Our economy depends upon people buying things – but this is precisely what lands so many Americans in consumer debt traps. When this debt spirals out of control and becomes unmanageable, otherwise well-off families can find themselves struggling to make ends meet.
On the other hand, smart spending – which includes not only purchasing less, but making the right types of purchases – can save families from this plight (while still keeping the economy clicking along). Families can strike this balance by cultivating a minimalistic mindset.
No matter where you are in your journey to financial freedom, and no matter where you fall on the minimalism spectrum, reaching out for help is always worth your time. A team of debt relief experts at cwdebtrelief.com can help you create a plan to save wisely and live debt free.
What is Minimalism?
The concept of minimalism has been all the rage in American media, thanks in part to moguls like Marie Kondo who tout the benefits of a life lived with less. In short, minimalism involves living simply: embracing an uncluttered life without extraneous spending or acquisition. A minimalistic lifestyle can reduce stress by staving off clutter and excess, but can also help families save money. By cultivating a mindset that only essential, practical items should enter a home, consumers can more easily say no to unnecessary items that drain their bank accounts.
Finding Financial Freedom through Minimalism
While you certainly don’t need to live in a sparsely furnished apartment in order to channel minimalism, deciding how you can scale-down your lifestyle can be tremendously beneficial to you financially.
Start by taking an inventory of the items in your home. What do you absolutely need or love? What is extraneous? For the extraneous items, why did you purchase them? What made you believe you needed them? Were they worth the money you spent?
Next, take an honest inventory of your lifestyle. What activities, events, or luxuries in your budget are essential and necessary, and which are extraneous? What purpose do the extraneous ones serve? How much are they costing you monthly? Annually?
Finally, ask yourself what you would lose by parting with these extraneous items in your home, as well as the extraneous expenses in your family budget. What would you gain monetarily? For instance, if you rounded up all the unnecessary items in your home, figure out how much you could gain by selling them (and plan to save or invest the proceeds). If you cut out any activities or memberships (like the wine club membership you never use or your child’s gymnastic camp that she doesn’t even enjoy), how much would you save each month? How could you invest or save that money instead?
How to Live Like A Minimalist
Once you’ve taken an initial inventory of your lifestyle, there are a few steps you can take to hone a financially healthy, minimalist mindset.
#1: Change Your Views
While you may initially feel daunted at the prospect of living with much less, think of it not as a loss, but a gain: Yes, you are “losing” certain items or lifestyle choices, but you are also gaining space, freedom, time, and money by parting with things that were cluttering your lifestyle. In time, you may realize that the unnecessary items in your home simply took up space and didn’t serve you in any way. Or you may realize that the expensive gym membership made you feel more burdened than free, as you felt pressure to utilize it as much as possible when you might have preferred simply doing a short workout at home. Adjusting your perspective on paring down the excess in your life can teach you to see less as more.
#2: Nail Down What Truly Matters
We tend to live lives of excess: but choosing to live minimalistically requires us to consider what is truly important to us. Zeroing in on what matters most will give you renewed clarity and focus when setting your financial goals. For instance, if you determine that buying the latest gadgets and electronics for your home doesn’t serve your family in any way, but rather, keeps everyone cooped up inside planted in front of screens, try eliminating them and seeing what life feels like without them. You may learn that you tend to spend more time as a family exploring the outdoors, sitting around the dinner table, or having meaningful conversations. As such, you’ll discover that your true values lie not in acquiring the latest and greatest consumer items, but in spending time with your family and friends.
#3: Resolve to Control Your Finances, Not to Let Your Finances Control You
Once you learn to live with less, you can cultivate a healthier mindset with your finances: You get to decide what matters and what to spend your money on, rather than succumbing to a societal view that more is better. Each time you make a new purchase, sort your items into categories according to “wants” and “needs.” In time, you’ll likely see that “needs” are actually quite few and far between. You will also likely see that as you pare down your unnecessary items and expenses, you can not only survive, but thrive, with less “wants.”
While it may feel daunting or foreign, learning to live like a minimalist can help you achieve financial freedom. Living with less invites us to spend less, which in turn increases the funds we have available for what truly matters – whether that’s saving for retirement, providing for our families, or simply building up savings so that we can live in financial peace.
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