Why Minimalism is a Good Habit for Your Finances

architecture-1087819_640Minimalism has become a very popular concept in the last few years. For many, minimalism is a way to de-clutter and become a more organized person. For others, it is a jump-start to a more relaxing and stress-free life in a world of constant stimulation. The basic “rule” to minimalism is to rid your life of anything you absolutely don’t need or don’t enjoy; everything you have in your life has to have a purpose. If you are trying to get your finances in order, minimalism can help you get on the right track. Here’s how:

You’ll Save Big

By applying minimalism to your finances, you’ll stop making unnecessary purchases.  Whether that means giving up your daily latte, your clothing expenses, or your three-times per week take-out, all expenses begin to add up. You’d be surprised how much you’ll save by only allowing yourself the bare minimum. I’m not even saying you necessarily give up your Internet or basic cable if you really refuse, I’m merely suggesting you eliminate all purchases that you absolutely don’t need or don’t value. You’ll save money in the long run and de-clutter your house by not buying an array of unnecessary items.

You’ll Organize Your Finances

A large purpose of minimalism is organization. If you apply minimalist principles to your life you’ll find that your financial life is much more organized as well. One of the first steps to simplifying your finances is riding your life of all that extraneous paperwork. Get rid of any statement or bill that you no longer need, or consider going paperless; you’ll spend a lot less time searching through your paperwork. Furthermore, you can reduce to one credit card and bank. You may think you need multiple cards or accounts, but if you’re no longer buying a surplus, you won’t need those extra accounts. You’ll be glad you reduced your accounts, as you won’t have as much paperwork, bills, or debts to keep track of.

You’ll Earn Money

One of the big advantages to minimalism is that it requires you to get rid of all that extra stuff you don’t use. You’ll de-clutter your home by replacing large and unnecessary pieces with smaller and more functional ones. Of course, financially, this is beneficial because more likely than not you’ll be able to sell the things you don’t need, earning you some quick cash to put toward your financial priorities. Furthermore, many people who live the minimalist lifestyle downsize their home. This will allow you to have a much lower house payment as well, giving you a little extra cushion with your money each month.

Minimalism isn’t a lifestyle for everyone and it definitely isn’t always an easy one. However, if you can get past the fact that you’ll have to give up a little extra, you might find yourself happier to be living a much simpler life; a more de-cluttered and organized life. What’s more, you’ll find that applying minimalist principles to your home will give your finances a wonderful boost in the right direction as well.

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