Making financial decisions like a minimalist

“Minimalism is the intentional promotion of the things we most value and the removal of anything that distracts us from it.” – Joshua Becker

My wife and I are always thinking about divesting ourselves of stuff. We feel we don’t need much of anything. I wouldn’t say we have all that much stuff to start with, but we are always looking to pare down what we have. The Goodwill and the Salvation Army benefit from our “cleansing.” The following video looks at how to make finances like a minimalist would.

We have always made saving and investing for the future a priority. It paid off. We both were able to retire at least ten years before most people will. Make saving and investing your priority. Spend your money mindfully.

We were shopping at Costco earlier this week. I know, the first thing that comes to your mind is conspicuous consumption, but we tend to only buy what we need; mainly food, paper goods, etc. I always look in other people’s shopping carts and wonder why they think they need the stuff they’re buying. Sure, it’s just my opinion about what’s important and what’s unnecessary, but before you spend money on anything, make sure that it’s adding value to your life. That value could be entertainment, sure, just make sure that you are putting aside money first for your future.

Sure it’s boring to save for a future that’s uncertain but just think about the certainty of having nothing if you don’t save. The earlier you start, the more money you’ll have. Start when you are 25 or younger. By saving $100 every month and investing it in the S&P 500 will likely result in over $350,000 when you retire. You can probably spare $100 every month.

The more you save, the more you’ll have. Live like a minimalist. Save what you can, buy only what you need.

The following video looks at how to make finances like a minimalist would.

 

Photo by Jesus Kiteque on Unsplash

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