If you haven’t heard the term ‘minimalism’, then you’re probably living under a rock. Being minimalistic is an approach which a lot of millennials are accepting with open arms.
What is Minimalism?
As the pioneers of this new age movement define it, “Minimalism is a tool that can assist you in finding freedom. Freedom from overwhelm. Freedom from guilt. Freedom from the trappings of the consumer culture we’ve built our lives around. Real freedom.”
Being minimalistic can be considered the antithesis of being materialistic. You only buy or do things that you need and eliminate the things that you don’t need. Minimalism isn’t about being stingy about money, but more about being selective about your preferences. As a movement it encourages people to take a simple approach to living life. The main objective of this movement is to eliminate clutter in your life to bring in simplistic living.
How is Minimalism relevant to my finances?
Minimalism is as relevant in terms of finances as it is in different aspects of life. Cutting back irrelevant expenses can save you tons of money but that’s not all that minimalism is about. By letting go of things that don’t really matter to you and focussing on those that do, you will be able to achieve your financial goals more easily.
For example, if you love to travel, but you find that you’re spending too much money on shopping and partying, you can prioritize your goals to better achieve them. In many ways, we at KyePot help you do the same thing with our digital chits app. By setting your goal against each saving and borrowing group you join, you are able to track your progress towards that. If for example you want to save money to backpack across Europe, you can make sure that every time you don’t spend money on frivolous expenses, you save a small amount towards your goal.
How minimalism can help you save money.
As mind-blowing-yet-simple as this concept sounds, the major benefit of living a minimalist life is that you save money. Here is how:
- Helps you get a clear idea of financial goals
When you don’t need too many possessions, you become mindful of your expenses. Minimalism can help you practice this mindfulness and make budgeting and financial goals clear.
- You cut back on trivial expenses
When you practice minimalism you tend to only buy things that you need. Hence, by giving up on buying a new smartwatch or by avoiding discounts you can save tons of money and leave room for important expenses.
- Helps you save for future and emergencies
When you cut back on expenses and give up on unnecessary things it reduces clutter in your life and makes room for savings. Through these savings you can create an emergency fund which can act as a cushion during financial emergencies like a loss of job or medical help.
- Sell unnecessary things
Removing clutter from your life can create a healthy mental and financial environment. By selling off the excess in your life, not only are you making money today, but also saving yourself from frivolous purchases tomorrow.
- Expenses are easy
You know what to buy and when to buy and how much to spend since you don’t need too many things. This makes planning expenses easier.
- Gets you out of debt
By prioritizing your expenses and reducing your spends, you’re able to allocate more money towards clearing your debts.
What do you think about Minimalism? Let us know in the comments below.