Minimalism: A Practical Guide to a Simpler, More Fulfilling Life

Living simply is a goal for many. But just because something’s simple doesn’t mean it’s easy. Striving to live a minimalist lifestyle goes against the grain of what many of us are taught growing up. With so much of our culture and economy driven by impulse spending or unnecessary goods, minimalism is the antithesis to that.

You’re reading this article because you’re curious about minimalism and what it could mean for your finances. Keep reading to learn what a minimalist lifestyle is and seven tips to make it work for you.

What Is A Minimalist Lifestyle?

People who live a minimalist lifestyle prioritize their personal relationships and experiences over material possessions. Minimalism encourages people to only live with the things that they need, without the desire to accumulate more belongings.

At its core, minimalism places the value of time spent over collecting possessions. It could be with a goal in mind, like the FIRE movement’s goal for early retirement, or it could be solely to reduce money spent on needless items and focus it more on experiences.

How To Live A Minimalist Life: 7 Tips

“Less is more” is an adage many strive to live by. But living minimally isn’t always easy, especially if you’ve spent your life doing the opposite. That’s why we’ve compiled some tips to help you live in a more mindful, minimalist manner

1.  Start By Selling A Few Major Items

Want to jump-start your minimalist lifestyle? Sell off some major items. Musical instruments, pieces of tech, expensive clothes – anything of value that you do not use regularly – can be donated or put up for sale.

You can evaluate the necessity of items by following something called the 90-day rule. If it hasn’t been used in 90 days or more, chances are that you don’t need it.

2.  Consolidate Your Accounts           

The average American has multiple bank cards, including debit cards. Some may have multiple savings accounts, investment accounts and/or retirement funds. There are minimalists who recommend applying the concept of minimalism to your finances.

This means having one savings account, one checking account and one retirement/investment account. The main benefit of this is it’s easier to see where your money is if you have fewer accounts. Fewer accounts also means less exposure to identity theft. The only main drawback to this is multiple savings and checking accounts may help you budget and save for specific reasons.

3.  Use One Credit Card Only 

Along with multiple banking accounts, many Americans have multiple credit cards. Applying the minimalist lifestyle to your credit cards makes plenty of sense.

Minimalists focus on paying off debt, not accruing more. They can take advantage of one credit card with great perks instead of spreading their debt over multiple accounts.

The plus side to this is that it makes paying off debt simpler. You can keep old accounts open, but unused to keep your credit history on your report.

The drawbacks are you may have less available credit and you may not get specific perks, like with store cards. But if you’re really subscribing to a minimalist lifestyle, you won’t need those anyway.

4.  Donate Excess Clothes And Goods 

Donating your excess clothes and goods (like furniture, decorations, etc.) is an easy way to start down the minimalist path. It will clear up space in your home and give the items a chance to be used instead of sitting in storage.

This purging of excess items can benefit local nonprofits and charities. Many people need nice clothes to wear to job interviews or everyday clothes that may not fit you anymore. Maybe you have a stockpile of COVID toilet paper gathering dust. You could free up the space by donating it.

5.  Focus On Hobbies And Practices

Instead of spending your time shopping or collecting, focus on things that give your life meaning. While many people are spending their time taking care of their material possessions, minimalists use that time to learn new skills and hobbies.

For example, organizing a wardrobe or a shoe collection can take up a lot of time and effort. There’s the cleaning and seasonality that goes with it. A minimalist gets more out of the pieces they own, and uses the extra time to enjoy hobbies, exercise or grow their skills.

6.  Express Gratitude Daily

Many of us have a lot of reasons to be grateful. Whether it’s shelter, relationships with others, access to food – being grateful is a big part of being happy.

Gratitude is an important tool that shouldn’t be delegated to just Thanksgiving Day. When you express gratitude for what you have, you’re happier with it.

Instead of making a purchase to fulfill some big craving, expressing gratitude helps you retain joy and focus on the good happening in your life. By flexing your gratitude daily, you’re growing a muscle that will not only help you live simply, but also be happier doing it.

7.  Build Your Relationships

Minimalists agree that the less time you spend stockpiling and taking care of your stuff, the more time you have to build relationships. Relationships can help you establish a lot of things in life: emotional stability, a sense of identity, a greater sense of meaning outside of your own pleasure – to name a few.

Financially, this means shifting your focus from working to buy more stuff to using your finances to help you build memories with those you love. Maybe that means planning a vacation with your friends or putting a down payment on the home your kids will grow up in.

It can also mean working toward earlier retirement so you have more time to spend with your friends and family while you’re still healthy.

What Are The Benefits Of Living A Minimalist Lifestyle?

People can benefit a lot from adopting minimalism. Even if it’s just some pieces of the minimalist lifestyle, there’s room for personal and financial growth. If it helps you meet your goals and fits with your lifestyle, much can be gained from taking a minimalist approach.

Let’s talk about a few of the core benefits:

• Less focus on material possessions: Lessening your focus on material possessions can help you align your goals around experiences and people. Instead of spending thousands on a wardrobe or a collection, you can use that money to make memories with those you love.

• Eliminates financial burdens: Minimalism can help people save money. If you’re buying fewer possessions, it frees up cash to go into savings or paying off debt. This is especially helpful if you’re already on a tight budget, like if you have a large family or are a college student.

• Encourages sustainability and environmentally friendly practices: The less stuff that gets bought; the less stuff that gets made. By focusing on what you already own and using it completely, you’re making steps to live a more sustainable lifestyle. Making one quality purchase instead of multiple cheap purchases is often better for the environment and your bank account.

What Are The Drawbacks Of Living A Minimalist Lifestyle?

Minimalism isn’t easy. Ironically, a truly minimalist lifestyle may be easier to attain for wealthier individuals. Here are some drawbacks to consider when thinking about minimalism:

• Experiential purchases can be expensive: Traveling and/or visiting major attractions can be expensive. You’ve got ticket prices, lodging costs, extra food costs, etc. These can especially add up for families. While there are more inexpensive options (i.e., camping), they may not be as interesting for everyone.

• Difficult to let go of personal items: If you have a sentimental side, letting go of personal items can be hard. You may have memories tied to these items or feelings that keep you from getting rid of them.

• Quality over quantity may not be attainable: Buying a quality item that lasts for a long time might not be doable for everyone. For example, maybe you need a laptop and don’t have much money. A $400 laptop may get the job done but likely won’t last as long as a $1,200 laptop. Going with the $400 laptop now makes more sense because it’s what you can afford.

The Bottom Line: Consider Minimalism

At its core, minimalism is a way to realign your values around making your finances count. It can help you eliminate your debt, focus on making smarter purchases and derive more meaning from your relationships and experience instead of your belongings.

Of course, as with any sort of specific lifestyle, it has drawbacks as well as benefits. Maybe you’re interested in some of the tenets of minimalism, but really can’t let go of certain sentimental pieces. That’s OK! You can still make decisions to cut back on the clutter and streamline your spending.

Ready to start your minimalist journey? Start putting your money to work using a personal budget.