In my post Will minimalism help you financially? Really? I talked about two types of minimalism.
- Minimalism as an aspirational lifestyle that promotes having perfect items and an orderly home.
- Minimalism meaning intentionally spending and having less, leading a more simple life and or applying frugal living concepts.
One helps you financially and the other doesn’t. If you can’t guess which one, check out my post: here.
Today, I’m looking at how the second type of minimalism, which I’m calling intentional minimalism, CAN help you financially.
1. Simplify your possessions
Minimalism encourages you to get rid of excess possessions, keeping only the things that are of value to you. Or that you will use, or of course that will “spark you joy”, as Marie Kondo says.
This decluttering process provides the opportunity for you to sell your clutter, turning it back into the money that it once was before you bought it. That cold hard cash back in your pocket is definitely a financial benefit when it comes to applying minimalism to your life.
2. Buy less stuff
Minimalists say you should then ensure you buy less stuff, so you don’t just fill your life back up with clutter. The financial benefit of buying less stuff is pretty obvious. 🙂
3. Downsize your home
Now that the stuff has been taken care of, do you really need all that space? The Netflix documentary The Minimalists highlights that most people don’t actually use all of the space in their large homes. This is shown through experiments tracking where people actually go in their homes over time with heat mapping. Minimalists promote downsizing to a smaller home (maybe even a tiny home) where you won’t be using up unnecessary space storing stuff you no longer have, or having space in your house that you just never use.
Less living space means less rent, or lower mortgage repayments. A potentially significant financial benefit!
4. Simplify your finances
Part of being a minimalist is simplifying wherever possible, and why not carry that over into the financial sphere of your life. Simplify your budget: what subscription services do you no longer need? Do you really need two cars in your household? Track your spending and identify where you can cut back to minimise your budget.
You can also simplify your finances by focusing on repaying debt, consolidating retirement funds (where advantageous to you), refinancing loans and mortgages for a lower rate and so on.
Has minimalism helped you financially? Leave a comment below to let me know.
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