Minimalists are people who like to have the bare minimum in their lives. They like an easy life that focuses on what they love. They don’t feel like it’s a sacrifice, they hate clutter, waste of time, upkeep and maintenance of cars, houses, boats, motorcycles, etc.
They like living spaces that are easy to keep clean and organized. They have simple pleasures which are usually experiences with friends, family, and intellectual pursuits. They are naturally good at personal spending, as their needs and wants are few.
Whether they make a good living pursuing their passion or simply getting a job they love, their personal finances tend to take care of themselves through smart lifestyle choices.
What is minimalist finance?
A minimalist approach to personal finance is about spending money consciously and focusing on the things that matter most and not wasting it by buying excessive things that are unnecessary and bring no joy. It’s not about being cheap, it’s about valuing your money and the time spent making it and only spending on things that are worth the price and your time. A financial minimalist will only own things that they use regularly, that make their life easier and happy.
Most minimalists don’t like excessive bills and debt. They like to keep their finances as simple as possible with automatic payments debited from their accounts and automatic deposits made to their savings and investment accounts. They like their finances like their life, minimal and practical. They don’t like a cluttered bank account or uncancelled subscriptions, they keep their bank accounts clean, simple, optimized and organized. They tend to use simple investment programs and forget about it that they don’t have to think about, they just let the strategy take consistent action in deposits and purchases.
A financial minimalist does not feel the need to reward themselves with material goods and purchases. They prefer to reward themselves with an easy and simple life. Freedom is one of their main values. They feel no urge, need or jealousy to follow other people’s way of life. They focus on their own lives and their personal finances reflect their values. They focus on needs, not wants. They buy things that make their life easier and not more difficult, stressed and cluttered.
How do you handle money like a minimalist?
The key to personal finance is simply to spend less than you earn. The obstacle to this is usually self-control. A minimalist naturally has self-control because they want their life to be simple, easy, and uncluttered. Minimalist values are the opposite of the spendthrift and hyperconsumerist culture of the United States. It is thus much easier not to go into debt, to spend less money, to save and to invest.
A personal finance minimalist applies the principles of minimalism to their money by having only the debt and bills they need. A finance minimalist will own the fewest items he needs and wants. They usually own a house or apartment that is only the size they and their family need. They have no unused rooms or spaces, they maximize their space in terms of size and utility.
They focus on their needs and priorities in order to spend less money, save and invest more of their income, and be careful with their purchases and savings.
A personal finance minimalist wants to buy and own things that bring them daily utility and joy. They dislike clutter and unused items taking up space in their home.
Minimalist financial advice
- Know your values and prioritize your spending to align with the things you find most important.
- Have a written budget or the self-control to live within your means.
- Pay off current debt and avoid future debt.
- Only spend money on things that bring you value equal to the cost.
- Focus on true utility and buy fewer things.
- Buy things that make your life easier.
- Get rid of things you don’t use every day or every week.
Can minimalism lead to financial freedom?
Minimalists prefer targeted spending to mainstream consumerism. They tend to enjoy the simple things in life and also don’t want bills and debts to trap them in a job they don’t like.
Minimalists are not materialistic, they tend to appreciate more intellectual things. Many minimalists are quite happy to walk to a nearby bookstore on a rainy Sunday afternoon and browse with a hot cup of tea. While others may think happiness comes with a week-long Caribbean cruise, that sort of thing rarely sits well with the minimalist. Minimalists thrive on creating a life and routine that they enjoy so much they don’t need a vacation.
The minimalist is not sensitive to the lifestyle experienced by many consumers. They don’t want to buy a bigger house, rent a nicer apartment, or buy a brand new car if they get a raise or a promotion. Contentment with what they have is their biggest behavioral driver. They also enjoy doing what they love in life and dislike complex corporate careers. They don’t get trapped into jobs they hate because they have the ability to meet their minimum financial needs with almost any job they want.
Their lack of debt, bills, and good investing habits tend to create a level of financial freedom to choose the job they want or start a business they love. They usually have great flexibility in their personal finances because their needs are few and their energy to pursue their passions is high.
Having no debt and few assets opens up many possibilities and opportunities that few have once tied to big houses, car payments, and monthly bills. Minimalists have a simple lifestyle and can travel light if they need to or want to.
Minimalists have more freedom of action because they are not trapped in a lot of debt and have less assets to manage and manage on a daily basis. The minimalist lifestyle naturally and automatically solves many of the financial problems that the typical American faces. The natural result of a minimalist lifestyle will be financial freedom on some level.
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