Being a money minimalist will help you stay focused and avoid taking on unnecessary financial burdens.
In this wild world where we have a heap of financial opportunities and options, it’s important to think strategically about how to invest your time and money.
It’s not about how much stuff or money you have, but how you choose to manage, use and invest it.
On my podcast My Millennial Money I had the chance to chat with Bec from The Everyday Organiser about how you can bring minimalism into your financial life. Being a money minimalist will help you stay focused and avoid becoming weighed down by unnecessary financial burdens.
Here are our top tips for being a money minimalist.
Make your cash-flow lean and agile
First, look at what you spend and question where your money is going. Give yourself permission to let go of things that financially hold you back or pin you down.
No debt, no lock-in phone contracts; you might not even have a car in some capital cities.
Keep accommodation costs (rent or mortgage) below 30 per cent of your net take home income wherever possible.
Read through my budgeting hacks to see if any of the points apply to your situation. You can find more killer budgeting strategies here.
Aim for zero financial stress
Keep it simple, not stressful.
Keep your costs lean and simple. Dodge consumer debt or car loans.
Use a budgeting system that suits your style. Don’t over complicate it.
Consider the ongoing paperwork or management needed for your investments and choose those that don’t stress you out.
Be intentional about your spending
Target everything towards your personal values and goals. Invest the rest.
Have a budget that you always stick to.
Ensure there is no wasteful spending. Don’t just buy “stuff” – invest in things that align with your needs and values.
Challenge each purchase you’re considering – do you really need this item? What essential purpose does it serve? Does it align with your needs and values?
Keep investments lean
Invest in things that suit your situation. Assess your investment options based on what works better for your needs and finances.
This may mean you don’t invest in residential properties, but rather focus on your superannuation. Look at all your options and choose what’s the most lean for your situation.
Consider your diet and lifestyle
Consider a whole food, plant-based diet, or make some substitutes in your diet.
Be intentional with your choices – consider the foods you eat.
Not only are your investments lean and clean, your lifestyle is too. After all, ultimately, you are what you spend your money on.
This article was originally appeared on My Millennial Money and is republished here with permission.
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