Though we need not live the life of an ascetic, we can extend these concepts to Personal Finance to bring contentment to our lives and at the same time bring a balance in our personal finances -
Less Greed and Less Wants leads to Less Expenses – Many people are not content with that they have. They want the latest smartphone, yet another luxury car, more food, more wine and one more vacation house. It leads to many problems like overspending, health problems and lack of mental peace.
With minimalism, you will spend less and therefore have more money. The money can be used in different ways – investment, charity etc. You will also have lesser things to manage and organize which means more time, effort and money in your hands to do what you really want to do.
Less Materialism leads to Less Work – Our grandparents had a good life. They had fixed hours at work. Working from home and checking mails from home were alien concepts. They had a good work-life balance. You are probably spending many hours at work and commute. You will spend even more time and effort at work if you have more wants. This leads to health problems, overspending etc.
With fewer wants, you need not spend every minute of your life earning money. You can use the time to nurture yourself and be with loved ones. This will surely enrich your life.
Reduced Debt leads to Better Finances – How many loans do you service? How much of credit card payments are overdue? Debt leads to increased expenditure in terms of interest and penalty payable. If you buy less, you will spend less and borrow less. A debt free life improves your financial portfolio. You will not have too many monthly payments and can use that money in better ways like monthly SIPs. More so, if you have no debt, the decision of taking a break from your job or trying out a new venture is easier.
Earlier Achievement of Financial Goals – Leading a minimalist life means you will have less of consumerist financial goals. It also means you have less of expenditure and debt. In this simple life, you will achieve your financial goals smoothly. You will have your retirement fund or children’s education fund much earlier in life than if you lived a non-minimalist life.
More Generosity and Charity – We can all do our bit in giving back to the society. We can use our time and/or money to help the underprivileged. With a minimalist lifestyle, you will have more to give and more time to utilise on charity work. You will not cling on to your possessions and donate them whenever required. Apart from helping those in need, generosity makes you feel better and brings more meaning to your life. You might even motivate your children and friends to give back to the society. At the same time, it gives you tax breaks and reduces clutter in your life.
A minimalist lifestyle reduced physical stress, emotional stress and even reduces your carbon footprint. Thus it helps you and Mother Earth.
Let us know if you can implement some changes to bring some amount of minimalism and if it has helped you improve your lifestyle and financial portfolio.