Minimalism is a lifestyle that focuses on reducing the clutter in your life, including external objects and other distractions. People who pursue this lifestyle will try to remove distractions from their lives.
1. Clarity about personal core values
Minimalist living can be understood as letting go of the unimportant things in your life and focusing on what needs to be done. The things that are important to you will often revolve around your core values. Once you know that, they can help simplify your life, including finances.
For example, you like to travel, but you burn money on unnecessary shopping trips and worry about yourself when you see your account balance dwindling. Instead, put extra money in your travel bill to work on experiences that really make you happy.
On the other hand, being able to give and help others is one of the things that really makes you happy. But your wardrobe has “spent” a lot of money on unlabeled clothes and you may not really like them. In that case, donate the items to those who really need or want them.
A minimalist lifestyle can help you learn your core values. If you haven’t identified your core values yet, teach yourself to ask these questions. What and which experiences are really important to you? If you look at how you spend your money today, does your spending align with those values?
2. Minimalist Lifestyle Helps You Spend Less
When it comes to financial minimalism, it can make you spend less. Everyone has probably had the situation, buying things because they are cheap and seem like a good bargain. However, this can lead to over-buying or things we don’t need in the first place. Focus on your own needs (the things that really matter), it will become the focus and help you buy real bargains. This way you buy less and focus on product quality instead of quantity.
3. Pay off debt faster
In keeping with the previous view, buying less as part of minimalism means more money to invest in the things that are important to you. For example, get out of debt!
The more money you put into paying off debt, the faster you can get out of debt and start working on your financial and life goals. It’s a win-win approach: buy less, accumulate more, pay off debt, and build wealth.
4. Live below your means
A minimalist lifestyle can help you live below your means. It helps prevent impulse purchases and teaches you to appreciate your experiences instead of focusing on material things. Again, this will teach you to determine your needs versus wants, cutting down on unnecessary spending and potentially saving more money.
Minimalist living requires you to take a step back and think about your financial situation. For example, some people decide to downsize their living space for a more affordable home.
If you’re living beyond your means, a minimalist lifestyle can help you make the changes you need to get into better money-making habits.
5. Peace of mind and satisfaction
Peace of mind and contentment is what the minimalist lifestyle is sure to bring you. Reducing clutter and mindless spending can really eliminate stress. And because you only spend money on things that really make you happy, you will have a feeling of happiness and contentment.
You don’t have to worry about hosting, maintenance, or even paying for things you don’t even really want in the first place. This, in turn, helps to deal with feelings of lack of satisfaction.