Minimalism is not merely a buzzword or an interior decorating trend. It’s a way of living! Simplifying your life by adopting a minimalist lifestyle results in significant savings, simplifies many of your affairs, and leaves you with more free time.
Of course, unlike just about any other lifestyle, minimalism is not for everyone. Before you take the plunge, it’s worth learning more about what minimalism is, all the ways it saves you money, and how to adopt minimalist ideas in your own life.
That’s what we’re talking about!
What is minimalism?
If I were to summarize minimalism in a few words, it would be “living with less.” Instead of focusing on physical possessions, you would get rid of extraneous things and focus on more meaningful pursuits.
Minimalism is what you get when you’ve stripped away life to its bare essentials, only keeping those things that are truly important to you or bring you happiness.
In this context, you can think about minimalism as a simple style of living. Minimalism is also an artwork movement. Additionally, it is also a design and architectural trend, but we are primarily discussing the lifestyle definition here.
It’s the fourth definition on Dictionary.com: “a lifestyle involving a reduction or simplification of one’s material possessions that frees one to lead an existence that is more intentional, purposeful, spiritual, etc.”
There are several obvious ways to save money by utilizing minimalism, as well as some less obvious ones, too. Let’s move on to the list.
8 ways minimalism saves money
While yes, minimalism saves money, it’s not just about the cash.
Living less will improve your life in many other ways, too! Minimalism frees up your time, reduces stress, affords you time for experiences over things, and many more benefits.
The many ways in which minimalism saves you money are only an added bonus to the lifestyle. Here are eight examples.
1. Reduces unnecessary spending
Let’s not overlook the obvious benefit of shopping every day! Minimalists typically do not go shopping on weekends. In a minimalist house, you don’t get to see every shelf and counter cluttered with utensils and appliances.
Instead of buying a bunch of clothing and shoes, minimalists tend to build a capsule wardrobe. When you adopt a lifestyle of minimalism, you will not be forced to wait in long lines to get your hands on the latest smartphone each year.
The core of minimalism is buying only (or mostly) what you need, not making impulse purchases. Before you purchase something new, sleep on it.
How often do you actually need it? Where would you put it so it is not just extra clutter? Ask yourself if you need it or if you’re simply having “shiny object syndrome.” And always remember: every dollar you resist means you keep that money in your wallet!
2. Encourages smaller living
Minimalism isn’t just about items within your home–it can also apply to the home itself! If you’re accustomed to living on less, you might not need a large house.
Since housing costs are one of our largest expenses (whether rent or mortgage), minimalism saves money in a big way. Living with less space at home or apartment may be a game changer for your personal finances.
It can also make it possible for you to buy your first home and get into the property ladder.
3. Changes your car choices
Cars can be another large expense that affect you either positively or negatively. If you enjoy driving the latest models and are always buying new ones, a minimalist mindset can change the way you think about your vehicles.
As the value of cars depreciates over time, the more you spend on one, the more money you lose. In addition, expensive cars often have high maintenance expenses and repairs.
When engaging in minimalism, it can help to reframe your thinking about the distinctions between vehicles and better transportation options. Instead of thinking of cars as a source of luxury or status, think of them as a way to get from place to place safely.
Instead of taking out an expensive loan for a new vehicle, consider buying a used car. Prioritize necessities over luxury features. Here are tips on saving money for a car!
4. Minimizes debt & interest payments
Because minimalists do not own a lot of stuff, they do not rack up many credit debts, expensive car payments, and so forth.
That’s great news for your bank account because debt tends to create more of itself. As interest rates raise, you might find yourself struggling to pay off the original debt.
If you’re already in debt, you can begin your minimalism journey by getting out of consumer debt. It accelerates your progress significantly if you’re already dedicated to staying away from needless expenses!
When you are trying to take out a new loan (school loan, auto loan, mortgage, etc.), be sure to shop around for the lowest rates.
5. Helps you focus on quality over quantity
You might think minimalism saves you money by leaving you with few possessions. But that’s not true. Because minimalists are highly discerning about what they buy, it usually translates into investing in higher quality items.
By doing this, you will not have to buy and re-purchase the same thing over and over again when they wear out. You will save time and money by purchasing a good once rather than purchasing a poor one multiple times.
It also means you can focus on enjoying what you own and getting more value out of them. Instead of filling your space with useless clutter, be selective in acquiring things you find useful and meaningful.
6. Decreases your insurance quotes
Minimalism won’t reduce your health insurance premiums, but it can save you on other types of insurance. For example, the type of vehicle you drive affects the insurance rates you pay.
A minimalist lifestyle means that you will not be purchasing and insuring expensive “toys” such as boats and motorcycles.
Additionally, you may save on homeowner’s insurance premiums or personal property coverage if you do not own a lot of valuables.
7. Lowers upkeep & repair bills
Having a lot of stuff is a lot of work! When you have a larger house, fancier cars, more appliances, and high-tech equipment, it’s all stuff that you will have to maintain, repair, or even replace.
Living with less requires less effort, and that saves your time.
8. Allows you to easily make life changes
Want to move to a better-paying job or to a lower-cost-of-living area? Minimalism cuts through the obstacles that prevent people from making great moves.
You won’t have to rent five U-Hauls or sell countless items at a discount when you decamp from your house. If you want to travel across country or even to a different country, minimalism means less stuff tying you down.
Freedom + money is a great combination, and that is exactly what a minimalist lifestyle offers. Go seek those better financial opportunities!
Is minimalism right for you?
If you’re interested in minimalism, you don’t have to discard all of your possessions on your first full day. Start small by experimenting on a smaller scale. The 30-day minimalism challenge is a great way to start.
You’ll gain an insight into the benefits of minimalism, get in some decluttering projects, and discover how being minimalistic can improve your mental health.
Minimalism saves you money, time and hassle, and can even improve your life. Read these exceptional books on minimalism and learn how to be a monetary minimalist to fully grasp the idea of minimalism firsthand.
