Two years ago I vowed to be better with money and learn about personal finance. Personal finance is the useful stuff that you don’t get taught at school, like how to budget, save and invest. I decided that I’d had enough of earning money and not really knowing how I spent it, mindlessly shopping and generally being a bit useless! Around the same time I discovered The Minimalists and Marie Kondo and I began decluttering. I wanted to share how minimalism can improve your finances and who knows, perhaps this will inspire you to assess how you’re spending your money in 2020…
Money Mindset Shift
The first way minimalism will improve your finances is with your mindset. When it comes to your money and how you spend it, minimalism will give you clarity. Which, will in turn help you to identify your priorities and be more conscious of where your money flows, resulting in you achieving your financial goals quicker.
Priorities Become Clear
With minimalism, you will quickly learn the difference between a want and a need. Everyone’s minimalism and financial journey is different as we are all starting from different points. What is a priority to me, might seem trivial to others. So don’t compare yourself to anyone else, avoid being a harsh critic and be supportive not judgemental of others. As you start your journey you will begin to declutter, choosing what is important and which things you truly love. Likewise, when decluttering your finances you will be able to identify which things you really, truly want to spend your money on and what brings you joy.
Buy Fewer Things
When you buy fewer things and you are intentional with the purchases you make, you will find that you are less caught up in constantly browsing the internet for the latest things. Buying fewer things will help you to save money and buy better things when you do decide that you need something.
Achieve Your Financial Goals
Once you’ve shifted your mindset to living and spending with intention, identified your priorities, you will have a much clearer overview of the financial goals. Your financial goals might be saving for a deposit on a house or building up your emergency fund. Having a minimalist mindset, buying less and being mindful of where your money goes, will help you to achieve your financial goals much quicker. If you’re anything like I was and spend money without fully thinking about it, then adopting a minimalist mindset will help you. As soon as you stop and begin to think about where your money is actually being spent, you will soon start to realise your personal pitfalls, maybe that’s spending sprees on ASOS or at HomeSense. Recognising our own pitfalls is the best place to begin to make change and create clear, achievable financial goals.
Sell The Clutter
Two years ago I had a wardrobe I couldn’t open, basically a glorified storage unit for clothes I would never even wear. When I began to declutter it was a revelation! I’m not done decluttering and we still have a long way to go, but progress is being made. Decluttering slowly means that you can sell your unwanted and unused items as you go. Selling your clutter can be a fruitful side hustle.
Simplify Your Budget
My former self had no idea what a budget was! When you start on your minimalist journey, you’ll soon realise how few things you actually need. Once you’ve shifted your mindset, simplified your spending and prioritise the things that you are spending on, sorting out your budget will be much simpler. You will have fewer outgoings, less rows on your budget spreadsheet and way less to keep on top of. Since your budget is basically a road map for your financial situation, you’ll have a clear path of where your money is going and be able to move in the direction of your financial goals easier and quicker!
- Your mindset will totally change when it comes to spending money
- You’ll be able to identify your priorities when it comes to spending
- You will want to buy fewer things
- You will achieve your financial goals more quickly
- Selling your clutter can be a profitable side hustle
- Being more intentional with money will mean your budget is more effective and easier to manage
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