Minimalism is an approach to life that has many applications. However, not everyone realizes that one of the most practical minimalist applications is to make your finances simpler. Fortunately, you can find four of the most effective ways to do this in my post below.
The more accounts you have, the more work you will need to do to balance them. Instead, trade-in multiple accounts and savings pots for a single one! Just using one account for everything is the easiest thing you can do, as long as you note how much you need for each expense every month.
For example, you won’t lose track of your savings if you record the figure you had in your account last month, and how much you expect it to grow by this month. A tactic that you can apply to all the different parts of your budget and that will keep you organized in a more minimal way.
Purge the paperwork
Next, applying the ethos of minimalism to your financial well being means getting rid of all that paperwork. There is no need to be ashamed if you have file folders full of old statements and bank letters though most of us do.
Instead, use this clutter as motivation and cut down all the money related paperwork you have in your home. One way to do this is to shred and dispose of anything over three years old for personal finance and 7 for business. You can also set up a scanning station so you can digitally record any important final paperwork and store it on your computer. Alternatively, swapping to online statements will remove the need to deal with any paper at all.
Go debt free
Debt is the antithesis of minimalism. Why? Well, it not only costs you a great deal, but it clutters up your life with tasks that could otherwise be avoided. Such as keeping track of balances, interest rates, and making payments on time.
To that end, one of the most significant applications of the minimalist mindset when it comes to finances is to go debt-free. However, this is not often something that happens overnight. Instead, it is essential to put in place a debt payment plan and even get some help from a debt relief company, as this could save you a great deal over the long run.
Of course, not everyone has had to deal with a debt relief organization before. However, the good news is that if you are asking the question: How does DTSS debt relief work?, you can find out quickly and simply online. Thus, getting you one step closer to a genuinely minimal relationship with money.
Maximize your income
Before we go into detail on this tactic, it’s essential to outline what maximizing your income is not. It is not having a side hustle and your regular job; it’s not working harder or doing more hours to gain more money either.
Instead, the minimalist approach to maximizing your income is about doing more of what brings in the most money, and less of everything else. The idea is that the more hours a week you spend earning at the maxim rate, the less you will need to work overall. Now, there isn’t anything much more minimalist than that, is there?