According to a recent survey, 71% of Americans identify money as a significant cause of stress in their lives. This is a very large number of us.
In some ways, however, this number makes sense. Consider the stats and economic realities we are facing:
- Americans now carry a staggering $1.1 trillion in credit card debt.
- And we carry that record debt at a time when credit card interest rates have soared to all-time highs.
- Housing affordability hit a new low in 2023, leaving the dream of homeownership frustratingly out of reach for many—both young people and older.
- This is partly due to the fact that home prices have surged to all-time highs.
- All the while, many of us recently experienced the highest inflation rates of our adult lives—even now, inflation stubbornly persists above 3%.
- As a result, 40% of Americans struggle to cover routine bills.
- And more than 60% of Americans live paycheck to paycheck.
No wonder people are predicting that economic anxiety is going to stick around for awhile.
The times are tough. And the economic uncertainty has many people nervous.
If that is you, I want to offer a solution. Many of the articles you’ll read in the media will focus on policy suggestions or the specific candidate you should vote for—or even worse, the people you should get mad at because of your anxiety.
And while it is true that you should be an informed voter and understand the full ramifications of political and monetary policy, waiting for someone else to change the economic environment entirely in your favor will waste away your years.
Instead, there is a solution that you can incorporate today, right now, to bring about a change in your level of economic anxiety.
And that solution is: Minimalism.
Now, before you close the page and throw up your hands upset, thinking that minimalism is hardly an acceptable solution for your individual circumstance, hear me out.
Almost all of us spend too much money on things we don’t need. And once we see this, our lives change forever.
It’s understandable that spending our money on things we don’t need happens. In America, we are surrounded by a culture and society that loves consumerism. It is promoted on every billboard, bus station, television show, radio station, newspaper, magazine, and Internet site we visit.
Everywhere we turn, we are told to spend, spend, spend… buy, buy, buy.
We are promised comfort, luxury, and happiness if we buy all the right things. These messages surround us constantly, are lived out by those closest to us, and quickly, subconsciously, become the life we believe we are designed to live.
Make money, spend money. And the more we can do both, the better.
But it is this mentality that has gotten many of us into a personal situation we wish we could avoid.
Did you know the average American spends $1,500/month on nonessentials? $1,500/month. That’s $18,000/year. I’ve mentioned this stat in various circles and am almost always met with the same response: Not me. I don’t spend that much. I don’t even have that much to spend.
And it is true, by the nature of the stat, that half of the American population doesn’t waste that much. But to try and place yourself correctly in relation to that stat, the average median household income in the USA is $74,000 (and the median household size is 3.13).
In other words, if your household income is anywhere near that number (or lower if you are single), you probably are spending $1,500/month on nonessentials. We just don’t realize it because marketers have so confused in our minds what is essential.
And to be honest, I think that number of how much Americans spend on things they don’t need is too low. I did my own math awhile back and came to the conclusion that the average person in America could save $24,630 per year by becoming a minimalist.
If you are struggling with economic anxiety during these times of uncertainty, there is a path forward that can bring you relief: Choose to own and buy only the things you need.
This is the beauty of minimalism. Minimalism isn’t about tiny houses, blank walls, or sleeping on the floor. It’s about deciding to own just the things you need to own and intentionally deciding that there are better things to pursue with your life than physical possessions.
Just imagine how your life would change with an extra $1,500/month. By deciding to buy only the things you need, you could immediately begin paying down debt, getting ahead of paycheck-to-paycheck living, start saving for a down payment, become more generous, or spend more on experiences that enrich your life (although this option might not particularly help your financial stress).
And I can tell you the benefits of minimalism go well beyond financial. Owning only what you need will bring many life-giving benefits into your life: more time, more focus, less stress, more gratitude, more contentment, less comparison, even more meaning, purpose, and intentionality.
If the current economy has you nervous, here’s a solution that works every time: Minimalism.
With Americans now $1.1T in debt, expect it to go mainstream.
Here are a few steps to get you started:
1. Reflect on what truly matters.
Minimalism is ultimately about prioritizing. When we look deep into our heart, very few of us consider consumeristic pursuits our greatest goals. So begin by reflecting on what values you want to guide your life.
2. Start small by decluttering a space in your home.
This physical act brings about two results: 1) we realize how much stuff we have unintentionally collected and 2) we begin to experience the benefits of owning less.
3. Pause before purchasing.
Before buying something new, ask yourself if it’s something you truly need or if it’s just a momentary desire. To take this a step further, consider what you could do with the money if you didn’t spend it on this item.
4. Embrace simple pleasures.
At the beginning, when trying to change our financial circumstances, take extra effort to embrace simple pleasures: a walk in the evening, a chat with a friend, a home-brewed cup of coffee, or a visit to the local park with your kids. There is joy to be found all around us that doesn’t cost money.
5. Adopt a gratitude mindset.
Appreciating what we have begins to change our urge to acquire more.
If you are among the many feeling the economic squeeze, the message is clear: there is hope and there is a way forward. The circumstances surrounding you may have come from your own decisions or the decisions of others, but there is a solution.
Minimalism offers a practical and life-fulfilling path out of financial stress. It leads to a life marked by greater freedom, intentionality, and even joy and meaning if you so desire.
You can do it. We can help.
ChuNam says
I agree that minimalism can be very helpful in today’s economic situation. On average, my family could cut our spending on non-essential items by half or more, prioritizing savings alongside financial investments or regular household expenses. I also strongly advocate for practicing moderation rather than chasing material desires, which allows us more time to relax, enjoy, and appreciate life, reducing unnecessary pressure and stress. We seek greater meaning rather than participating in the financial race and indulging in material pleasures.
gf says
Sounds like you watch a lot of Fox “News”, Joshua. If things are so bad, how are some of us doing just fine? Maybe we didn’t buy every damn thing we saw and wanted? Maybe we didn’t think we DESERVE every shiny object that society said we had to have? Maybe we got into the housing market and bought a reasonabley sized home instead of a mansion to impress God knows who, and made extra mortgage payments so it got paid off in 15 years instead of 30. Maybe we put aside money for emergencies and downturns in the economy so the pandemic didn’t affect us, and then put money into the stock market every month instead of wasting it on $7 cups of coffee every day and other stupid crap, so now we’re set for life? NOT APOLOGIZING to anyone for being smart about money and being frugal. NO ANXIETY here.
Vince says
A denial
P says
I have been following this website for several years now. Not only has it been helpful but motivating as well. In the past several years our economy has gone there many ups and down most not preceded by a pandemic. Though the points made are unseat helpful I would be very disappointed if this article was politically motivated in any way.
Sami says
Kind a
Nanci says
I have to chuckle as people complain about interest rates and inflation. I’ve lived through much higher inflation than this and remember in the 80’s having a mortgage at 8% and 14% interest. We are so lucky that they ever got down to the low 3 percentile rate. That is not the norm historically and so many younger buyers are complaining and gnashing their teeth while they buy non essentials. I think marketing and impulse buying has gotten way worse with online shopping and marketing influencers. It takes a strong will to say no and accept what is and know things don’t always last and will get better.
Judy says
I can hardly afford groceries! The prices are so high! I just paid 16.00 for 6 rolls of paper towels. Illinois is outrageous—- it just depends where you live. I have been so very frugal 🤦🏼♀️
Betty says
Thanks for your reassuring feeds, Judy. I received a request from my customer saying she wants her employer to be informed about those prices. Income are negotiable but not always. Saying living cost and high interest rates do not resolve or convince anyone it is an urgency. I am glad I was born in the 60’s when lots was into question. Now being either in the survival mode or rushed into consuming, my kids chose to not get married. My friends have kids who don’t want to get married anymore and for them having kids is unimaginable. That’s doesn’t us quite far after years of working and now retired in US
Martin says
Do NOT purchase from ANY drives thru. Do not purchase your lunches or dinners. Do not purchase new toys. Unless you have job, drive your (non-EV) vehicle only twice a week.
Future…. Stay away from EV falsity. Stay away from digital currency.
John says
We moved to Nevada to flee excessive taxes in California, bought a smaller house, sold our expensive truck for a more efficient vehicle, cancelled most subscriptions, make coffee at home to enjoy in our garden, etc. we are debt free and use the savings for books and occasional travel. Less is more, and simplicity trumps clutter.
Teresa W. says
I have been seriously working on minimalism for the past 10 weeks. I can already see how this has had a positive impact on my finances. Being mindful of what I buy and own has changed my life.