I never used to save money. Whenever I tried to save I always tend to use it or overspend on items. This has caused me to owe thousands in credit card debt.
Our schools never taught us financial literacy. Even when our parents tell us we should save they never showed us how at least my parents didn’t.
Saving money can be a real challenge especially if you have other expenses. If you live with your parents and don’t pay for anything it’s a good to start saving money. This will give you a head start for when you will eventually be on your own.
When I started downsizing and acquired less materialistic possessions I realized how much I was spending. Having a credit card and being finically inept at the time I was just careless about spending.
I kept increasing my credit limit and racking up debt. I kept thinking to myself “oh no worries I’ll just keep making the minimum payment”. The long term version of this is; you’re paying back more than you borrowed because of the interest accrued. This is how banks make their money. We keep borrowing until we are so far in debt it becomes difficult to get out of it.
Living minimal has one of the most cost saving benefits and you quickly see how much more money you have when you limit yourself from spending. This is what I did to save when I began living minimal
01. Stop buying clothes
With the copious amount of clothes I already own most of which are hardly worn I didn’t need to buy more clothes. I was buying clothes for the sake of feeling good or to always be in style. I’ve thrown away a lot of clothes. and bought more only to throw it away months later, this was just wasting money. Having fewer clothes makes it easier to choose what to wear and more efficient when it comes to washing it.
02. Eat less
I also cut down on what I ate. Eating less means spending less. We consume so much unnecessary food which leads to weight gain. We don’t even realize the weight gain until someone else points it out.
I got told by a co-worker that I’ve gained some weight around my stomach and I quickly realized how much I had gained after checking the scale. Sidenote (this is not to fat shame anyone, you should feel comfortable in your body). We spend a lot of money on junk food not because it cheap but because of how easily accessible it is.
Once I cut out buying junk food, I began to notice the weight dropping. I was consuming fewer calories as a result of not spending extra money on unhealthy food. A muffin alone is around 450 calories and I can easily eat 3 of those in one sitting. I began intermittent fasting which worked for me.
03. Open a high yield savings account
I opened a high yield savings account. I allocated a set amount of money once my other bills was accounted for. The rest went right into my high yield savings. Calculating my expenses and how much I made, helped me figure out how much I was gonna save in a given period of time. I was amazed by how much I would be saving due to living minimally. Now with more money in my savings, I have more to invest with. I can cover unexpected financial burdens that may present itself.
04. Stop impulsive purchase
Being minimal makes you resist the urge to impulse buy. I removed credit cards saved on online shopping apps such as Grub Hub and Amazon. This made me less likely to buy on impulse. I think twice before I try to accumulate things that I don’t want. This has helped me saved a lot in a short amount of time.
05. Buy it used
Instead of buying something brand new try to look at used items. They generally will be cheaper and still in good condition. This can be anything from Auto to Household items. I found and bought a few items that would have cost me a lot more money. Did you know that the marketplace for used furnitures generate hundreds of millions of dollars per year. If you have something in your possession try to list it on a marketplace such as Facebook or craigslist and earn some money. I sold a few items there and that allowed me to put the extra money into my savings.
Conclusion
Living minimally can be a great lifestyle choice. You feel less cluttered and also save a lot of money by not accumulating a ton of things you don’t need. You will have a lot more money in your savings but you should also educate yourself on financial literacy. You can easily waste all your savings even if you live minimal. You have to be aware of what you spend your hard earned money on.