Using Minimalism to Grow Your Money
Today our guest poster will be Uzy from the blog Coming Om. Uzy is telling us all about using minimalism to grow our money. As some of you may remember, we are going to be doing a 30 Day Minimalist Decluttering Challenge and we are SUPER excited about it. If you want to join, or read this and decide you want some more information, check out our intro post by clicking HERE! Until then, enjoy the post by Uzy! 🙂
The benefits of a minimalist practice can be seen and felt in every area of our lives, particularly in how we manage our money. In fact, when done correctly, a minimalist money plan will result in more of your money and not less. Here are five steps that you can take to incorporate minimalist thinking into your daily financial decisions.
Commit to a ‘less is more’ life
In order to effectively apply minimalism to your financial decisions, you’ll first need to understand and embrace the concept. Living a minimalist lifestyle means committing to the idea that you only need those things that add value to your life, and everything else can fall to the wayside. It’s about prioritizing and getting the most out of the stuff that really matters.
It also means releasing any emotional attachments that you have to material possessions, and understanding that these possessions are there to serve a function and not to be a determinant of your worth. That means that you’ll no longer have the desire to accumulate more. When you desire less, you’ll spend less – which has a direct impact on your money. Once you fully embrace a minimalist lifestyle, you won’t need to do anything more to begin to see your money grow.
In addition to acquiring less, you’ll also feel a need to give what you currently have away. This will have a direct impact on your money, because the stuff you get rid of can bring in extra money into your household, whether through reselling them or gaining a tax benefit from donating them.
Related: DIY Jahn is hosting a Declutter Your Life, Reach Your Debt Free Goals (30 Day Minimalist Decluttering) Challenge! We will spend the month of April working to declutter our homes and declutter our minds to help us find peace and pay off debt. We would LOVE to have you join us for the simple challenges each week.
Have your goals in mind
Better yet, put them on paper. As you think about your money and how you want to use it, ask yourself what it’s all for. Where do you see yourself and your family in the next 6 months? 1 year? 5 years? More importantly, what will it take to get you there?
Your goal could be anything from a family trip that you’ve had on your mind for some time, or a new home, or an education fund for your children. Whatever it is, get clear on it. Once you’ve set one or more financial goals, write them down in plain sight so that they serve as a daily reminder of what is truly important to you. Remember that money is not the object, but a tool to get what you need.
Be honest with yourself
What do you really want and need? For many of us, what we spend our money on often isn’t what we actually want and need. Instead of resorting to purchasing more stuff, take a moment to understand the reasons underlying the purchase. Is it happiness? Acceptance? Self-worth? Tune into the present and use it as an opportunity to figure out what you’re truly hungry for – and then work on getting it.
Create boundaries in order to feel freedom
A large part of practicing a minimalist lifestyle is understanding that there is a limit to what we should have. When it comes to our money, a budget is where we exercise those limits and is actually the source to freedom from debt.
It also helps to keep us within our means, and gives us the ability to appreciate and enjoy what we already have. One place to exercise these limits is in your closet. The growing popularity of capsule wardrobes, for example, is for good reason. Stick to a set number of pieces each season and commit to not adding anything more to it. You’ll immediately see an impact on your financial life.
Put your knowledge to work
Here is where you get to put your minimalist practice to work. First, take a full inventory of everything that you spend money on in a given month. Then, decide what is unessential to your life, in that it doesn’t add function or happiness to your life. Next, decide where you can cut back in your life, in order to reduce your financial expenses. Here are some questions to ask yourself:
- What am I paying every month for that I don’t use? Look at your monthly subscriptions that are auto-renewing without you knowing.
- Where can I cut back and still get everything that I need? For me, this meant changing my bank to one that fewer features but zero fees.
- Where can I take advantage of less expensive alternatives? This could mean cutting cable and moving to online streaming, like Netflix, instead.
About the Author
Uzy Igweatu is the author of Coming Om, where she writes about her journey toward a more intentional life. You can find her at comingom.com
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