{"id":6203,"date":"2009-10-09T05:00:08","date_gmt":"2009-10-09T12:00:08","guid":{"rendered":"http:\/\/getrichslowly.org\/blog\/?p=6203"},"modified":"2019-10-02T19:04:51","modified_gmt":"2019-10-03T02:04:51","slug":"minimalist-money-6-steps-to-simplify-your-financial-life","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/minimalist-money-6-steps-to-simplify-your-financial-life\/","title":{"rendered":"Minimalist money: 6 steps to simplify your financial life"},"content":{"rendered":"

\"\"Finances are one of the most complicated things in many people’s lives … and yet, they don’t have to be. With a little effort, you can simplify your financial life and end the money headaches most people face.<\/p>\n

I consider myself a minimalist. As such, I shy from all kinds of complexities. I look for ways to simplify. I like worry-free solutions \u2014 I like to forget about it, so I can focus on things that are more important to me.<\/p>\n

Here’s how I simplified my financial life:<\/p>\n

<\/span>Step One: I Opted Out of Consumerism.<\/span><\/h2>\n

This is the first and most important step. If you’re a long-time GRS reader, you already know all about this \u2014 if you’re new, dig through the GRS archives for some great stuff about frugality<\/a> and the consumerist mindset<\/a>.<\/p>\n

Too often, we get into the mindset of buying, of attaining more, of shopping for pleasure or stress relief or finding self-worth, of impulse buys. This is a mindset that comes from years of exposure to advertising, and it’s hard to stop. Start by becoming more conscious of it, and by telling yourself that you will no longer find pleasure in buying and having material things.<\/p>\n

When you find yourself with an urge to buy, stop and breathe. Put the item on a 30-day list<\/a> and don’t buy it until 30 days after you put it on the list. Usually the impulse will dissipate. Give thought to every purchase and ask yourself, “Is this really<\/i> necessary? Can I live without it?” Try to live only with what’s necessary and get happiness from doing things \u2014 from spending time with people, from creating \u2014 rather than from material goods and spending.<\/p>\n

<\/span>Step Two: I Saved Up an Emergency Fund<\/span><\/h2>\n

Before you can find financial peace of mind, you need an emergency fund<\/a>, otherwise you’re always going to be living on the edge, from paycheck to paycheck. Every unexpected expense that comes up will derail everything I recommend below. This point has been driven home many times on this site, so I won’t belabor it. But start here: Save up at least $500 by putting $50-100 per paycheck towards this fund, and gradually build up to $1000 or more.<\/p>\n

To do this, cut out unnecessary expenses. Look closely at your spending, including regular payments you might have forgotten about, and see what can be cut. There’s always something:<\/p>\n