Key Takeaways
  • Minimalism is a new way of living that can save you tons of money in the process. 
  • As a minimalist, you can save money by not shopping for quantity but quality. 
  • The minimalist lifestyle can bring you more happiness as you only spend (and focus your energy) on what matters the most to you.
Are you ready to make some real money moves?

The early 20th-century cowboy comedian Will Rogers once said, “Too many people spend money they haven't earned, to buy things they don't want, to impress people that they don't like.” The word for this behavior is consumerism. It is the “make more to spend more” mentality, as well as the “just put it on a credit card” mantra.

 

However, life doesn’t have to be that way. Constantly being in a state where you feel you have to spend money can be exhausting and terrible for your financial well-being. Instead, consider the minimalism approach that will allow you to maximize the quality of your life and save money.

 

What is Minimalism? 


Minimalism is when you cut out anything that doesn't bring joy into your life—literally giving it away and focusing more on experiences and relationships that truly matter.


Image Credit: Aleutie / Shutterstock.com

 

Seven Ways Minimalism Can Save You Money 

 

Minimalism is a massively different way of life for many people. However, you can save money by embracing minimalism in these seven ways. 

 

1. Purchase Less

 

The number one way minimalism saves you money is by spending less on things you don't need and being intentional about buying items you do need.

 

So, start by only buying things that improve your life, and if something doesn't improve your lifestyle, get rid of it. If you don't want to throw away new or rarely used items, consider giving them to family or friends or donating them to a local thrift store.

 

2. Empty Your Storage Unit

 

Storage units are one of the fastest-growing industries. Yet, if you have a storage unit, chances are you rarely use it or have things sitting in storage that you no longer need. Getting rid of some of those items that are longer needed could help you save $20-$50 a month.

 

3. Downsize Your Home

 

Speaking of storage space, how much of your home is used for storage space and how much of it is living space? If you have more storage space than living space, it might be time to downsize to a smaller space!

 

This can be a significant money-saving opportunity for minimalists, especially since the highest expense for the average American is rent (and mortgages in some cases). 

 

4. Pay Less For Insurance

 

Depending on what you give away, your insurance costs could decrease dramatically. 

 

Here are some questions you can ask yourself when you are contemplating getting rid of certain items: 

 

  1. Do I need a third car? 
  2. Do I need a boat or a motorcycle?
  3. Am I paying too much for fancy insured jewelry?

 

How many of those things do you regularly use? If you don't use it and it isn't bringing you happiness, getting rid of those things can help you save big on insurance premiums. 

 

5. Lower Maintenance Costs

 

Lower maintenance costs go hand in hand with lower insurance costs. When you’ve gotten rid of all your unused items, you no longer have to pay to keep them working. 

 

6. Quality Saves Money

 

When you become a minimalist, you start thinking quality over quantity. Most people are consumed by accumulating stuff—almost for the sake of having stuff.


Image Credit: Dmitry Demidovich / Shutterstock.com

 

When you accumulate fewer things, you can focus your resources and buy high-quality items. Higher quality things last longer, are more durable and perform better. When you don’t have to replace your blender every two years because your high-quality blender is still functioning at its peak performance, that saves you $50-$100 a year.

 

7. No Interest Payments

 

The biggest killer of wealth for the consumer is interest payments. When all of your items are financed, it can hurt your finances in the long run.

 

Daily purchases are put on a credit card, the car is financed on a loan, the house is on a mortgage, and the home improvement paint job is financed over the year. Each of these loans takes an extra cut in interest. As a result, even your small interest rate can add up quickly over time. 

 

A minimalist isn't buying these things on credit. Instead, a minimalist can pay for things in cash by only buying what they need, entirely cutting out interest. 

 

The average American is paying over $8,000 a year in interest! If you could invest that money instead of spending it in interest, you could have $900,000 or more in 30 years (assuming an 8% interest rate). That is an entire retirement plan. 

 

Minimalism is a different path in life than the norm, but it has the potential to save you thousands of dollars and set you up for your best life possible.

 

What is something that you could give up to save money? Share your answer in the comments below.


Main Image Credit: Shutterstock.com

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