I haven’t been on the minimalist journey for very long, so I am learning something new everyday. I knew about the minimalist way of purging and downsizing, but what I didn’t realize that it should be applied to every area of your life not, just your possessions. I have 5 steps to help your financial life.
- Consumerism trap ~ Stay away from impulse buys, understanding if it is a want or need. When you find yourself with an urge to buy something put it on a 10 day list and don’t buy it until 10 days later. The urge to buy it will usually go away. Think hard about every purchase, is this really a necessity? Can I live without it? Try to live with just the basics, spend time with people and create experiences.
- Emergency fund ~ They only way to have stability is to stop living on the edge, stop the paycheck to paycheck cycle. If possible try to save $500 by putting $50 – $100 per paycheck in savings and gradually build to $1000. This will be hard, but evaluate your spending and see what you can cut out.
- Eliminate storage unit, sell the contents
- Cable TV
- Gourmet coffee
- Eating out, expensive entertainment
- Expensive electronics
- Use the library
- Downsize your car and/or home
- Magazine subscriptions
- Debt ~ Pay as much as you can on credit cards and stop using them.
- Cash only Debit cards ~ Cash is great because you always know how much you have. Try the envelope system for cash, put designated amounts in each envelope that is for groceries, gas, bills, to keep track of your spending.
- Don’t buy unless it is a need and you have the cash ~ I know this is common sense, but it is very hard to stick to.
Finances really complicate peoples lives, but that doesn’t have to be the rule for you, simplifying your financial life will prevent future money headaches.
Making of a Minimalist 