If you’re looking for a way to save money, while saving the environment (or if you think being eco-friendly is too expensive), adopting a minimalist lifestyle might be the answer you’re looking for. Minimalism is all about living with less, and this can translate into significant financial benefits. By reducing your purchases, you can free up money for the things that matter most to you.
One of the major benefits of adopting a minimalist lifestyle (equipped with frugal habits) is that it helps you develop a more mindful approach to spending. By embracing minimalist living, you’re more likely to think carefully about each purchase you make. This means you’re less likely to spend money on things that don’t add value to your life, and more likely to invest in experiences and items that truly make you happy.
But adopting a minimalist habits is just the first step. To truly start saving money, you’ll need to put practical strategies in place to reduce your expenses and declutter your finances.
Table of Contents
The Minimalist Mindset and Saving Money
I guess I should preface this with, I’m not a minimalist. And I don’t believe in being an extreme minimalist. I mean, honestly, our furbabies probably wouldn’t be happy if we downsized to a tiny house. The dogs love to run around with their zoomies (even though they have a whole-ass yard), and the cats are just not here for their space being invaded.
If you’re looking to save money and live a simpler life, adopting some minimalist habits could be the welcome addition and solution you’re looking for. Minimalism is all about living with less stuff, being intentional about the things you buy, and the way you spend both your time and money.
Understanding Minimalism
Minimalism, as a whole, is a lifestyle that values simplicity and intentional living, with a side effect of frugal living. It’s about shifting your focus to the “important” things in life and letting go of the things that don’t; with “important” being your own definition of the word. This can include your physical possessions, but can also extend to the way you spend your time and the relationships you have in your life.
Essentially, minimalism is about living with intention and purpose, and I think we all could use a little bit more of that in our lives. It’s about being mindful of the things you bring into your life, and your home, and making sure they align with your values and goals.
Adopting a Minimalist Approach
Adopting a minimalist approach, in any facet of your life (not just all of them), and especially to the financial piece of your life, can help you save money, enjoy the things you do have more, and live a more fulfilling life. Here are some tips to help get you started:
- Evaluate your spending habits: Take a look at your spending habits and identify areas where you could cut back. This could include eating out less, canceling unnecessary subscriptions, or buying fewer material possessions. We have a disproportionate wine budget, so we’ve been trying to cut our spending on that every month to save more money for our financial independence, retire early (FIRE) goals.
- Simplify your possessions: Take a minimalist approach to your possessions by decluttering and letting go of things you no longer need or use. This can help you save money by reducing the amount of stuff you need to maintain and store. It also can eliminate buying duplicate items since you’ll have already gone through all the items you have. As we renovate several areas of our house (master bedroom closet, and now the kitchen), we have no desire to put items we don’t use, those that are broken, or items that are duplicates back into our beautiful, finished spaces.
- Focus on experiences over things: Instead of spending money on material possessions, focus on experiences that bring you joy and fulfillment. This could include travel, spending time with loved ones, or pursuing hobbies and interests. These are my FAVORITE gifts to give out, especially to my niece and nephews. Eventually we all grow out of toys or books, or other gift ideas for children, but the year that they got to the zoo every month or the learning experiences they had while building something cool are the ones that leave lasting memories.
The Psychological Benefits
As well as helping you to spend less, if you embrace minimalism habits, this can also have psychological benefit in your life. Simple living, sometimes referred to a living with less, can help you feel more confident and in control of your life. And this is before we even talk about the brain space you make by decluttering and simplifying your life.
So much extra space to think of all your upcoming projects {and how best to present them to the Boyfriend}. Minimalism helps reduce stress and anxiety too by eliminating the need to constantly manage and maintain a large number of possessions. Plus, by decluttering, purchasing high quality items, and being conscious of your purchasing decisions, you actually create more space in your home (and your mind), which leads to a sense of calm (at least for me).
By adopting a minimalist approach to your purchases and your finances, you end up saving money and gaining massive mental benefits. I think it is a nearly universal goal that we all want to be a little bit more intentional with our time, money, and possessions and truly focus on the things that we want to take up space in our lives.
Practical Money-Saving Strategies
If you’re looking for money saving tips, adding some simple minimalism aspects to your life can be a great way to do it. By simplifying your life, your purchases, and adopting “frugal minimalist” habits, you begin to focus on what’s truly important to you. And then you end up with more money in your savings account.
Creating a Minimalist Budget
The first step to saving money with minimalism is to create a budget; I effing hate budgets and they become more complicated as we take on more adult-roles in our lives. I travel for work, and my work expenses are put on my personal credit card and then reimbursed six weeks later. But the reimbursement comes into my main bank account…making mainstream budget apps slightly more complicated to set up.
I’ve tried….and given up…multiple times.
But, by creating a budget you are focusing on your needs rather than your wants and cutting out your need to buy things, or other unnecessary expenses. Start by tracking your spending for a month or two to get an idea of where your money is going.
Then, create a budget that includes only your essentials, such as housing, food, utilities, and transportation. Once you’ve got your expenses, you can add in any variable expenses, and then you are left with the ways minimalism save you money. Be sure to set aside some money for savings (including retirement) and emergency expenses as well.
The Boyfriend pulled our joint bank account expenses for the last quarter of 2023 (my work expenses go to my personal bank account), and realized that we spent our money on (1) home projects and then (2) wine. I should preface this with, we don’t really drink that much wine, but when we do buy wine it’s 12 different, very amazing bottles…so it ends up being an expensive case of wine. Suffice it to say though, even though we don’t drink that much wine, we’ve been more cognizant of our wine spending this year.
Quality Over Quantity
Another way minimalism can save you money is to focus on quality over quantity. Instead of buying a lot of cheaper, low-quality items, invest in a few high-quality items that have the durability and will last so much longer. This can apply to everything from clothing and furniture to appliances and electronics. This saves you so much freaking money, while reducing your waste production at home, and helps you live a more sustainable lifestyle.
Reducing Recurring Expenses
Finally, one of the most effective ways to save a ton of money with minimalism is to reduce your recurring expenses. This is a little outside of my sustainability-expertise, but includes things like subscriptions, utilities, and credit card bills. You can live frugally by taking a look at your monthly bills and see if there are any services you can cancel or reduce. For example, you might be able to switch to a cheaper internet provider or cancel a {streaming service} subscription you’re not using. You can also try negotiating with your service providers to see if you can get a better deal.
By following these practical money-saving strategies, you can start living a more minimalist lifestyle and saving money in the process. I’m hoping to use these methods, in conjunction with our sustainability goals, to get out of debt (student loans and mortgage) as quickly as possible. Remember, minimalism doesn’t mean depriving yourself of the things you need, want, or love, but rather focusing on what makes us happy and we deem truly important, while cutting out everything else.
Decluttering Your Finances
Minimalism is not just about decluttering your physical space, it can also help you simplify your life, including your finances to help save some money. By reducing your financial clutter, you can gain a better understanding of your financial situation and make more informed decisions. Honestly, this is probably what I need to do in order to get started with one of those budgeting apps. If I streamline and simplify our monthly expenses, then maybe I can sort through everything and set a monetary limit to things like our home project and wine expenditures.
Eliminating Debt
Debt can be a major source of financial clutter. If you have multiple credit cards or loans, it can be difficult to keep track of all your payments and due dates, and it becomes easy to forget just one thing and POOOF all your hard work… One way to simplify your debt is to consolidate it into a single loan or credit card. This makes it easier to keep track of your payments, but it can also help you save money on interest. I’m not a financial advisor or anything like that, but honestly consolidating my credit card debt (all those books they make you buy) when I was straight out of college, really helped keep everything straight in my head and simplify my bills at a time when many adulting things were hitting me at once.
Another way to eliminate debt is to “debt snowball method” where you prioritize paying off your highest interest debts first. And then, once paid off, using that money to tackle your next highest interest debt. By focusing on paying off your debts with the highest interest rates, you can save money and reduce your the financial clutter taking up space in your brain!
Simplifying Accounts and Investments
Having multiple bank accounts and investment accounts can also add to your financial clutter. I 100% feel this one. I told the Boyfriend last week, there are just too many accounts. I don’t know if my brain actually thinks that or if it was some subconscious ploy to combine all of our expenses (we still have separate and joint accounts)….I’m not quite sure; I’ve been watching a lot of old Sex and the City episodes lately and, while those girls are crazy, I can definitely see some odd “girl-feelings” being surfaced due to the influence of these New York girls.
You could definitely consider consolidating your accounts to make it easier to keep track of your money. Or you could simplify your investments by choosing a few low-cost index funds (or ethically managed funds) rather than trying to pick individual stocks.
Financial minimalism and physical minimalism (owning less stuff) actually go hand-and-hand and areall about simplifying your life and focusing on what’s important. By reducing your financial clutter, you can gain a better understanding of your financial situation and begin to make more informed purchasing (and investing) decisions. This can help you save money, improve your credit score, and achieve your financial goals.
Adopting Minimalism in Daily Life
Minimalism is not just a lifestyle (or maybe a group of habits), but a philosophy that can help you save money and lead a more fulfilling life. By adopting minimalist habits in your daily life, you can make conscious choices about what you own and how you live.
Minimalist Home and Design
A minimalist home is not only aesthetically pleasing but also practical. By owning fewer possessions, you end up reducing clutter around your home, saving money, and creating a peaceful and creative living space. Tips to design and decorate your home can include ideas like focusing on functionality and simplicity. Choose furniture that is durable, easy to maintain, and timeless. Consider investing in quality pieces that will last a lifetime instead of buying cheap, breakable, or disposable items.
Conscious Consumption
Minimalism encourages conscious consumption, which means making informed purchasing decisions, being mindful of what you buy, and how you intend to use it. Before making a purchase, ask yourself if you really need it. Avoid impulse buying and instead opt to “buy it for life” with items that are high quality and serve a specific purpose. When it comes to clothing, consider creating a capsule, timeless wardrobe that consists of versatile pieces that can be mixed and matched for years to come.
Minimalism and Eco-friendliness
Minimalism and sustainability go hand in hand, as much as I’ve tried to avoid sounding like a minimalist; I’m absolutely not. I’m trying to take the idea and make sure everything I purchase has a purpose and that I make informed, sustainably-minded decisions.
By owning fewer possessions, you reduce your environmental impact and carbon footprint. When shopping, choose eco-friendly products that are made from sustainable materials and have a minimal impact on the environment. Additionally, focus on reducing waste by recycling, composting, and reducing your consumption of single-use items.
Final Thoughts on Ways Minimalism can Save your Money
By adopting minimalism in your daily life, you can save money, reduce clutter, free your mind from all the constant chaos, and actually live a more fulfilling and exciting life. Start small by incorporating these tips into your routine and see how they can positively impact your life.
Minimalism can help you save money by encouraging a more mindful approach to spending. To truly save money through minimalism, you’ll need to put practical strategies like a budget in place to reduce expenses and declutter your finances. By adopting a couple minimalist habits, you can end free up money for the things that bring you joy and matter most to you.
Leave a Reply