In the world of consumption we live in today, the thought of living by the mantra “less is more” is a far fetched idea. I mean, if you don’t own at least 3 more iPhones than your best friend then you’re a loser right? Well, let me tell you that it’s true that less can be more. For instance, less fights with your partner means more happiness in your relationship. Moreover, less fast food means more sexy glances from Becky at the gym. The same principle can be applied to your money and as such I want to share with you exactly how financial minimalism will make you wealthy!
What is financial minimalism?
So, first off, what is financial minimalism? While there is no official definition for this term, the word minimalism can be defined as a style of extreme simplicity and when taken in the financial sense it basically just means that your financial life revolves around what you need and cuts out what you don’t. For example, do you need to own a few shirts, yes. Do you need to own 50 designer shirts? Probably not.
Now, beyond cutting down the number of garments in your closet, what are some other ways that people employ financial minimalism in their lives? Good question. As I just mentioned, financial minimalism can be employed in the consumer goods you buy but it can also manifest in many other aspects of your daily financial life. In fact, whenever I talk about saving money, I discuss cutting down your big 3 expenses of housing, transportation and food and financial minimalism can be applied in these areas of your finances as well.
The Big 3
For example, when it comes to housing, do you really need that 2,500 square foot home for just you and your dog? I mean, last time I checked, a poodle didn’t need 3 bedrooms to itself. By identifying that a two bedroom apartment will do, you can easily save yourself hundreds of dollars a month while also still meeting all of your living needs.
Now, what about that fancy car of yours. Sure, it feels great to always have a brand new car in the driveway but is it necessary? After about the fifth drive in that car the new car smell will lose its flair but those massive monthly payments won’t cease to sting when the money leaves your account. In this instance…