It seems that more people are choosing to live with less. While some are doing so to simplify their lives or save money, others choose this lifestyle to reduce stress and their environmental impact. However, the most apparent change for our family has been the financial benefits of a minimalist lifestyle.
What Is the Minimalist Lifestyle?
We live in a culture that idolizes consumerism and tells us that having more is always better. However, those who live a minimalistic lifestyle choose to have fewer material possessions and focus on what they need to survive. Based on this philosophy, if it doesn’t serve a purpose in your life, then it’s another distraction you can eliminate. By doing so, you can simplify your life by reducing stress and expenses.
Although it may seem impossible for some, learning to let go of attachments to physical things can be extremely liberating. Those who have successfully adapted to living with less will usually tell you that they are much happier and more satisfied with their lives.
In addition to all the personal benefits it offers, there are also many financial benefits of a minimalist lifestyle.
What Are the Financial Benefits of a Minimalist Lifestyle?
1. It teaches you to live below your means.
This approach requires you to take a step back and honestly assess your lifestyle and financial situation. In addition to the things you already own, it also forces you to examine your spending habits and determine what you really need. During this process, many people realize that their habits are not compatible with the lifestyle they want and learn to live below their means.
As you simplify your life, it becomes easy to identify areas where you can reduce spending since you are better able to distinguish wants vs. needs. It will also teach you better money management skills as you adopt habits that are more compatible with your long-term financial goals.
2. You become more mindful of your spending.
Another financial benefit of the minimalist lifestyle is that you become more intentional with what you choose to keep. Not only does this help you declutter, but you also take more time to think about what you are buying.
This can help curb impulse buying since you determine if the item is really necessary. And, it also puts the focus on having quality items over quantity. Both of these factors will have a positive impact as you become more mindful of your spending.
3. It allows you to save more money.
As a result of the previous point, you will also save more money. Since you won’t spend it on unnecessary things, it will create more money in your monthly budget. By cutting out the things you don’t need for daily life, you will also spend less time and money on cleaning, organizing, and storing all your possessions.
4. It makes it possible to pay off debt faster.
Since you are saving more money, you will also have more resources available to put toward other financial goals, such as paying down your debt. You could allocate the savings each month to help you lower the principal on your mortgage, car loans, credit cards, or other debts. By getting out of the debt cycle, you remove one more stressor from your life and use your income to plan for the future.
5. You could increase the value of your home.
This lifestyle could also bring more financial benefits if you are trying to sell your home. Clear spaces are more attractive and pleasing to prospective buyers. So, adopting minimalism is a great way to increase the value. If it induces a sense of calm and openness when you enter, it will help you sell your home more quickly and possibly get a better offer.
6. The minimalist approach streamlines your finances.
Another advantage is that this approach will streamline your finances. When you own fewer things, you don’t have to worry about paying for and maintaining your possessions. This could mean fewer monthly payments, lower premiums, and fewer repair costs as well. When you have fewer financial obligations, it becomes much easier to manage your finances since you have less to stress over.
7. You have more time and money to focus on your priorities.
It’s important to remember that minimalism isn’t about deprivation. Rather, it’s about detaching from material possessions and making deliberate choices about what you want in your life.
It can be hard to focus when you own too many things, and you can easily lose touch with what you value. By owning fewer things, it is much easier to determine what is important and clarify your priorities. With fewer distractions, you gain more freedom to spend money on the people, things, or experiences that matter most to you.
8. It makes you more productive.
Another thing people notice is that minimalism can make you more productive. First off, it’s much easier to concentrate and be productive when you are surrounded by clutter or dealing with financial obligations. But when you spend less time thinking about your finances or possessions, you can focus on other pursuits and activities that get you closer to your goals.
9. You learn to appreciate what you already have.
No matter how much you have, it’s easy to take things for granted. Adopting a minimalistic lifestyle helps you understand that things won’t make you happy. You must find fulfillment elsewhere and learn to appreciate what you already have.
As my family has gone through this process, we have learned to use our resources more creatively and to appreciate them in new ways. Plus, you have more time to enjoy the things you truly cherish.
10. You stop comparing yourself to others.
When you change your relationship with money and possessions, you also change the way you measure success. If your value doesn’t depend on the things you own, there is no longer a need to compete with others or hold yourself to their expectations. There will always be people who have more, but minimalism allows you to stop comparing since you live by a different set of standards.
The whole purpose of minimalism is to help you detach from your possessions and determine what is truly important in your life. Without the added stress and expense, you gain more freedom to use your time and resources for what matters most.
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Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.
