Being a minimalist isn’t really about less stuff. It’s about creating space in your life to do and have more of what you love.
Personal finance is one area of everybody’s life that minimalism can help tremendously. It can help you to stay focused on your financial goals, remind you of what’s actually important, and ultimately save a good bit of money in the long run.
Below are 4 ways that the minimalist lifestyle can boost your savings.
You might be wondering how minimalism and more focus could possibly lead to more money in your bank account.
Well, if you’ve followed the principles of minimalism effectively, you should have more time on your hands to do things you enjoy doing.
For example, if you like running a business and love the minimalist feel of RV’s, you might use your extra time to focus on that RV rental business you always wanted to start.
The key here is directing that additional focus towards something productive and financially uplifting.
Spend Less, Save More
Next is the obvious way that minimalism can save you money. If you buy less stuff, then you are going to spend less money, which creates more money to save.
Minimalism encourages you to become fully aware of your spending habits. Do you really need another pair of shoes when the ones you have work just fine?
If you don’t need something, or if it doesn’t add to the quality of your life (other than satisfying your impulse to buy), then minimalism teaches you not to buy it.
Instead, take your extra cash and tuck it away for safe keepings – an emergency stash is a great place to start.
Fewer Monthly Bills
“The more you own, the more it owns you.”
By embracing the minimalist lifestyle, you’re likely going to have way less things and a much smaller home. You won’t have 50 subscriptions to different magazines, each costing $5 per month, which adds up shockingly fast.
Less monthly overhead means more money for you to save and less stuff for you to deal with.
Automating Your Savings
The true magic of minimalism comes in the vast number of ways you can apply it to everything you do.
Automating your savings is one perfect example of personal finance minimalism used effectively.
If you pay yourself first at the beginning of each month, you likely won’t notice the money is even gone. Before long, your savings account will have a nice chunk of cash that you can use for emergencies, vacations, or whatever suits your fancy.
You will want to make sure that you choose an amount that’s both substantial, yet viable for you and your budget. Even just $50 a month can go a long way towards a proper savings, especially if you’re totally new to the concept.
Embracing the minimalist lifestyle can positively impact your life in a lot of ways. Keep in mind the 4 points you just learned above and consider implementing minimalism into your routine.