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3 Ways Being A Minimalist Can Multiply Your Savings

3 Ways Being A Minimalist Can Multiply Your Savings

Have you ever cleaned your house or apartment and wonder to yourself: how did I get so much stuff? Well, you’re not alone in your thinking.

There’s a new movement of people who are fed up with the clutter of buying too many things. That movement is called minimalism.

There are no set rules for becoming a minimalist. There are common misconceptions about becoming a minimalist, such asif you become one you won’t be able to buy anything fun or exciting. 

But minimalism isn’t about restricting what you buy to the point of unhappiness. Instead, minimalism is a shift in your thinking from a consumer mindset to a happiness mindset that can provide freedom in many parts of your life.

Here are a few examples of how becoming a minimalistcan multiply your savings:

Become more mindful of your purchases

With the countless megamalls of America and the rise of online shopping, it’s become a little too easy to make purchases without thinking. Practicing minimalism will help you become more aware of your purchases.

Adopt a minimalist mindset and question what you purchase and whether it adds value to your life or not. You can cut down drastically on what you spend on purchases, without sacrificing any quality of life.

Some minimalists go as far as cataloging every item they own, to take stock of what exactly they have and use. If something isn’t being used or adding any value, they will sell it or get rid of it.

While you don’t have to go to this extreme, it does help to examine what adds real value to your life, and what adds clutter instead. By becoming more mindful of your purchases, and watch your savings grow.

You will need less space

Become a minimalist, and you can reap the benefits in your pocketbook in more ways than one. By having fewer items, you will need less space. Often when a large home is purchased, much of it is to store things that are hardly ever used.

By getting rid of those things, you can open up extra space. You could rent out a spare bedroom for extra income, or even get a smaller place that costs much less without sacrificing any room. Free yourself of your clutter, and watch your bank account grow.

Small size it

Vehicles and transportation are a considerable cost for the average American household. According to a survey in 2017, the average car costs $9,576 per year to own and operate.

Being a minimalist makes you ask yourself: Do I need this new and large vehicle? Or will a smaller one do just fine? If you have a larger vehicle, you might realize you can downgrade to a smaller one without any impact on your life. By having a smaller car, not only do you save on the cost of the car, but also the gas consumed and probably the insurance too. 

A small sedan will cost you about 50.5 cents per mile to operate, whereas a 4WD SUV will cost you 81.5 cents per mile to operate. The costs add up to thousands of dollars in savings a year. That money can go towards your investments and savings.

You can spend more time walking or biking somewhere, which can give you more exercise and benefit your health. Or maybe becoming a minimalist might make you decide not even to own a car at all.With the rise of ride-shares like Uber and Lyft, one day having your vehicle may not be necessary at all anymore.

Final thoughts

Becoming a minimalist can free you from a consumer culture that might be restricting your freedom.Adopt the minimalist mindset and watch your savings soar.

If you enjoyed this post from Christopher Liew, CFA, and would like him to write finance content for you, check out his website @ Content Chris. You can also connect with him on LinkedIn here.

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