenomenon I have been following for a couple of years especially since I have moved around and watched the Minimalists’ first documentary on Netflix back in 2017.
I even wrote a post last year (The Benefits of Minimalism) on how I am trying to implement some form of minimalism into my daily life (this does not mean that I only own 2 forks, 2 chairs and removed the family pictures from my living room 😅). In that post, I talked about the benefits of owning fewer possessions like a sense of simplification and peace of mind but I did not really dive deeper into the financial benefits of minimalism.
And these can also have a profound impact on your life! My friend Chris is here to pick up on the topic where I left it off and he will expand on the financial aspect of minimalism.
So without further ado, here are…
3 Ways Minimalism Is Good For Your Finances
There are many benefits to living a minimalist lifestyle including improving your finances. Many people get caught up in the lifestyle of trying to earn more money and think that how much they earn is a measure of their success.
When you learn about minimalism you understand that the pursuit of money isn’t as worthwhile as you thought. Thinking about how you spend and save money as a minimalist can free you from this trap and at the same time boost your finances!
What Is Minimalism?
Minimalism means you are no longer relying on material things to be happy. It means you are free from consumerism or trying to keep up with the Joneses. Another way to think of minimalism is like this – it’s about living simply and spending your money in a smarter way.
If you take it to the extreme and get rid of everything, then you will easily save money. However, most people don’t take minimalism to this extreme. Rather it’s a hybrid situation that means living as minimally as you are comfortable with, but still spending some money on things you enjoy.
By following the principles of minimalism, you can reduce your consumption, simplify your budget, and have finances that are easier to manage. Doing all this means you should save money. That extra money can be saved, invested, or used to pay off debts quicker. Let’s look at this in more detail.
When you start living minimally your entire attitude towards money and spending will change. No longer will you be constantly wanting more money and more things. Cutting out the materialism means the money you save can go towards paying off debt quicker. This doesn’t mean you can never buy anything instead; you only buy things you have decided that you really want.
A good tip is to try to limit how much credit you have. Credit can be expensive if there are high-interest rates and fees added every month. Although having a credit card is good for emergencies or limited spending. Make sure to use it sparingly, pay it off in full every month, and ideally don’t have more than 2 credit cards.
Living like this means that once your debts are gone you are now financially free! Every month you will have money to save, invest, and use for what you really want.
Achieving this level of freedom means not only can you afford to do what you want, but you have the time. You have the time due to living minimally because you are not obsessed with working more and more hours in an attempt to get more money that you don’t need.
[Jonathan: Excellent tip Chris, going for a reduced number of credit cards should help us get rid of debt more efficiently!]
A key part of living minimally is deciding your priorities. When you know your priorities, you can decide what to do with your money. Minimalism means that you can cut your expenses in the right places and develop a financial focus that will help you achieve your goals.
To start with you will need to create a budget. Make sure to keep it realistic and understand what your life goals are before planning your budget. When creating your budget make sure it covers expenses, includes paying off debts, and plan to save what you can.
As a minimalist, you need to remove as much as you can from your budget. Try to cut all unnecessary spending and concentrate on getting debts paid off quicker.
When thinking about your spending think about what is important. Learning to prioritize spending will help simplify your finances and your budget. For example, many people prefer spending on life experiences instead of buying more stuff. Give careful thought to what makes you happy and include it in your budget.
Think about cutting expenses for things like subscriptions, going out for food or drinks, and clothes. Switching to a cheaper vehicle can also save a lot of money on things like insurance. If you can live without a car even better! Have a look into public transport in your area to see how the costs compare.
One tip here is to try the 30-day rule. If you think you want something put the money aside for 30 days. At the end of the time if you still want the item, then buy it. In most cases, you realize it was something you didn’t want after all and you can save the money instead! Practicing the 30-day rule can be a great method of cutting expenses if you are new to living minimally.
Boost Your Income
One way minimalism can help your finances is by boosting your income. This is because you will need to get rid of all the stuff you no longer need. A great way to do this is by selling all your unwanted stuff on sites like eBay.
All the extra income you earn can then be used to pay off debts or the extra money can be added to your savings.
Selling your unwanted items can be something you regularly do. It will help keep your home clutter-free plus give you some extra money. You might not earn 6 figures from it, but any extra money will be great to help achieve your financial goals.
Another way minimalism boosts your income is that due to spending less the money you already earn will go further. It will feel like a pay rise as you will have more leftover each month!
Minimalism will be a big adjustment at first. In this consumer-driven world, we are used to being bombarded with adverts telling us we need to buy more. Changing your mindset will require some patience and discipline.
However, when you succeed at living minimally the benefits are immense. You can enjoy achieving your financial goals which may include being debt-free, owning a home, or simply not worrying about money anymore.
Importantly though you can enjoy a better work/life balance. As you are no longer chasing money every month, then you can spend less time working and more living!
About the author
Hey, I’m Chris. I have a degree in Business Economics from the University of Liverpool, own a small fast food business, and run LifeUpswing.com. I will help you to make money, save money, and think about money in a way that will give you back your freedom.
I would like to thank Chris once again for giving us additional insights on minimalism and finances, the tips will require some work on your end especially if you start from zero but the benefits are well worth considering 😉!
Oh, and by the way, if you are into minimalism, the second documentary of the Minimalists is on Netflix as well: Less is Now. This one goes more into the stories behind the founders of the movement: Ryan Nicodemus and Joshua Fields Millburn (produced by Matt D’Avella – really like his Youtube channel), I enjoyed learning about their WHY? but if you are new to all things Minimalism I would start with the other documentary first.
What about you friends? Have you recently taken the opportunity to get rid of stuff? Is minimalism something totally foreign to you? Let me know I’ll be happy to hear!
If like Chris you wish to collaborate for guest posting or sponsored posts please do not hesitate to reach out by e-mail firstname.lastname@example.org and of course, for everyone, do follow us on social media as well for more great content, check our Facebook, Instagram, Twitter, and join our e-mail list. I would love to connect with you!