Finances Through A Minimalist Lens

Minimalism: a style or technique that is characterized by extreme spareness and simplicity

Sometimes when we think of minimalism, we think of things like off the grid living. While there are some that do choose that way of life most of us who pursue a minimalist life are really looking to cut the clutter from our lives so that we can spend more time and energy on the things that align with our values and focus on the people we love. Many people find that their current way of thinking, their current way of life, and their current finances (very important) are holding them back. When people think of their finances, they often think that they need to make more money. But, what would you do if you discovered that you actually make enough money at your present job?  What would you do? Today, I dare you to reimagine your life through a minimalist lens.

Shifting from being consumer driven to value-driven.

            In this area, we really want to examine our spending habits. For example, do we really need to shop Prime days? Do we really need to shop on Black Friday? Do our spending habits reflect our values? For example, let’s say we want to work on our health. Do our spending habits reflect that? Things we would look out for are how much money we’re spending eating fast food versus how much money we spend at the grocery store. Speaking of the grocery store – what is dominating the receipts? Chips and candy or fruits, vegetables, eggs, etc.? Are we spending money on workout classes, gym memberships, 5Ks, running watches, home gym equipment, etc.? We really want to get real with ourselves here because this is going to show us if we are working in the best interest of ourselves or if we are creating our own customized barriers to success. When we zoom in, what are we going to find? Don’t be upset if you find you are not using your finances to support your values. This is a discovery phase. Once you know, you can do something about it.

Quality Over Quantity

           You may remember the trend of what “sparks joy.” This was coined by Marie Kondo, and it came from her book, “The Life-Changing Magic of Tidying Up.” I personally loved this book for myself, but the part of the book that I found most valuable was examining what sparks joy for myself. We can literally do this for everything. Before you buy that next top because it’s cute, try touching it first. Hold it. Does it feel nice in your hands? Against your skin? Because if it doesn’t spark joy, then that’s your pass to keep moving. This is a good time to deep dive into what you value in life, and focus on quality over quality when you can and where you can. Not only will this help you to save money, it will help you enjoy your purchases, and create healthy habits around what you choose to spend your money on.

Redefining Wealth

            My idea of living a rich life is having time freedom, financial freedom, and location freedom. If I can enjoy my life in a way that fills my cup then that is chef’s kiss for me. So what does your rich life look like to you? What do you value? What would your day to day look like? How would you care for your loved ones? Money is not the only thing that creates a rich life. A rich life often includes things that are intangible. So what does it mean to you? And are your spending habits drawing you closer to your rich life or pulling you away from it? Get clear on what this means to you and start shifting your finances accordingly.

Automation

            Whatever you can automate, automate. Set up an automatic transfer for the amount you want to save every month, even if it’s $5. Put your bills on auto pay so you don’t miss a payment. Automate your investments so every month you're adding to your portfolio. The less decisions you have to make around your finances, the easier it will be to achieve your goals. Previously we talked about how important systems are. Automation should be part of your financial system.

Reduce Debt

            Debt is often a killer in one’s finances. Remember my issue with hoarding paper? Part of my system was that I did not add any new paper to my pile, and chipped away at the existing pile of paper. This is the same for your debt. Part of your system might mean that you are not using credit cards (aka, you’re not adding to your debt), you are living within your means, and you are chipping away at the existing pile of debt you have hanging around. Once you start paying things off, you will feel yourself be able to breathe again, and hope will surge in like the knight in shining armor that it is. Did you miss that free 50-30-20 workbook I created for you? Get it here.

Sell Your Stuff

            As you’re working on cutting the clutter from your life, you will likely want to part with things. Some of those things may be worth selling. Have you considered that if you sold 10 things on craig’s list or fb marketplace for $5 each, you would make $50? Clearing your space, and making a few extra bucks? Sounds like a win-win to me. Now don’t go off and spend that money on ice cream – make it work for you! But, also, maybe an ice cream cone is an appropriate treat (says the ice cream queen herself - sorry, not sorry).

When all is said done, there are many ways to approach your finances. Getting your brain to work with you and not against you is going to help immensely in the long term. The fact of the matter is that we don’t need to be like anyone but ourselves. We have our own personal values, needs, and aspirations so stop letting your environment and the majority of people around you dictate your life.