Adopt a Minimalist Lifestyle to Improve Your Financial Life

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Intro: I have been off backpacking through the Grayson Highlands on vacation this week getting back in touch with my stoic minimalist roots. In my place, I have a guest post about minimalism from Good Nelly of My Way of Viewing. Take it away, Nelly.

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“If you ask me what minimalism is really about, I would say that it’s the altering of values – enter the small doors of minimalism and come out on the other side with big ideas.” – Fumio Sasaki

Whenever I say that I’m trying to practice a minimalist lifestyle, often people think that I’m unhappy as I’m compromising my quality of life. But that’s not so. Instead, it helps me to distinguish between needs and wants. In turn, it helps me to prioritize and value things that give me real pleasure.

We are a like-minded group who tries to practice a minimalist lifestyle to improve our finances. We discuss and decide which habits we need to change so that we can save more and have a better financial future. 

A simple example if you are married can be planning your commute route with your spouse so that you can ditch one car and share the other car without compromising your lifestyle. Apart from saving your gas cost, this habit can help you save the environment as well.

How Adopting a Minimalist Lifestyle Can Help You Improve Your Financial Life?

Now let’s discuss how a minimalist lifestyle can help you have a better financial future.

You Can Create Short and Long-Term Financial Goals

A budget always helps you save dollars and practicing a minimalist lifestyle helps you follow the budget you have planned. It is because you don’t tend to spend extra. A minimalist lifestyle helps you assess what you’re saving for and what you want to spend on. You can also set financial goals that you want to achieve within a definite time frame. A minimalist lifestyle can also motivate you to choose a month when you only spend on necessities and not a cent extra on discretionary items.

You Buy a House that Fits Your Needs Over the Long Run

As a minimalist, when you buy a house you consider what you need at the present along with thinking about what you may need in the future. So, renovating the house to suit future needs is a good option, which helps to save a lot. I feel that it is not an easy job.

When we bought our house, we had to plan a lot. I would also suggest that you wait a bit to buy the right property at the right price instead of deciding on what you’re getting now. Moreover, buying a small house also helps you to save on the mortgage cost. Also, a smaller house means lower maintenance costs and saving a considerable amount.

You Can Travel Without Spending as Much

First of all, as you’ll be carrying less, you can enjoy more as you won’t have to worry much about your stuff. If you wish, you can buy souvenirs as there will be space in your luggage. You’ll also save money in traveling as your carry-on bag will easily fit into the overhead compartment and you won’t have to pay extra for luggage. Usually, the airlines allow one carry-on bag without any extra cost. 

On special occasions, it is ok to splurge a bit and book expensive accommodation. But a minimalist approach is to seek new experience instead of staying in luxurious accommodation. Minimalist travel enables you to choose safe and clean accommodation, and use the money on cuisine and experiencing new things with your family. Less unnecessary spending also helps you to travel more and enjoy life much more.

You Can Limit Your Needs and Wants

A minimalist person tries to spend less on buying items because he/she doesn’t need much. They practice a simple lifestyle. They want to focus more on needs that help them have a good lifestyle. Therefore, it can help them to distinguish needs from wants.

By needs, I mean a place to live, enough food for good health, and clothes to wear. So, we make more subjective purchasing decisions instead of objective decisions. For example, eating at an expensive restaurant is not a need even if they serve healthy food. It is a want. Likewise, buying only branded clothes is a want. Practicing minimalism can help you distinguish this and save dollars, which you can use on the things you value.

You Can Focus on Becoming Debt-Free

Being in debt is the biggest hindrance if you want to achieve financial independence. So, to work towards FIRE (Financial Independence Retire Early), you need to repay your debts fast. A minimalist lifestyle can help you save more and get out of debt faster. For example, if you are struggling with multiple debts, you can opt for bill consolidation and put more money towards paying back your outstanding dues. This can help you manage your finances in a better way.

How Can You Lead a Minimalist Lifestyle?

Here are a few glimpses of adopting a minimalist lifestyle.

• Build an emergency fund with 3-6 months of living expenses.
• Take time out and think before making any purchase.
• Making wardrobes and home clutter-free, that is, free of unused items.
• Giving fewer toys to kids to make them learn to be creative, helpful, and practice sharing.
• Removing excess furniture to make the home more lively and airy.
• Focusing on personal improvement instead of showing off branded attire.
• Saying ‘No’ to anything you don’t want and making your life systematic and organized.
• Putting a limit on the time you spend on social media to avoid distractions.
  
  
  

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Author Bio:

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Two of my favorite minimalist Joshua Fields Millburn & Ryan Nicodemus have helped over 20 million people live meaningful lives with less through their website, books, podcast, and documentary. The Minimalists have been featured in the New York Times, Wall Street Journal, Boston Globe, Forbes, TIME, ABC, CBS, NBC, FOX, BBC, and NPR.

For more depth on minimalism check out https://www.theminimalists.com/minimalism/

Keep the FIRE burning my friends.