With the growing popularity of the KonMari Method™ and Minimalism over the last few years, many of you might be wondering, what is minimalism and how does it apply to money? According to the Becoming Minimalist blog, minimalism is about living with intention and purchasing only what you need. The effects of minimalism on money is huge, and this is why I started this blog.
I have lived with a minimalist approach towards spending for years now and it has flourished into less debt (my only debt is my mortgage), less stress, and more savings. Who wouldn’t want that? According to The Business Insider, the more options we have, the harder it is to make a decision. So in the morning, if we’re picking out our clothes and we start the day off overwhelmed by our choices, it will trickle down throughout the day. The article also states that the “ideal number of options is probably somewhere between 8 and 15.” Our lives are already filled with choices, so minimalism is a way of simplifying our lives where we can.
So why do we tend to buy more than we need? Is it because of status? Do we look for happiness in material possessions? Take a few minutes to think about why you go on shopping sprees and how you feel afterwards. Does it truly bring you happiness or do you end up feeling guilty after?
How I became a money minimalist
I remember begging my parents for a pair of Uggs when I was younger. Everyone around me flaunted theirs and I thought I had to have a pair to fit in. That wasn’t the only materialistic thing I thought I needed. I wanted a Tamagotchi (remember those?), Abercrombie clothes, an iPod, etc. Everything that my classmates owned, I thought I wanted as well. As an immigrant, I struggled with feeling like an outsider when I was younger. It wasn’t until I grew older that I realized the brand of clothes and expensive toys had nothing to do with earning respect or real friendships. I am grateful my parents did not cave and buy me the materialistic items I thought I needed. Their frugality taught me to save my money and focus on internal rather than external growth.
Two years ago, my thrifty nature was put to the test. I could barely cover my rent some months and my financial troubles were starting to affect my relationship with my boyfriend. We had difficult discussions about who would have to sacrifice their dream to support the other. Would I have to give up my dream of being self-employed in order to support his dream of getting his Bachelor’s degree? I was forced to become more minimalist than I had ever been. I cut out all unnecessary spending and saved like crazy.
It took me five months to close on my first sale in real estate. Five months of not having an income. My savings dwindled away and I learned how to create a meticulous budget. After that first sale, it took me another four months before my next closings. I couldn’t have gotten through that first year without being mindful of my spending, working some side hustles, and letting the fire inside guide me.
Fast forward a year and I had progressed enough professionally, and saved enough money to be able to buy my first home. Our mindset can drastically affect the outcome of our lives. Money minimalism is gradual and requires patience, but if you stick to it, you will reap the benefits.
How money minimalism will change your life
Money minimalism will not only help you save more money, but it will make you happier and lead to a simpler lifestyle. If you own less items, you will have less laundry to do, less cleaning, and more time to enjoy what matters to you. When you aren’t wasting your money on unnecessary items, you can allocate the money towards travel, or items that you truly appreciate. You will be able to invest more, whether it’s in real estate or in stocks. The possibilities are endless and adopting a minimalist approach to money can significantly alter your life.
Tips on becoming a money minimalist
Becoming a money minimalist takes time and a mindset shift. I recommend taking a “slow and steady” approach so that you are not overwhelmed by the changes. Check out my article about online shopping, as well as the following tips:
- When do you buy the most items? Is there a pattern? Is it when you feel sad, discouraged, or angry? Once you figure out the root of your problem, it will be easier to tackle it. Many of us use retail therapy to mask what we’re truly going through.
- Go through your closet monthly. If you find clothes you have never worn, donate them or sell them and declutter your closet. This will help you realize how many clothes you actually own and remind you that you don’t need that new pair of jeans or cheetah print top.
- Do not purchase a new skincare product UNTIL you have gone through your current one. I love skincare and it is tempting to try the newest cleanser or moisturizer, but I have to remind myself to finish what I have before purchasing a new item.
- Review your budget. If you allocate less money for shopping, you will spend less.
- Remind yourself of the bigger goal- what would you do with the extra money? Would you save for a new car? Maybe even a house?