There are a few concepts or themes that some people try to emulate when it comes to their financial lives, and one great and popular example here is known as financial minimalism. Combining the concept of minimalism with financial responsibility in a few key ways, this is a great approach for those looking to stay conservative with their money and avoid major debts or issues – but how exactly does it work?

At 1st Choice Money Center, we’re proud to offer clients around Utah and Idaho a wide variety of financial boosts in the form of short-term loans like title loans, personal loans and more. In this multi-part blog series, we’ll begin by going over exactly what financial minimalism is and what its key benefits are, then dig into the numerous tenets that it encompasses and some simple ways to achieve it within your financial life.

Defining Financial Minimalism

Those who are familiar with the broader concept of minimalism in general likely have some idea of what financial minimalism is about, but for those that don’t, essentially it’s a way of living financially that focuses on reducing your expenses and eliminating debt in order to have more control over your finances. This doesn’t necessarily mean becoming frugal or going without – rather, the key tenets of this approach are all about avoiding the need to take out unnecessary loans or other funds.

A key emphasis within financial minimalism is intentionality in the way your money is used. You should never make a purchase that you don’t need or truly want, and should carefully consider every purchase before committing. This way, the money you do spend is more likely to go towards something valuable and worthwhile, rather than frivolously wasted on unnecessary items.

Examples of Things Financial Minimalists Don’t Do

Here are a few practical examples of behaviors a financial minimalist will avoid:

• Spending aimlessly: Financial minimalism entails taking a conscious approach to how you spend your money.

• Living above means: Financial minimalists strive to avoid living beyond their means, and instead save for big purchases.

• Taking out unnecessary loans: Since interest rates on loans can be high, financial minimalists try to avoid taking them out unless necessary.

Benefits of Adopting Financial Minimalism

Living according to the tenets of financial minimalism can help in a number of ways, including:

• Paying off debt faster: Some debt is often unavoidable, but by avoiding unnecessary loans or purchases, it can be easier to pay off existing debt.

• Building savings: Allocating money towards a savings account is much easier when not worrying about frivolous expenses.

• Being prepared for emergency situations: Since financial minimalism focuses on being fiscally responsible, it’s easy to increase the chances of having enough funds in the case of an emergency.

These are just a few of the key benefits that come with adopting financial minimalism, and in our next posts, we’ll discuss additional tips on how to achieve it within your own life. Stay tuned!

With 1st Choice Money Center’s help, you can be sure to stay financially responsible and healthy this year through our selection of short-term loan products for clients around Utah and Idaho. Contact us today to learn more!