At first glance, the minimalist lifestyle has a simple goal, “Own fewer things.”
However, below the surface, minimalism is about something more. It is about re-evaluating our pursuits, our habits, and our motivations.
My family was introduced to minimalism eight years ago and immediately began removing unneeded possessions from every room in our home. As a result, we quickly found more time, more energy, less stress, and more opportunity to focus on things that matter.
As you might imagine, we also experienced financial benefits.
Excess possessions are a drain on our finances. (tweet that)
Here are eight ways minimalism can help put more money in your pocket:
1. Selling Unneeded Clutter. The L.A. Times recently reported the average American home contains 300,000 items. That’s a lot of clutter and that’s a lot of money sitting around—probably more than you realize. Bob Lotich, a personal finance blogger at Seedtime, even reported making more than $2k his first month selling off clutter.
2. Buying Less Stuff. Minimalists routinely spend less on retail purchases than their consumeristic peers—this should come as no surprise. What is surprising is how easy that transformation occurs for some people. Once a person experiences the freedom of owning less, they routinely become more and more attracted to living with less. At that point, the grip that consumerism holds on their checkbook begins to break.
3. Maintaining Fewer Belongings. Too often, when we purchase an item, we only look at the sticker price. But this is rarely the full cost. Our purchases always cost more in the long run. They also require ongoing energy and focus. And because everything eventually fades, breaks, or becomes obsolete, many of our existing possessions often require additional financial investment. This can clearly be seen in large items (houses, cars, appliances). Small fixes and maintenance costs also tend to add up.
4. Storing Fewer Possessions. The structures we build, buy and rent to store our ever-increasing number of possessions is quite unbelievable. Our houses have tripled in size over the last 50 years, off-site storage is the fastest growing segment of commercial real estate, and only 33% of Americans can park both cars in their two-car garage. Those who choose to live a minimalist life return all that added expense of storing possessions back into their pocket. Just imagine how different your finances might look if you lived in a smaller home.
5. Taking Tax Deductions from Donations. As people begin to experience the benefits of owning less, they are drawn to remove even more clutter from their home. This almost always results in more possessions being minimized than can be sold. But even in this case, the financial gain remains as the IRS provides opportunity for taxpayers to deduct the fair market value of donated clothing, household goods, used furniture, shoes, books and so forth.
6. Experiencing Improved Emotional and Physical Health. Every possession adds increased anxiety into our lives. Recently, the New York Times referred to our generation as the most stressed, tired, and rushed generation of all-time. Many of the statistics cited in the article can be traced back to the fact that our generation simply owns more physical possessions than any generation in history. Minimalism brings greater emotional health to our lives. Emotional health brings physical health. And both are among the greatest investments we can possibly make.
7. Finding Increased Intentionality in Spending. Minimalism brings greater intentionality in all areas of life. It begins by forcing us to evaluate our possessions—why we own what we own. But often times, the principle of keeping “only the best” extends to other areas of life too: schedules, relationships, health and habits. Once we begin to practice healthier habits in other areas of life, wiser decisions are easier to implement in our spending as well.
8. Freeing Up Time for Extra Income. One of the greatest benefits of minimalism is the amount of time that is returned to our lives. When we have less to clean, organize, maintain, and repair, we have more time for other pursuits. Whether you are working hard to reduce debt, build up a savings account, or fund an early retirement, minimalism allows you the opportunity to direct that free time towards extra income—if that’s how you choose to use it.
Maya Angelou once said, “We need much less than we think we need.” This truth lies at the heart of minimalism. And it may be an important realization to maximize your pocketbook as well.
I agree with all of your points. For me the greatest benefits result when I subconsciously resist buying unnecessary items. Also when I decide to repair or mend an item and not replace it with a new one.
Tony W this is so true! Right now our dryer is in pieces because we are repairing it ourselves. In our (UNCOMFORTABLE) maximalist days we would have ordered a new one online and had the delivery guys haul this broken one to who-knows-where. It’ll take probably another day to get it back together and in place, but I have to admit it’s kind of fun, actually, not having a dryer and hanging our clothes to dry . . . something so . . . SIMPLE and purposeful about that.
I agree with the tips. Although it sounds trivial one of my main questions to myself when clothes shopping is “If this item was in a cheap supermarket would you still want it”. That way I can differentiate whether I actually want the piece or whether I am just wanting it because of the brand name.
http://www.flareaforte.com
I’ve seen the financial benefits from almost all your points. Especially sneaky is the cost of storage space. Not just in paid space but larger homes, making sure people have a garage or big enough closets. We thought about moving when he had our 5th child, but to spend an extra $100,000 just to have more space for things we hardly ever use, in the end, seemed crazy. So we just sold or donated a few hundred items and took a year off instead.
I left a <1000 square foot 1949 cottage with established landscaping when I married and am in a 4 story, 4000 sq. ft. builder's McMansion and struggling to establish a pleasant (and I do not mean mono-culture grass, magazine perfect) yard. I love love loved my simple hardwood floor, plaster walled (with lotsa cracks) house but this house was my husband's dream. Compromise…
Hi, Joshua. Happy Easter! :)
I’m so glad to be on-board with minimalism.
I know a family living in a “McMansion” as described above. Life is a big struggle for them…trying to maintain the house and always falling behind. It has the potential to be a beautiful, serene home…but it is so filled with clutter and unfinished projects. The house is rather dirty too—it’s hard to clean an enormous house. The homeowner told me one day that she can never catch up. I knew her specific challenge and offered to help her “clean up and clear out”. She never took me up on my offer. Truth is, they are not on-board with a minimalist lifestyle…and to each their own. ; )
I have definitely seen the benefits of minimalism. When I went freelance five years ago, I became a minimalist. This helped me cut costs so I wouldn’t need as much income when I started. Even now my family keeps these minimalist ways and we use the extra income to travel more!
The big one that makes the most difference in my life is not having to maintain stuff. When something breaks you feel the urge to replace it. Instead we try to go without for a week, then see what happens.
Wonderful tips,
Chris
I so agree that the definition of Minimalism is so much more than owning fewer things. For me, it involves thinking through all the decisions I make, and then making them thoughtfully.
Thinking from a clutter standpoint, a financial standpoint, an environmental standpoint, a time standpoint, an efficiency standpoint, a stewardship standpoint, etc.
This can sometimes seem overwhelming, but it really has started to pay off. I really need to apply it to my daily job now ……
Thanks for the great posts, I have been following you for a long, long time!
– The Tepid Tamale
That’s why I adore hotels. There are only necessary things and a few personal things we carry in our luggage
Thanks a lot Joshua for your valuable tips based on your own experience. This was really helpful.
Have a good day????.
Regards,
Joseph Anthony
I think so often the things we keep are aspirational. “For when we have a party, for when we go to an event, for when we take a trip” And we never actually do those things so we don’t need the stuff that doing those things requires.
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Francine Jay, Miss Minimalist, calls these our fantasy selves…the super eBay seller, avid scuba diver, charming socialite and entertainer…they all come with a host of gear and things to store. This was a big hurdle for my husband and I over our last 8 years of minimalizing, and always the first type of thing that creeps back in. Also one of the first things we talk about to our friends who are contemplating a more simple life. They should be the first things to go in my opinion.
I like the concept but am struggling with getting started. I am already down to a 780 sq ft condo (formerly an apt). Am on a waiting list for a senior housing apt that is even smaller. I will sell this when I am secured with the next move. My attachments to small stuff is based on my being 76. How does one let go of the “things the kids gave me- the books etc from trips- the many photo albums- the doll collections? Recently I reviewed my $$$ budget. Right now my dish washer is not working well..do I spend $$$ getting it repaired or do I learn how to live without it as the Senior Apt will not have one!!! Not your typical questions on this forum I think.
I went without a dishwasher for probably over a year and it was a struggle for me. I have very sensitive skin and my hands were a wreck. I can’t stand wearing gloves when hand-washing dishes, so that wasn’t an option. I finally gave in right before Christmas and got a new dishwasher and I am loving it. I still do hand wash some things but I use the dishwasher at least once a day, sometimes twice and it’s a time saver for me, as well as a hand saver. Good luck with your next move.
Barbara, thank you so much for sharing your perspective and questions! If you try going without a dishwasher now, it will let you know whether you are happy with that option in the smaller place. Maybe you will find you enjoy getting dishes done as you go or will decide you’ll need a portable one in the new place.
I have some ideas-you might keep your favorite thing each child gave you & take pictures of the other special things. As for the scrapbooks, that is tricky! I’ve switched to digital scrapbooks that are smaller and take up less space. Could you condense the scrapbooks into one with just the highlights? Scan the rest to store digitally. Do you love the doll collection or will just one or a set of 3 on a shelf or a framed picture of them all make you smile as much? Keep what brings you joy-the best of the best-and take pics if that’s still too much. I’ve been learning this concept as we’ve whittled my children’s toys down to the best quality favorites…it’s still too much. Now we need to whittle down to what they REALLY do play with and truly enjoy, not just for 5 minutes.
Keep one or two favorite dolls…and I bet you know a few young girls who would LOVE to come over and pick one to take home. Also those dolls could be donated to a children’s hospital or a shelter. Let your family know that you will be downsizing BIG TIME— ask them to come over and take what they want before you move. You will be glad they did! :)
Being a minimalist is a tough task as you have to control your obsessions and habits. But yes, it has several benefits. Nice content piece.
I used to be a ‘better keep this, I might need it someday’ person. I had more crafting supplies, “special occasion” clothes, household items than I could ever use. I have an annual yard sale with a few people now. I sell whatever I can and the rest is given to a Church rummage sale–I do not put anything back in my house. Sometimes I feel that stuff clones itself as I can’t believe what I still have to get rid of, but I am working on it and hopefully will reach a point where I am clutter free.
Your weekly articles are excellent motivators along with other peoples’ comments. Please continue to inspire us. thanks, MM
I don’t know that the tax deduction argument is particularly viable these days. A year and a half ago, my husband and I gave TONS of stuff to charity, looking forward to the tax deduction. Not so. The standard deduction was still our better choice.
Since I became a minimalist (mostly because I followed this website and your facebook page for so long) I have sold most of my belongings, moved across the country, and now visited another country for vacation.
After I stopped spending so much money maintaining and protecting my belongings.. suddenly I could afford to move out of the state I hated and into one I love, and to travel to other countries like I’d always dreamed.
Your blog is inspiring!!
This is just the crux of what Kelly C is trying to say in his short video.
Great article, it’s so true
http://spottymoz.com/stuff/#more-155
OMG Yes! Now when I go to the store and I see something cute I have ZERO urge to buy it. Immediately I think what I have to trade to buy that item – space, OMG I LOVE MY SPACE, and money, I LOVE THAT TOO, adventure etc… And it annoys me so I don’t buy it!
All great examples of how minimalism helps our pocketbook. I’m amazed how I used to convince myself I needed something on-line. But the desire for the item soon passes and a few days later I wondered why I wanted it.
This is so true in my own life. #1 (more $) I have funded a family trip by selling unnecessary possessions. #2 (buying less). I now have an aversion to purchasing things. I think long and hard before I fork over my cash. #6 (health) I have a chronic illness & have noticed a difference in my pain levels since simplifying my stuff/schedule. #8 (more time for income) Freeing up more time in my day has allowed me to start a blog.
This is great advice I have recently been forced to do some of these points after separating and I don’t look make great to declutter not buy things we don’t need.miney it tight so it is a no brainier now
Question is do I need it or do I just want it to be like the others lol
http://www.pandorasdiary.com.au
This site is awesome! I never knew what a minimalist was until I recently watched a documentary called: The Minimalist. After that doco, my wife and I started selling off stuff we just never used. We revamped our wardrobe and gave the rest to those in need. I must say, life does feel more ‘easier’ and ‘light’ when you start to de-clutter :)
Awesome site and thanks for the reminders.
All excellent tips. I’ve been giving away my things rather than selling them. It frustrates my mother because she thinks of all the money I could be getting. I’ve tried and failed to explain that what I get out of giving the things away, usually to friends who greatly appreciate them and aren’t interested in being minimalists themselves, is far greater than the couple of hundred or maybe a thousand dollars I’d make. So much less effort. People pay the cost of shipping and receive a box of stuff they want. Simple and win/win. Thanks as always for a great article!
Please tell me how I can take the course again without paying the $89. I started last year, but never completed it. Thanks so much.