I don’t know about you, but sometimes financial freedom sounds like nothing more than a financial fantasy. After all, we live in a world drowning in excess, so a lifestyle that simplifies all of our spending decisions and makes budgeting and saving easier sounds too good to be true. But the truth is, minimalism is anything but—and it just might be the key to finding financial freedom.
Minimalism is about intentional living. When you approach your finances from a minimalist perspective, you’ll develop better money habits and save more because you’re only buying things that serve a direct purpose. So if you’re ready to balance your finances and simplify your spending decisions, you’ve come to the right place. With these tips, you can apply the principles of minimalism to your money and find financial freedom. Keep reading to find out how.
1. Get clear on what your core values are
The first thing you should do is figure out what your core values are. This will make applying the principles of minimalism to money much easier, as it will show you exactly what you want to spend your money on and eliminate unnecessary spending. To find out what your core values are, sit down and think about what is most important to you. Family, freedom, and balance are some common core values, but you can scan this list and take the time to brainstorm what means the most to you and what you want to prioritize in your life. Once you do this, intentional spending becomes much easier.
2. Start spending intentionally
Contrary to popular belief, spending on purpose does not mean never spending money. Rather, it means spending on things that align with your core values, bring meaning to your life, or that you need to survive. So before making any purchase, ask yourself if it is something your survival depends on and if it will bring you any value – monetary or sentimental.
If family is one of your core values, you may prefer to spend more time with them. This may mean spending more on food, drink or travel at times, but it won’t be a waste of money because it will be something that is in line with what matters most to you. Similarly, if freedom is something you value, you can invest your money in turning your side hustle into a full-time career and becoming your own boss.
3. Clean up your life and finances
Minimalists live below their means because they don’t like excess, but before you start living like this, you need to clean up your life and finances. Take a look at your financial situation and compare it to your spending habits to see how you’ve been overspending and what areas you can cut back on or get rid of. Canceling services or subscriptions you don’t use, preparing meals on Sundays, and hosting girls’ nights at home are examples of how you can do this.
In addition, spend a day combing through your home and putting away items and clothes you no longer need. From there you can sell these items for extra cash or donate them. For the second option, donate them to a charity you care about or, if you qualify for a tax write-off, to an IRS-approved charity. Whatever you decide, you can’t lose – you’ll either get extra cash in your pocket, a chance to give back to a good cause or save money on taxes.
4. Observe a voluntary shopping ban
It’s true that it can be difficult to change your spending habits or differentiate between what you want and what you need when you’re used to living a certain way, but taking a voluntary shopping ban for a week or two can help.
No shopping is exactly what it sounds like: You don’t spend money on anything but necessities, which includes things like groceries, medicine, bills, etc. No shopping on your own will help you get rid of unhealthy money habits, open your eyes to how you’ve been overspending, and show you the difference between necessities and luxuries. Once your shopping ban is over, budgeting and intentional spending will be a breeze.
5. Focus on the quality of what you buy
Spending intentionally and strategically means buying less than the average consumer, which is why it’s so important to consider the quality of what you buy. For example, if you live in a cold climate, you need a good winter jacket. This may mean that you spend more money on the coat when you buy it, but if it is good quality and durable, it will save you more in the long run because it will last for years.
That said, more expensive isn’t always better—there are plenty of cheaper and inexpensive options that work just as well as their more expensive counterparts—which is why it’s so important to know what you’re putting your money into. Always take the time to research what you’re buying – read reviews, compare similar items, and so on.
6. Accept free or low-cost activities
It’s so easy to get caught up in buying “stuff” to fit your lifestyle and whatever interests you, but the truth is, most of it isn’t necessary. Get rid of excess and accept free or low-cost activities. Going for walks instead of an expensive pilates class, visiting a museum instead of your favorite bar, or using YouTube for free guided meditations are just a few examples of how you can stay busy, live a full life, and save.
By embracing free and cheap activities, it shows you that you don’t necessarily need “stuff” to be happy. You may be living with “less,” but your heart and mind will be fuller. And at the end of the day, living with a grateful heart and abundant mindset is the key to manifesting and finding financial peace.
