Reading Time: 4 minutes How Minimalism Helps You Achieve Financial Freedom
While many people have come up with their pathways to get them to a place of financial security and freedom, one movement that seems to have some serious staying power in this department is minimalism.
The idea that less is more applies to most areas of life, except money. More money means more freedom, and it even means more happiness up to a certain point. It means you can give generously, which has even been shown to contribute to living a more fulfilling and longer life.
Let’s take a look at how living a life of minimalism can help you achieve the level of wealth you’re working towards and the freedom we all desire.
Sparking Joy Through Selling
You’ve likely heard of Marie Kondo and her best-selling book “The Life-Changing Magic of Tidying Up: The Japanese Art of Decluttering and Organizing.” A central component of the book is while going through your house, asking if the items in your home “spark joy” for you and if they do not – to get rid of them, after thanking them, of course.
You know what else sparks joy? The art of selling your unwanted and unused items for cash. Cash that you can save, the money you can invest in college savings plans or 401k.
So, while you declutter, keep items that hold sentimental value – fine art, rare vintage jewelry, and sentimental items. Set aside any valuable clothing, furniture, sports equipment, even books and take the time to sell them. We actually have a rule in our house that we try to follow. If we haven’t touched something in a year we sell it, donate it, or throw it away.
Plenty of people have made tens of thousands of dollars through their journey to minimalism and used it to pay off debt and so much more.
Building Better Buying Habits
After someone has gone through their home and taken the time to see all of the items they spent hard-earned money on being donated or sold, it’s an eye-opening experience when they go shopping again, everywhere from the grocery store to clothing shopping, even down to essentials.
Leading a more intentional lifestyle comes with many benefits, like positively impacting the environment, less decision fatigue, more time, and better spending habits.
Taking the time to decide if something is a genuine need or a simple want is a great start. As you get used to spending less on “wants” and watching your checking account grow, you’re more apt to start transferring more into savings.
When you begin on minimalism, it may initially just pertain to the items in your home, but it quickly spills over into all areas of your life, including your buying habits.
Teaching Children Financial Health
Living a life of intention and including your children in your journey teaches them the value of money and the actual cost of owning things. When we teach our children financial knowledge and health, we can show them the work that goes into buying things and maintaining them.
This can even parlay into them taking better care of their possessions and cleaning up their rooms.
Imparting intentionality to your children is also a great way to give them an allowance for jobs well done and helping around the house, teaching them wise spending and saving habits. While parents have mixed feelings on both sides regarding allowance in general, it’s a good idea to start talking about financial health and freedom from a young age and in age-appropriate terms.
Enjoying Fewer Purse Strings
When you have less debt, fewer possessions, and less in general, but more financial freedom, you can enjoy life the way you’d always dreamed of. By getting to this place of fluidity, you can retire early, you can invest smartly, and you could even choose to be a nomad depending on what you do for a living – if you even decide to work at all any longer.
The power and relief of living a minimalist life are second to none. The money you save can also become capital to invest in other ways to make passive income while you enjoy life on your terms.
It is never too late to start downsizing areas of your life that no longer serve you. What ultimately happens when we do this is new doors open to us to experience life in ways that would have never been possible under the weight of too many belongings, too large of houses to store said belongings, etc.
So here’s to you and your impending financial freedom! Happy decluttering!
Erin is the mother of identical twin girls and their slightly older brother. She is a domestic engineer, and previously had a career leading customer service teams for a major HVAC company. Cleaning without harsh chemicals, and cooking easy and usually healthy meals are part of Erin's daily life. She volunteers with youth leaders, and genuinely wants to help others win. Erin has a degree in Communications, with a focus on Broadcast Journalism.