At first glance, minimalism seems to have a simple goal: own fewer things. But minimalism is so much greater than that—it’s about re-evaluating your habits, motivations, and pursuits. This way, you get to value things or people who truly matter. If applied to finances, the minimalist lifestyle can even help you become wealthier. Being mindful of how you spend, save, and invest money can take you places.
Buy only things that have real value
Most items we buy begin to decrease in value the second we own them. Clothes, electronics, and cars worth less than their price tag as soon as you bring them home. You can sell them in the future but at a much lower price. While those items are necessary, make sure to allot funds for other things that have real value, such as stocks, bonds, and real estate. Their value may retain or even increase over time.
Think whether you really need to upgrade
Many people fall into the trap of getting the latest iPhone or upgrading to a newly released car—even when their old phone or car is still running fine. There’s a satisfying feeling to hop on the latest trend. And brands count on that motivation to convince you to upgrade even when you don’t really need to do it.
Learn to enjoy a product for its full life cycle. This way, you can maximize its full value. Also, determine whether you truly need to upgrade. Some upgrades are necessary and practical, such as installing window film, insulating your garage, or any home upgrades that can lower your energy bills monthly. But often, getting the latest or the greatest isn’t worth the money; instead, learn to invest money properly.
Simplify your finances
How many credit cards do you use? Is it difficult to track your expenses? If it is, simplify your finances. For one, cut down to one credit card. Pick one that has attractive rebates or reward system and use it for necessary purchases. It will be easier to monitor your spending, and you can maximize the rewards. Also, utilize apps that can help you budget and track spending more efficiently, so you can save more money.
Free up time for extra income
When you have less to organize, clean, and attend to, you have more time for other pursuits. You can use that time to either get a second job for extra income or have more rest to improve your productivity in the office and get promoted quickly. And if you use your additional earnings to reduce debts, fund your retirement, build up a savings account, and invest your money, you will be one step closer to a comfortable, if not wealthy, life. Securing your future starts with being smart how you spend your time today.
Minimalism is about being mindful of every aspect of your life, including your finances. As you discover what’s most important to your life, you will find it easier to decide how and when to spend your money. In turn, you can have better control of your future—you will no longer need to live paycheck to paycheck.