What is Financial Minimalism?
Embracing the principles of financial minimalism is about bringing clarity to your financial matters, making intentional money decisions and aligning your values with your spending. In a culture that values spending and material possessions, trying to adopt a mindset of “less is more” may not be popular, but it can be a critical step toward greater joy and clarity and better finances.
Tips to bring minimalism into your financial life
Save before spending. Many people pay their bills and then might save whatever money is left over, if any. But the opposite is what you should strive for – save first and then spend what remains.
Bring mindfulness to your spending. Declutter your finances by taking a good look at your spending and see how much goes to fixed vs. variable items. Differentiate between needs and wants. As for wants, ask yourself what brings you joy and which expenses you can do without.
Monitor online shopping. Try limiting your use of one-click purchasing. Shop in person, use cash, and buy with need and intention.
Assess your relationship with money. When it comes to making personal financial decisions, your psychological makeup and the way you think about money can work for or against you. Be mindful of any money scripts (ingrained attitudes and behaviors) – they have a lot to do with how you manage your finances today.
Talk about money. It’s a loaded and complex topic and having conversations about money with family and friends can be challenging. But doing so can help you become more aware of your own money habits. You could become better able to change the behaviors that are holding you back from achieving optimal financial wellness.
WAEPA’s Free Financial Wellness Program
WAEPA provides FREE financial wellness planning through our partnership with EY. As a WAEPA member, this program gives you access to important tools and financial advisors to help manage your day-to-day finances and build a retirement plan for your future. Visit waepa.org/ey to learn more.
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