Did you even know you can practice financial minimalism? Well, you can! You can create a minimal life for yourself in all aspects of your life – even your finances.
Living a minimal lifestyle means you only have or use things that you absolutely need to survive. When it comes to your finances, there are ways you can create a more minimal life for yourself.
What is Financial Minimalism?
Financial minimalism is when you only buy or invest in things that add value to your life or serve you in some way that you can survive without. If you don’t need something to survive, you shouldn’t be spending your money on it.
Practicing financial minimalism is one of the best ways to practice minimalism in your life. Saving money and investing is going to ensure you will prosper for the rest of your life, and maybe even for generations that follow you.
There are certain things you can do to practice and live a financially minimal life, and we’re here to help and educate you on it.
10 Simple Ways to Practice Financial Minimalism
1. Get rid of your subscriptions
We all get suckered into monthly subscriptions, and yes sometimes they are worth it depending on what you’re into.
Look through your recent statements and write down all the subscriptions you have and how much they cost you.
Determine which ones you can get rid of save yourself some money each month and practice financial minimalism and save yourself from having to make another payment each month.
2. Calculate your bills the old-fashioned way
This is one of the best tips we have when it comes to achieving financial minimalism. With the way we use technology to pay our bills, it can be easy to forget what we pay for each month and when.
At the beginning of each month, grab a good old pen and paper, and write down each of your bills and how much they are. Once you total them up, you may be shocked at how much you pay, and it can make you more money conscious.
One of the best ways to make money without having to do much is to invest. Do your research or speak to a professional and start investing and earning money on your own money.
You don’t have to do much with investing – you can invest one time or monthly and make it so the money comes automatically out of your account.
4. Cut down on your credit cards
Credit cards are the number one issue when it comes to anybody’s finances. If you have 10 credit cards and you only use 4 of them, cancel the other 6 cards so you aren’t tempted to use them.
5. Consolidate your debt
If you have student loans, a car loan, or a mortgage, consolidating your debt into one loan creates the financial minimalist life you want. You’ll only have to worry about making one payment and that’s it.
6. Only have one bank account
Having to manage multiple different bank accounts can be overwhelming, so if you have multiple accounts at different banks, pick your favorite one and close out all the other ones.
This way you only have to worry about managing one account and going to one bank.
7. Pay cash when possible
Credit is the enemy in the finance world. If you notice you’re having trouble keeping your credit card bill low, stop using it for a month and only use cash.
We can guarantee that you won’t be spending nearly as much money as you would if you were using a credit card.
8. Get out of debt
This is easier said than done, but one of the best ways to achieve financial minimalism is to get yourself out of debt.
This isn’t something that will happen overnight but make it a goal of yours to pay off your debt as quickly as you can.
9. Do free things
Not only will this help you to enjoy the finer things in life such as nature and your town, but it’ll also you achieve your goal of financial minimalism.
Instead of going to brunch, go for a walk and find a new park in your town. You’ll save money and live a simpler life.
10. Sell things you aren’t using
If you have furniture, books, tools, appliances, etc. that you aren’t using, sell it!
You’ll achieve a minimalist lifestyle in more than one way – you’ll declutter your space and you’ll achieve financial minimalism.
The Importance of Financial Minimalism
This type of minimalism is important because it can allow you to achieve peace in your life. Not having to worry about money and finances is one of the best ways to live and experience true happiness.
Creating a financial minimalism lifestyle makes your life easier – you don’t have to make an excessive amount of payments, you don’t have to worry about paying your bills late and accruing interest, etc.
Financial minimalism ideology is that the less you have to do and the less you have to worry about, the better. Nobody wants to stress every month about how they are going to pay their bills, or if they’re going to forget to pay a bill.
By simplifying your finances, you can alleviate that stress and worry so you can enjoy the smaller things in life.
Our Final Thoughts
Financial minimalism is something that we think everyone should start to practice to ensure you have a long life of health, wellness, and wealth.
Creating a simple life regarding your finances is one of the best ways to escape your stress and worries when it comes to if you can afford things like trips, cars, houses, etc.
Living a meaningful life doesn’t only have to do with the amount of money you make. You can make a lot of money and not have a single ounce of happiness in your life.
Creating financial minimalism for yourself can help you achieve your goals and achieve true happiness.