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How to Save Money Effectively By Having a Minimalist Lifestyle

How to Save Money Effectively By Having a Minimalist Lifestyle

It seems that these days, everyone is talking about a minimalist lifestyle. From tiny homes, to possessing less stuff, to even minimizing the dependency on money, a minimalist lifestyle is very attractive to folks looking for a change. But how about saving money? It seems many assume that if you go minimalist, you automatically save tons of money. The reality is, the savings and budgeting changes. Today, I want to share with you how to save money as a minimalist![1]

Budgeting Until You Cannot Budget Anymore

Budgeting is key to saving money, no matter what kind of lifestyle you wish to have! Planning out your needs and having a clear picture in your mind about the road to savings is going to be your best friend. It’s a typical budget, just like anyone else. A focus on meeting your needs:

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  • travel expenses (gas, cab, bus)
  • rent/mortgage
  • utilities
  • food
  • clothing
  • healthcare
  • Toiletries & body care
  • Entertainment
  • Savings

Minimalist attitude is that you don’t use more than what you need. This budget can also help you figure out how to minimize your spending and making your savings bigger.

If you decide to ride a bike for transportation then you avoid spending on anything other than bicycle and bicycle maintenance. If your rent or mortgage is a big chunk of your money, look to a tiny house! Which means getting rid of a lot of “stuff” since you will have limited room (hello yard sale!). Even food can be minimized by growing your herbs and vegetables, rather than purchasing them in store.

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This is also where you can see if your goals for savings are realistic. If not, adjust them. You can change how you spend in other categories or adjust your savings to make it match what your real spending picture is.

Stick To Your Budget, or It’s Pointless!

How many of us have created a budget and then not looked at it again? Pretty much everyone! It’s not-so-easy to create the budget and if we are feeling overwhelmed by it, its easy to not look at it again. The reality is, follow it! Set aside 15 min each week to look at it and make sure you are on target. Yes, occasionally you will make a mistake. We are human! But the more we look at it, the less likely you will continue to do that. It can be very empowering after a bit to know you are in control of your money situation!

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Buy What Lasts!

Some items are a short term good (food, some clothing, etc) and that is okay. But other things are meant to last a long time. Focus on making sure you are purchasing items that will last you a long time! Sometimes this means you spend a little more than what you would expect. The idea is not to avoid spending money and being frugal, but rather looking at the larger picture. If you decide to fill your living room with plastic lawn furniture just because the price tag is cheaper, you will spend more replacing it over the years. Investing in solid furniture, that fits your space, and you will spend less because you won’t have to replace it. Quality vs price tag!

Buy What You Need, Not What You Desire

It’s easy to get caught up in fulfilling your desires for the latest phone or latest car. While a car is a need for some of us, and a phone is a necessity for everyone, it doesn’t have to be the highest priced and newest gadget. Marketers prey on folks desires, even leading us down the path of what they want us to desire. But the minimalist attitude is to focus on need rather than what we want.

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Let’s also acknowledge that what we own does not define who we are! While a style of clothing can reflect parts of our self, it is us who defines ourselves and not the style of clothing.

Savings for the minimalist, and just about everyone else, is an attainable goal. So many of us are accustomed to not saving and living hand to mouth that it can be an overwhelming endeavor. If you are living the minimalist lifestyle and are already struggling with savings, review that budget. Find the problem areas and figure out how to manage it.

Reference

[1]Simplicity Relished: 5 Minimalist Secrets to Saving Money

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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