How Simplifying Can Help You Improve Your Personal Finances
Let’s focus on the ways that minimalism can help to give you more money in your pocket, with less stress and worry over financial matters. Even if you decide to invest more money into fewer quality items and experiences that bring you joy, you’re still spending more wisely and will likely find more fulfillment in such choices.
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Cutting back and buying less will definitely save you a bundle over time. Keep reading for an in-depth view of how simplifying can help you improve your personal finances.
You’ll See What Matters Most
When you approach your finances through a minimalist lens, you’ll be forced to examine what really matters to you. To begin the process of identifying your priorities and values, make a list. Ask yourself what kinds of things and experiences are most valuable to you. Chances are good that material goods won’t top your list.
Next, it’s time to examine whether your current spending habits align with what you say you value most. If you value experiences such as trying new things and going on adventures but you’re spending your money on clothes you end up not wearing, you probably don’t feel very fulfilled about those purchases. That’s okay. When you’ve done this exercise, you’ll have a better idea of some ways you can make a change.
You’ll Become Less Dependent on Possessions
Many of us rely on buying things as a way to prove we’re doing well, maintain appearances, make us feel better, or for a number of other psychological motivations. Retail therapy is a dangerous crutch. It can lead to financial disaster and even ruin relationships. Generally, at the very least, it doesn’t make you happy for long.
Genuine, long-lasting contentment comes from making financial choices that are meaningful. Once you’re able to see what matters most to you and start making fewer impulse buys, you may notice you’re less dependent on mindless shopping. This is a liberating feeling.
You’ll Save Money
Once you curb your shopping habit, you’ll save money. You may decide to invest that money in something that is more meaningful to you, such as traveling or going back to school, but at least you’ll have more money to do the things you weren’t able to before.
No longer will your past mindless spending cause you to feel deprived of the things that bring you joy. You’ll have more money on-hand for purchases that matter.
Stop Impulse Purchases in Their Tracks by Delaying It
One incredibly difficult habit to break for some is retail therapy. However, when you’re just starting out on the minimalist path, it’s imperative that you focus on breaking free of impulse buying and the temptation to drown your sorrows in shopping. Doing so will be one of the greatest gifts you can give yourself in this lifestyle.
You’ll spend less money, waste fewer hours, and save precious space when you’re able to become more intentional about your shopping. While it can be tough, the following tips can help you to stop impulse purchases in their tracks.
Think of How Much Work an Item Costs
A trick that can cast some perspective on each purchase you make is to tally up how many hours of work are required for you to buy that thing. Your time on the job requires effort and skill. You don’t want to trade that time and work for something of little value in the long run.
Instead, consider each potential purchase as time worked. When you realize that trendy dress is worth five hours of your hard work, it may not be worth the investment at all. Consider the joy each item will bring you, how much use you’ll get out of it, and whether you’ll look back fondly on the purchase six months from now. Then proceed.
Avoid Retail Therapy
Try to resist the temptation to shop as therapy if that’s historically been an issue for you. Consider your feelings before heading out to the stores. If you think a purchase will relieve stress, sadness, anger, or any other emotion, try to postpone a shopping trip.
Do something else you enjoy that doesn’t cost money until you’re better able to process your feelings. This goes for online retail sites, too. Walk away from the computer if you need to.
Keep Your Goals in Mind
Mindless spending and impulse buys can really add up. It’s easy to spend a significant amount of money on things you don’t truly enjoy all that much or ones that get little use in the end. When you feel the urge to buy something impulsively, take a moment to think of your actual spending goals. Are there things you would like to save for, like a vacation or a down payment?
Put the money you might have spent frivolously in your wish fund instead. You could always decide to buy the thing at a later date if you decide you really want it.
Stick to Your List
Make a list when going shopping and stick to it. This will make it more likely you’ll purchase only when you intended to pick up. You’ll be better prepared to avoid impulse buys. If you see an item you’d like to have, make a note in your phone or digital planner to reconsider it at a later date, say two weeks. If the item still seems worthwhile, you can buy it, feeling confident you made the purchase mindfully.
These are merely a few ways you can stop impulse purchases in their tracks. They key is to find a way to delay the buy until either the urge passes or until you determine the purchase is a worthwhile one. You’ll be more satisfied in the long run, and you’ll keep your clutter to a minimum.
Once you learn to align your spending with your values, you’ll feel much more content and far less stressed. Hopefully, you now have motivation to begin to craft your own minimalist spending plan.