6 minimalist tips to manage your money
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Struggling to make ends meet? Feel like your expenses keep growing faster than your savings do?
Check out this article for some tips and tricks on how to become a financial minimalist – reach those goals quicker, with less effort!
Saving money often comes as second nature to minimalists, who focus on investing in their needs and leaving the wants behind.
With that strategy can come a multitude of benefits: from building an emergency fund for rainy days, to saving up for big-ticket items like traveling or buying a home – whatever your reason may be!
If you’re looking for ways to better manage your finances according to this ideology then get ready because we’ve got some amazing tips about how minimalism is the ideal tool for doing just that.
Be careful of the lifestyle creep
According to Wikipedia:
Lifestyle creep, also known as lifestyle inflation, is a phenomenon that occurs when we spend more money on a higher standard of living, former luxuries become perceived necessities.
As I made more money, my habits changed and it seemed like anything was fair game when spending.
Unfortunately, this caused regret down the line as splurges on clothes, shoes and electronics added up quickly!
Appearances aside – one of my biggest guilty pleasures became collecting fragrances with way too many similar scents to even tell them apart–all said & done though at least now they’ll last a lifetime…to remind me how important financial management is before we start trying to upgrade our lives.
When it comes to upgrading, think twice about whether you really need (or even want) the newest model of your beloved smartphone.
After all, if what you’ve already got works like a charm why pile on more stuff?
Scale your possibilities
Even though housing, cars and entertainment take the lion’s share of our budgets, there are plenty of smart alternatives for having a good time without breaking the bank.
If you live in an urban environment don’t forget to check out all sortsa free or almost-free events – from movie festivals to art expositions plus your local library may even have books and movies which can be borrowed gratis!
When it comes to financing a home however make sure not succumb into taking on more debt than necessary.
Picture yourself living comfortably within means rather that dreaming about what could be if only…
Pay your car in cash
If you’re in the market for a car, consider an alternative to financing that won’t break your budget.
Instead of adding extra interest payments with each month’s bank statement, why not save some money by investing in a pre-owned auto?
It’s true – new cars start depreciating right off the lot so don’t throw all those dollars away!
Pick up something previously owned and make sure it still comes with warranties intact before signing on any dotted lines.
Save even in debt
It’s never too late to form a healthy financial habit!
Try prepping meals, saving leftovers and cutting out any subscriptions you’re no longer using.
Even small amounts of savings can add up quickly—it may not seem like much now but it’ll help get rid of that debt in no time.
Keep track of your home finances
If you’re looking to get a better handle on your finances, there are all kinds of solutions out there.
My personal system is pretty straightforward – I set up an Excel sheet for each month that lists my day-to-day expenses and payment methods, so I can easily track where my money’s going.
This helps me identify any unnecessary costs or areas where I could save more – plus it also always handily excludes fixed overhead bills like rent and utilities!
Alternatively if you prefer something less precise but easier to stick with, why not try budgeting?
Allocate specific amounts in advance towards essentials such as rent etc., then decide how much went into savings before setting aside the rest for discretionary spending.
With either method (or both combined!), managing your wealth has never been simpler!
Don’t value yourself through things
Despite what society and marketers have taught us to value, material possessions can never be the measure of a person’s worth.
The sneakers you wear or places you go define nothing about who YOU are – only your thoughts, actions and decisions really do that.
Don’t let anyone fool you into believing otherwise; if anything were taken away from today onwards remember: You are still amazing!
Learning to handle money involves more than just crunching numbers – it’s a balance between wisdom and emotions.
To find the right financial equilibrium, why not check out my publications on minimalist living?
And if you have any questions along your journey feel free to reach out – I’m always ready with answers!
Here are some other Minimalist Lifestyle posts you might find interesting.
A Minimalist is not a Cheapskate
6 Minimalist Tips to Save Money
10 Ways to Have Fun without spending Money
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