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.
Tara says
Taking baby steps on this journey to feeling comfortable letting ‘stuff’ go that somehow I hold on to. Thanks Joshua, your article popped up in the perfect time for me to get serious about this concept and move forward. Looking forward to feeling more organized and simple- less stress- more calm!
Meg Rymiszewski says
I really appreciate all the great encouragement these articles give to people who seek simpler lives. It’s easy to see how almost everyone could benefit. But I agree with other commenters that the economy is very strong right now, and would like to see you use the terms average and median correctly. Average does not mean half is more and half less, as that number can be skewed by a couple very large or small numbers. And there is no such thing as “average median income.”
joshua becker says
Thanks for the comment. If it helps, the average family household income in the US is $74,755. Source: https://www.usatoday.com/money/blueprint/business/hr-payroll/average-salary-us/
Hope that helps with my argument above.
AJ Young Jr says
Man, that’s a great perspective. I’ve been toying with idea of a minimalist life for quite a while. I’ll take some steps towards it, this year! Thanks a lot!
Pat says
Good read. I started my minimalism journey years ago with my friend Ann W. Cleaning out and donating all the things I no longer used or needed. It is a change of mindset. No, I don’t live in a tiny house or deny myself the small pleasures. I still get a Starbucks coffee almost every day. But living with a minimalist mindset is very freeing. I focus only on the important things in life. And on experiences and not accumulating things. Thank you Joshua for all your writings on this subject and life style.
Susan says
This article is misleading.
I keep balances on credit cards and always pay 0%. I earn points and cash back and travel for free because of my cards. I pay them off before the 12-18 month 0% rate goes up.
I own a small business and my business is doing very well. The economy is better than it has been since Covid and is getting stronger daily. The stock market is finally back in a good place.
If you want to share tips and tricks on being a minimalist, that is fine but don’t spread untrue comments about the economy to strengthen your own slant.
Judy says
This economy is in the toilet!
Bryan says
I’ve been following you for a while now. I enjoyed your book The Minimalist Home and I have begun reading every single article you post here. Incredible stuff!
joshua becker says
Welcome Bryan!
LJ Anderson says
Current economy is very strong. Not sure why you’d suggest that it’s not. People’s personal spending habits are different matter.
Betsy says
This is so true. We keep a spreadsheet of all purchases and when I see the amount I spend on craft supplies I cringe. A few dollars here, a few there and somehow it’s from $75. to around $100 per every other month. I feel such guilt. Lately I’ve been really trying to use what I have. I’m hopeful I can stay with this mindset.
Julia Kasdorf says
Wow thanks for your honesty, Betsy. It’s time for me to boldly visit my bank statement to do my own cringing. I bet you can drop the guilt tho. It’s not required. :-)
Mary B says
Hi Betsy, I was doing the same thing. I found I was spending about $100 a week on sewing/quilting fabric and supplies. I decided to make January a “no spend” month. It was tough, but I stuck to it. That made February much easier to not spend anything on sewing. Somewhere between February and March I had an awareness that I didn’t need all that stuff. It’s like a switch flipped in me. I’m now using up what I have and don’t find the stores, ads or internet ads have the same appeal anymore. I’m satisfied with what I have and more interested in seeing what I can creatively do with it.
veronica says
A key step not included is: track what you spend. Ask for a receipt for everything you buy. EVERYTHING. No matter the price. Save the receipts and then look at them at the end of the month. You might be surprised by what you find.
Jessica says
Sorry, but you got this wrong again. People aren’t anxious about the economy because the price of luxury goods has gone up or they can’t afford 2 weeks at Disney this year.
They’re anxious because groceries have gone up by 25%. They’re anxious because rents and mortgage rates are high, and they have to live with their parents or 3 roommates when they did ‘all the right things’ by getting that engineering degree or whatever and they already don’t Starbucks/party/drive a Tesla. They’re anxious because their student loan payments prohibit saving for a home down payment. They’re anxious because utility rates have gone up by 20-30% in many areas (AEP Ohio raised electricity rates by 28% this year and plans another similar increase in the next 2 years). They’re anxious because appliance prices, homeowner’s and auto insurance rates, car prices, and home repair costs are through the roof. They’re anxious because they can either pay their food/utilities or their medication costs, but not both. They’re anxious because their CoL increase was 2% but their health insurance premiums went up by 20%.
These issues have nothing to do with gratitude, purchasing less stuff, etc. Fewer people than you think have some kind of shopping problem. A majority of Americans live paycheck to paycheck because basics cost more than what they can earn, and buying more purses, pairs of jeans or days at Disneyland isn’t even in their thought process.