Practice Minimalism To Improve Your Financial Health And Quality Of Life

This is a guest post from a finance writer who goes by the name Good Nelly (we have no financial relationship). You may have seen her work in various other blogs and websites. A couple of months ago, she reached out to me with the idea of contributing an article about minimalism and financial health. I immediately lit up. Minimalism and finance are some of my favorite subjects to talk and write about. So, of course I said yes.

To connect with Good Nelly, you can follow her on Twitter.

And if you’re interested in contributing a guest post to my site, please contact me here. I enjoy taking guest posts because it’s interesting to see another person’s perspective and point of view. Plus, it allows me to showcase other people’s hard work :).

Without further ado, please enjoy today’s guest post.

---

Practice Minimalism To Improve Your Financial Health And Quality Of Life

Let me start the article with a simple example.

Open your cupboard and see how many pieces of clothing you haven’t worn for the past 1 or 2 years? Be true to yourself. Quite a few, isn’t it? That means you don’t really value them much. It also means that you didn’t think well while buying them.

This is where minimalism comes into play. It means getting rid of the things that you don’t value and spending on items that you truly value. Along with physical objects, minimalism also focuses on getting rid of distractions from your life. It helps to focus on more valuable things. In turn, it helps to improve your financial health.

Let’s see how minimalism can help improve finances.

You can manage in less space

When you practice minimalism, you don’t need a big space to store items. Therefore, you can save on rent or mortgage as you don’t need a bigger house. If you’re living in a big house, you can sell it and move to a smaller space. In turn, you’ll save a significant amount.

You can prioritize the items you’ll purchase

Practicing minimalism helps you to stay focused on the things you need to purchase. Remaining focused also helps you to set the spending priorities that ultimately help you in handling your finances efficiently.

You can distinguish your needs from wants

It can be said that ‘needs’ improve your quality of life. The money you spend now can help to save later. For example, if you purchase quality food, you’ll stay healthy and save on medical costs. Whereas, ‘wants’ give you momentary pleasure but may compel you to experience debt problems.

You sell items you no longer need

When you’re starting minimalism, you’ll sell items you no longer need. In the course of doing so, you get a good amount that you can use to consolidate your unsecured debt and pay it off.

You can get rid of your debts

In continuation of the previous point, I would like to say that embracing minimalism helps to get out of debt and stay debt-free. When you become debt-free, you have the freedom to live life on your own terms. You can even leave your present job and choose the one that gives you more job satisfaction.

So, how can you practice minimalism? Let’s check out.

Give yourself a 24-hour purchase time

I know how hard it is to resist yourself when you suddenly like a thing and want to possess it.

If you’ve decided to practice minimalism, then next time you face this, give yourself at least 24-hour time before purchasing it. The costlier the item, the greater the time you need to give yourself. Say at least 2-3 days if it’s a big-ticket item.

During this period, at first, check the reviews online. Then if you’re satisfied, calculate how many hours of work is needed to earn the money to buy that item. Ask yourself, “Is it worth it?” Then, check the items already at your home to find out if it’s somewhat similar or can play a similar role.

Still, if you want to purchase the item, again ask yourself, “Do I really need it?”. If your answer is yes, then think practically whether or not you can afford it. Finally, ask yourself how will you feel after you buy this? Are you sure you won’t feel bad after making the purchase?

This trick can help you a lot to purchase fewer items and accept the minimalist lifestyle.

Give importance to an emergency fund

Make it a priority to contribute to your emergency fund every month. If you haven’t done it before, then start with small contributions, say about $500 a month. Slowly, increase the amount and try to have a fund that is enough to meet your necessities for about 5-6 months without a paycheck.

Make sure you use this fund only for emergencies like bearing a medical cost or for a sudden car repair. You shouldn’t use this fund for any nonemergency purposes.

And, when you use the fund, make sure you replenish it as soon as possible.

Modify your budget if required

Yes, it’s the most important thing, even when you’re embracing minimalism. Almost everyone knows the importance of a budget even if they don’t plan one.

But, I want to extend the concept a bit further, especially when you’re practicing minimalism. Even if you have a budget, review and modify it from time to time. It will help you to stay on the right track of managing your finances.

Discard items you don’t need

Have you ever checked in your home how many duplicate items you have? Sometimes, we even have duplicate electronic items. It is an absolute no-no in a minimalist lifestyle. There are high chances you don’t use both the items.

Often we keep them because we think we might have to use them. But, rarely we do so. So, it’s better to get rid of these items. You can sell or donate them.

Cook at home and simplify your diet

Make a meal plan during the weekend and buy only the things you would need. Doing so, you’ll be able to reduce clutter, consume what you buy, and eat healthy food. Simplify your diet to include whole foods instead of consuming processed food. It is a much healthier alternative.

Certain things you need to keep in mind while practicing minimalism.

• You can continue using credit cards but make sure to repay the outstanding balance every month.
• You can’t avoid debts altogether but you need to manage it properly.
• Think ‘minimalism’ as a mode to achieve your long-term financial goals.
• Minimalism along with good budgeting strategies help you have a good financial future.
• Don’t be a cheapskate while practicing minimalism.

I would like to conclude the article by saying that we can apply minimalism to declutter our digital life too. Cut back on social media and it’s not mandatory to go through every news feed your friends are posting. I am not telling you to stop it; just limit your time.

It will help you to practice minimalism mentally and improve your quality of life.

Author’s Bio: Good Nelly is a financial writer who lives in Milwaukee, Wisconsin. She has started her financial journey long back. Good Nelly has been associated with Debt Consolidation Care for a long time. Through her writings, she has helped people overcome their debt problems and has solved personal finance related queries. She has also written for some other websites and blogs. You can follow her Twitter profile.