Troubles in managing money may originate from many various reasons. For many the most common cause that isn’t discussed much is the philosophy. We, often and without realizing it, are entangled in a culture of consumerism that results in excessive and sometimes completely excessive spending.
One option to stop this is to adopt a minimalist approach to provide an alternate. This is a mindset of financial stability which is more and more associated with the millennial generation who had to figure out ways of dealing with the economic challenges of their early adulthood. The millennial generation came of age amid economic turmoil, and they are also known to be plagued with student debt. This is partly due to having less funds than their parents in their twenties and also due to the need for strategy, many youngsters have learned how to handle this issue by adopting a minimalist style of living. They are more concerned with experience than materialistic They delay or cut out spending on unnecessary things, and purchase less things.
The general idea of this approachregardless of whether or not you’re a young person will save you lots of money. However, in many ways, it could also enhance your relationship with personal finances.
Recognize unnecessary extras
If you take on a mindset of cutting down on expenses instead of being attracted by them may be amazed at how quickly you’ll be in recognizing unnecessary luxury items. A particular example has been quite popular in recent times as people seek ways to recreate their actual situations in their homes during quarantines. Many are seeking ways to exercise at home and it’s likely that many of them will not go back to their yoga studios as well as personal trainers. Although there are certain things you can do in the gym, but you aren’t able to perform at your home, just a thought-provoking and online research can lead to an effective and efficient home workout which doesn’t cost you a dime.
The people who are minimalists can discover little compromises like this all through their lives, and not just for other expenses. The most obvious examples are cooking in place of take-out or eating out; choosing environmentally friendly and low-cost modes of transportation and reducing energy consumption at home.
Make a sustainable choice when it comes to spending
Sustainability and minimalism share alike values: living in a simple way, free from objects of material possession, and finding the meaning in all aspects of our lives. Living a minimalist way of life will likely reduce the overall amount of consumption of products such as electronic devices. This is also a sign of sustainability when it comes to practice, as it calls for people to not buy items in bulk to protect the environment and for ethical reasons. Therefore, by avoiding buying the latest gadget to be trendy, you’re conserving cash, but the environment and all of its people who depend on it.
In reality, sustainability has become such an important issue that it’s no longer an idea that people adhere to it’s an important matter that should be researched. Sustainability isn’t just changing how people and their families consume products, but it’s changing the financial outlook of various industries. All over the world, major enterprises are making the switch to renewable energy, environmentally friendly packaging as well as healthier work conditions. All of which are paving the way towards a more sustainable future.
The same principles can be applied at the individual level. For example installing solar panels even though it is a little of an initial cost, could be worth it in the long run. Cooking the vegetables which are available, or grown in your own backyard can save you money over the course of time. It also promotes your health and avoiding costly medical issues. These examples illustrate how important it is to think in the long-term in order to foster the growth of your finances.
Prioritizing Experience
We have mentioned that the millennial generation is often more concerned with experience than materialism. This is an important knowledge one can gain by adopting a minimalist view. One of the best examples of this in practice is in the way many young couples have begun planning weddings. A lot of them are paying less for wedding rings (with the majority of Gen Z and millennials believing that rings should not exceed $2,500). In the end, they’re discovering the first few days of their weddings less stressful. Many are having more enjoyable honeymoons and perhaps, even “perfect” weddings.
It’s true that experiences are starting to be more important. As a minimalist financial planner you’ll soon observe a myriad of scenarios where expensive items can be exchanged for better experiences. They don’t have to be limited to large occasions, such as weddings, but even the simplest gatherings can be made more memorable in various ways. For instance, families could cook together for birthday celebrations instead of taking an extravagant excursion. Going on a picnic with your friends can be equally, if not as enjoyable as attending an extravagant party.
The bottom line is that they are all very simple adjustments to make to your mental outlook. However, the impact on the way you interact with money in your daily life could be significant.
Are you looking for one-on-one assistance to re-imagine the relationship you have with your money? MMI provides free financial counseling 24/7 on the web and over the phone.
