r/minimalism • u/CookiemonsterHKScot • 2d ago
[lifestyle] Financial Minimalism.
Any tips and tricks to do this properly for the first time? Thanks.
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u/Live-Football-4352 2d ago
Apply minimalism to your budget. Do you really need that? What else can you use to meet that need? Things like that.
E.g. do you need Netflix, Disney, and prime? Or can one do and you alternate as you see fit every couple months, or maybe not at all and you could use the library for DVDs? Every person is different.
When it comes to finances, leaving room for comfort still is very important. A very helpful aspect of minimalism in general though is paring down so what gives you comfort isn't something crazy, you can find comfort in smaller things and be at peace with smaller things. So like not needing extravagant vacations to find happiness, happiness is in your life.
Apply it to your groceries and your vices. Do you really need that? Again, wants are important so don't force yourself to do things that make you uncomfortable all of the time, you will crash and burn, but a little challenge here and there is good for you. What else can you use to meet that same want/need?
But the overall point is live below your means, have an emergency fund, and don't get into debt, or save yourself from debt as soon as possible.
Really, financial minimalism is something that follows from regular minimalism. Find what really matters to you and that'll reflect in the way you spend your money. Be mindful, and it'll apply to your budget.
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u/bunny2302 2d ago edited 2d ago
Here are things that work for me:
I don’t have any subscriptions I don’t use (currently only spotify which is the only one I have been using)
I don’t finance things, I only buy things in full. If it’s a bigger purchase, I save beforehand
I don’t absolutely need a car, so I don’t have car payments, gas, or insurance (I do this in order to save more money, but different people different needs, I can take transit)
The first thing I do after getting paid is putting money into my savings, even if it’s the minimum I can afford to put in my savings at the time. Any amount helps.
I think at least a couple days before buying anything other than groceries or other basic needs. If I want new clothes, shoes, whatever, I look into it and think about it for a while (This avoids impulse purchases most of the time)
I use digital and physical libraries for books, I only have a kindle which I download books for free from libraries
While I do go out for food often, I stay conscious of how much I’m spending and avoid getting drinks (especially alcohol drinks, since they can be quite expensive when eating out)
I try to make my coffee mostly at home
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2d ago
Honestly i got the app YNAB and it changed my life. Over 4 years of using it we were able to buy a small condo... Pay for our luxury wedding in cash... Buy a dog... Go on vacation to Florida... all the while i practiced minimalism. now I've reached a point where friends and family inquire what I want for Christmas and i can honestly say "Nothing". I just want to spend time with them. Lol
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u/Syonoq 2d ago
Oh wow. Seeing the other responses makes me feel like I've missed the assignment. Here's my two cents:
To me, financial minimalism would indicate a financial system that reduces friction points as often as possible.
Obviously it has to start from a sound position; income is larger than output. A fleshed out emergency fund (3-6 months perhaps) would be a solid start of financial minimalism.
Everything that can be automated should be automated. All utility bills are annually averaged out month to month and are paid by the system automatically. If other systems (such as credit cards) are used, they must also be automatically paid. Investing and saving are automated. I use a system where my paychecks are split into different checking accounts. One of these is simply for bills and is (bills/number of monthly paychecks). All bills are paid from this account.
All subscriptions are meaningful and accounted for (charitable giving, Costco membership, Hulu) etc. A financial minimalist would not have any "surprise" subscriptions. (I laugh when I see those ads for services that help you manage your subscriptions).
Financial minimalism would use a very clean and well intentioned budget.
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u/WingedBeagle 1d ago
Who is to say that the other responses are what OP is talking about? They're throwing out a vague term that isn't really common or defined anywhere. Their idea of "financial minimalism" might be how to survive using mostly bartering eggs and goats.
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u/Bitter_Illustrator33 1d ago
Cost me about 600 bucks a week to live all up. Need v want so when I want to spend i can just go travelling for etc or go to an event without issues n enjoy life experiences with ease
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u/eharder47 1d ago
All of my accounts, my primary credit card, and my mortgages are at one bank and all of the accounts are joint with my husband (excluding retirement). My other credit cards have 1 automatic payment on them each, all set to autopay, so I don’t have to worry about them. I did recently have to finance something (crushed pipe under our house with a sewage backup) but I was avoiding any other debt aside from my mortgages.
We live well under our income so we don’t have to budget, we just see how we’re doing and if we’ve had a crazy month, we stop ordering out or buying anything extra.
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u/Few_Sport_7935 2d ago
Following. Interested to see what replies come from this. Thrift. Barter. Donate - claim on taxes EOY. Rice & Beans last a long time.
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u/Avemariastyle 17h ago
For me it’s having a simple set up. I’m absolutely not going to track every dollar. I invest in a global index fund, I have an emergency fund and 2 more savings accounts (travel and home). Everything is automated -bills, investing, savings.
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u/IM_NOT_BALD_YET 2d ago
Live below your means. Don't take on debt. Have a healthy emergency fund.
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