The Intersection of Minimalism and Personal Finance

stephanie xenos-minimalism.jpg

By Lin Nguyen

Not too long ago, Marie Kondo took the world by storm with her KonMari method, a process for tidying up and living a minimalist lifestyle. Here at Money Muse, we’ll help you “spark joy” at the intersection of minimalism and personal finance.

Minimalism, in general, is owning fewer possessions and decluttering your life. With consideration to personal finance, minimalism is intentionality. It’s using money in a way that aligns with your values and focuses your money towards the things that bring you the most joy. For some, that’s being the best dog mom in the world and giving your pup everything it could ever want. For others, it’s having the finances to live nomadically. 

Find out what you’re passionate about.

This is a big and broad task. Think about what’s most important to you and what your ultimate happy self looks like. Write down all the things you really enjoy and find the connections between them. 

How does this fit into your personal finances? If exploring your hobbies and trying different professions would make you happy, having the financial freedom to say yes or no to any job prospect can give you the security to do that! If you want to spend your life relaxing without a care in the world, consider what it would take you to retire A.S.A.P. Maybe you would rather “retire often” and take 2-3 years here and there to take a breather and visit Costa Rica or Romania or Cambodia

Where you’re happiest in life and with your money is different for everyone, but finding out where that is will help you organize your finances in a way that will help you achieve those goals.

Develop a simple financial plan in line with your goals.

With minimalism, simplicity is of the utmost importance! Create a budget that groups your expenses into a few categories to avoid having to dip into different expense categories or have too much to manage. For the minimalists Joshua Fields Millburn & Ryan Nicodemus, a simple budget includes rent, spending money, pets, transportation, cell phone, utilities, and subscriptions.

Lastly, cut the extra monthly expenses.

Minimalism is also about intentionality. Keep the finances that will help you reach your goals. Cut everything that isn’t an absolute expense or in line with your passions. Some examples of things you can get rid of from your monthly budget include new clothes every month, eating out during the week, or having the newest model of car or phone. Consider what you already have that you don’t need or use, and maybe you can sell items as you rid yourself of them!

You don’t have to scale down your entire lifestyle to adopt minimalism and achieve your financial goals unless you want to! Allow yourself things along the way that spark joy and keep a healthy relationship with money. Remember that minimalism isn’t about limiting yourself; it’s about making thoughtful choices about your finances to help you reach your goals.

If you’d like to learn more about our minimalist, Stephanie Xenos, read her interview with Spruce with Rachel here!