Practicing minimalism to improve finances
Credit to Author: JOSH MASCARIÑAS| Date: Wed, 23 Jan 2019 16:18:10 +0000
At some point in your life, you will find yourself dealing with a lot of clutter at home. Admit it, you find decluttering a tedious task. You convince yourself that you need every little thing in your possession. It’s hard to let go of an object especially if it has sentimental value. Even if you don’t use certain items anymore, it’s the memories that you cling to, and having that particular item helps you reminisce good times.
“I’ll start segregating things as to what I need and what I don’t need anymore,” is the mantra you often say to yourself. If you’ve watched the popular Netflix show “Tidying Up with Marie Kondo,” the Japanese decluttering expert and best-selling author advises her audience to let go of the things that don’t spark joy. She gave the deciding factor on how one can declutter through her Konmari method.
What Kondo talks about involves minimalism. It’s a lifestyle in which you carefully think about the items that bring value to your life and abstain from those that don’t. Think about the impact of living with minimal needs. This will eliminate the distractions in your life. Practicing minimalism refocuses your approach on finances.
Focusing on minimalism limits the items you own. This helps you to spend less on buying items, allowing you to increase your savings. With this, you can keep your money for other finance-driven goals like a dream vacation.
Apart from helping you save money, minimalism also gives you more space. After decluttering your home or apartment, you’ll realize that it’s actually more spacious for you. If that’s the case, you can consider getting a smaller space that is enough for you and your belongings. This also allows you to save money on rent.
After decluttering, sell the items you no longer need. If you have the time and extra space at home, a garage sale is a good idea to let go of your then-belongings. The money you’ve earned from the sale can help you get rid of other financial clutter in your life like debt. You can also keep it and build an emergency fund, or for retirement savings.
If you want to take financial minimalism seriously, follow personal finance expert Kim Lowry’s advice: to track your spending on a monthly basis. Write down how much you’ve spent and all the products you’ve bought. After a month of practicing this method, perform an audit on your list. This way, you can determine consistent spending habits that are insignificant to you. After evaluating your spending, you can eliminate such spending habits from your lifestyle.
Minimalism challenges you to spend less than your monthly salary. You should know how much money you truly need to survive. Anything else beyond that are just wants.
To delve deeper in spending, you need a budget. Create a spreadsheet to list specific items and expenses. Use this sheet to plan meticulously and keep track of everything you’re spending on. Mindful shopping habits can also improve your budget. Control your spending. Master your cash flow and always document where your money goes. Lastly, make sure you spend on something that is relevant to your needs.
While you embrace financial minimalism, organize your finances by automating bills payment. Enroll your bills in an online banking app so you can credit the payment on your bank account. You can also use a third party bills payment app. Avoid missing due dates and penalty fees by paying your bills three to five days in advance.
Minimalism can improve your finances. There are other methods you can do to avoid financial clutter and unnecessary spending. These are just practices that can lead you to a simpler lifestyle. Practicing financial minimalism comes with good money management skills that can result to greater benefits. Focus on what brings you value and apply it to your spending, saving, and investing habits. Just don’t lose sight of why you’re doing these things.
Josh Mascariñas is a content writer at MoneyMax.ph. Save money on car insurance, credit cards, and loans when you compare and apply at www.moneymax.ph! Visit our website to know more.
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