6 Ways Minimalism Helps with My Finance & Debt | Financial Minimalist

finally i'm debt free and i have to say it was a long ride but before i start to talk about anything about minimalism let me take you back to six years ago before everything started i was that kid who was willing to spend 700 on his sneakers to make himself look cool even if it meant wiping out his bank account ridiculous and let me tell you one was never enough i had a mountain of them and fast forward to two years later i made the worst decision to go to a university when i'm lost in life study a course which i would never use and put myself in a difficult situation in debt like many students it was difficult because i had to borrow it from the bank and because of that i tied myself to a job i hate we all know that's the only way i can pay off the heavy burden on my back to be honest i didn't let that affect what i planned to achieve i took the leap of faith and decided to do what i want to build that's the story for another time but because of this reason my income was literally zero and the only two that helped me get through this period was none other than minimalism some of you know that i started minimalism because i want to be frugal and indeed it became a tool that keeps me on track towards my goal that i want to achieve and in order for me to do that i need to cut down on redundant expenses and one huge chunk of it for me is fashion letting go of fashion is like letting go of a heavy burden i was strapped to it and i couldn't bear to let it go not all of you are into fashion and i'm not saying that fashion is inherently wrong but it's how i see fashion that is detrimental to me mentally and even financially i always wanted to look good not just that i wanted to look better and the only way i can dress better is by buying expensive wrap pieces for me to stand out in the crowd it took me years and a heavy school loan to realize that these conspicuous consumptions are an endless pit hole i dug for myself our story might be different but living in a world where people live paycheck to paycheck and putting ourselves in debt just own something we cannot afford we can always identify things we overspend on i don't need to waste that hard-earned money to impress people i don't care about this realization doesn't only work on clothes and fashion it also alters my spending pattern if there's something i really desire i'll question myself is that truly for my own liking or is it to impress artists cut down on the impulsive purchase easy for me to say but the truth is every now and then i still have to impose to buy things that artists tell me that i must have it i mean it was my impulse that made the decision to wipe out my bank account just own expensive sneakers and that's the scary part of impulsive purchase it has the ability to make us convince ourselves to buy something irrational even if it's damaging to our finances no matter what we want we can always justify that we need it right now it might be sold out soon if we don't make a move now that's the reason why we spend so much money during sale period to buy things that we don't need because we are afraid that we are missing out on saving money however we need to be aware that we are constantly missing out on things it's more important for us to take the time and reflect if we need to spend that amount of money or could there be better opportunities we can utilize this money for my favorite way to cut impulsive purchase is to wish this strategy i've dedicated a video slowly talking about this i've also prepared a digital wishlist on notion and you can find a link in the description which you can use to gain whatever impulse or desire you are currently experiencing that's a great way for you to wait for it and reflect if it's a need or just another impulse managing expenses i've started managing my expenses long ago but it's a habit that didn't stick once i miss a day of documenting my expenditure like all habits i kind of lose the momentum and slowly the habit would just fall off very recently i've been treating it seriously i'm tracking every expenses that went through i can't stress this enough you can't manage what can't be measured and because of that it's essential for us to identify at which area of our life we overspend on and remove excessive burden we carry on our journey the app i'm using is bendy i use this to keep track of all my spendings i'll key them into my phone right after a purchase if i remember it but if i don't i'll still keep it updated by the end of the day i try not to drag or be lazy because that's when a habit tends to fall off and that happened a few times avoid death by a thousand cards after that one month of managing our expenses that's when we can identify the thousand cards there are expenses that might seem insignificant to you at a glance but if you look closely there are thousands of them that are causing us a slow death most of them look minuscule when it comes to pricing hiding behind places where you might not be aware of whether it is on expensive coffee you drink every day or making purchases just because the item is on sale for me these cards were random purchases on things that i don't need i bought them because they were cheap and it works especially well when it comes to hobby before minimalism i wanted to collect watches i was so tempted by the slightly affordable watches that are available but every hobbyist will know this there's no such thing as enough it will be an endless collection if we don't limit ourselves there will always be another one but lucky me this card from watches didn't last long until i was introduced to minimalism so not much damage was done to my bank account or my wallet in order to increase savings first cut down on your expenses that's way more achievable as compared to having a race budgeting is the best way for us to spend less than what we earn and more importantly spend within your means you probably hear and see this almost on all financial websites or books that is bad for you i live by it as well i mean after all these years of trying to get rid of one it's a nasty experience which i wouldn't want to go through it again not to mention the interest that comes with it and the only loan i'll willingly accept is a house loan some minimalists will recommend using only cash despite that i'm not allergic to the use of credit cards because i have rules that i abide to first i always pay the bank on time additional fees and interest are inevitable if we are mindful of it second i'll never spend more than what i can afford i'll put myself in debt just own something i know some research has shown that the use of credit cards encourages us to spend more since the use of this plastic doesn't make us feel the pain of losing money but i do feel the pain whenever i have to spend even with my card and with the help of keeping my expenses in check i think i have a good control over the use of my credit cards however i have to thank budgeting for that because that's the ceiling and limitation i give myself every month and it's a month for me to spend comfortably without depriving myself i can enjoy my life but yet keeping redundant wants out of my way to prevent living paycheck to paycheck our budget has to align with our priority and john maxwell has a quote which obviously i got it from dave ramsey a budget is telling your money where to go instead of wondering where it went and i'll add be the master of money not the other way around knowing my priority is another thing i realize from minimalism and to me is probably the soul of minimalism knowing what's essential needs and wants that's crucial at this point because it allows me to channel my money to places where i can use it effectively for the past few years there's nothing more important than paying off my school loan that has become my main priority and with that in mind it keeps me on track and allows me to eliminate redundant purchase and have extreme focus on getting rid of the debt your priority might be different it could be to own a beautiful house or to support your loved ones it comes in different form but what we can agree on is by having a priority that allows us to remove distractions that come in between our goals and somehow acts as a purpose that pushes us forward so far i've also built a sufficient amount of emergency fund which is 9 months of my living expenses to some it might be overkill i have to agree 6 months is more than enough but since my income for this channel fluctuates regularly so it's much safer if i have a higher emergency fund i'm still at a phase where i need more research on how i can better use my money in different opportunities like investment and i'm also working on owning a house with my girlfriend but that would take some time for that minimalism might not directly increase our income but it helps us to save more money and control where our money should go that aligns with our goals and values how minimalism helps you with your finance let me know down in the comment section so you can learn from one another if you are new to this channel i have other videos on minimalism and self-development which you can check it out after this appreciate if you can help me with the like button because that can help a lot with this channel's algorithm and follow me on my instagram i'll keep you guys updated and if you want to support this channel monetarily i do have a patreon page where i post the extended version of this video meanwhile thanks for watching this stay safe and positive guys and i'll see you guys again next week

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