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How a Minimalist Lifestyle Improves Your Finances

Millennial Magazine - minimalist lifestyle

Hailed as the key to living a life free of clutter, financial burdens, and emotional overwhelm, minimalism is undoubtedly the most spoken-about interior design trend of our generation. 

But the concept of “less is more” has been around for hundreds of years, and it is much more than a decor fad – it is a mindset that can truly revolutionize your life. 

So, how does reducing your belongings improve your finances? Here’s all you need to know about the financial benefits of embracing a minimalist lifestyle – and how this movement can help you live a debt-free life!

What Is Minimalism?

At its core, minimalism is the concept that less is more. When you first embrace this life philosophy, you’ll notice that the first changes will show in your home – the environment where you spend most of your time. But your home’s decor is not the only aspect that will be positively impacted by these changes.

Being so elastic, the concept behind minimalism can be successfully applied to art, fashion, music, literature, finance, and interior design, leading to the creation of masterpieces such as Die Fahne Hoch! by Frank Stella and In C by Terry Riley.

When applied to everyday life, minimalism is all about reducing clutter, focusing on the items that serve a purpose, and simplifying complex situations. In turn, this mindset has been seen to reduce stress, relieve the symptoms of depression, and help people feel more in control of their life. 

3 Ways in Which a Minimalist Lifestyle Helps Your Finances

According to a recent YouGov survey, over 50% of Americans often feel worried and stressed about things out of their control, and believe that their life is extremely complicated. 

For 30% of them, “finances” is the number one area of their lives they wish to simplify. But how can a simple concept like “less is more” be the first step towards financial stability and long-term wealth? Start here!

It Encourages You To Invest in Fewer but Higher-Quality Items

One of the cardinal principles of minimalism is to reduce the number of belongings, focusing on items that serve a purpose. When creating a minimalist home, you’ll find yourself spending less on everyday items, as well as on furniture and decor. 

In turn, this can highlight areas of your budget where you were overspending, and help you boost your savings. 

What’s even more important is that minimalism allows you to prioritize your expenses, focusing on experiences rather than things and choosing fewer but higher-quality items – which will last longer and won’t call for costly replacements any time soon!

It Limits Your Maintenance, Storage, and Repair Expenses

Owning fewer items means spending less on maintaining and repairing your belongings. Whether it’s furniture, vehicles, appliances, or clothes, limiting your belongings can help you streamline your finances and avoid regular and expensive bills. 

But even more importantly, minimalism can help you reduce the number of items that need storage, which can lead to significant savings! 

Firstly, repurposing the storage areas in your home means that you can increase your living space. Or, if the extra space is unused, you could consider downsizing, thus reducing your rent or mortgage. 

And, if you are in the 10% of Americans who are also renting a storage unit, cutting down on belongings that need storage can help you save between $90 and $290 a month!

It Helps You Simplify Your Finances and Live Debt-Free

As we have seen, most Americans think of their finances as the most complicated aspect of their lives. When you live a minimalist life, your number one priority will be to simplify complex situations. 

In turn, embracing this mentality will:

  • Help you be more mindful with your spendings
  • Guide you in limiting unnecessary expenses 
  • Assist you in setting a budget and clear financial goals
  • Show what purchases bring value to your life
  • Highlight your positive and negative financial habits

A simpler financial life is a debt-free one. Minimalism can help you make more mindful choices about how to handle your loans and encourage you to find providers like SoFi, which can help you better manage existing debt (such as student loans).

In turn, not having to deal with debt can help you make freer and happier choices regarding your career, investments, and finances. 

Working Towards Your Financial Goals? Start With Minimalism

Unfortunately, it is impossible to become a minimalist overnight. Embracing this lifestyle can take months or years – and continuous commitment! 

However, applying a minimalist mindset to your finances today can make a difference in your future financial stability and wealth. So, the best time to start simplifying your financial life is now!

What do you think?

Written by Marni E. Goldberg

Marni E. Goldberg is a journalist covering the financial market and graduate of Wharton School of Business. She loves cooking, travelling in her spare time, and spending quality time with her family.

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