In part one of this multi-part blog series, we looked at the concept of financial minimalism and why it’s often beneficial for many people. Financial minimalism involves a focus on reducing unnecessary expenses and eliminating debt to bring more control over your personal finances, and there are several major tenets or approaches within it that are worth considering.

At 1st Choice Money Center, we’re happy to offer a wide range of short-term loan products for those looking to achieve any financial goal around Utah or Idaho, including signature loans, personal loans and several other alternatives to predatory payday loans (which we do not offer). Today’s part two of our series, and on into subsequent entries, will dig into some various approaches you might consider as you look at achieve your version of financial minimalism.

Monthly Budgeting

It may sound overly simplistic to some, but one of the chief tenets of financial minimalism is simply budgeting. It’s easy to get caught up in impulse purchases and creating a lifestyle that you can’t support, but it’s important to take the time to create a monthly or even weekly budget.

This will give you insight into where your money is going each month and provide an opportunity to cut back on those expenses that are not necessary for living and saving. It will also help you monitor your spending, so that it’s easier to catch yourself when making unplanned purchases.

Mindfulness of Subscriptions

One form of expense that can add up quickly for some people are recurring payments for subscriptions. Whether it’s streaming services, magazines, online tools or anything else that has an ongoing cost, it’s important to be mindful of these expenses and determine if they are actually adding value to your life.

By taking a look at these costs on a regular basis (perhaps quarterly) you can make sure that any subscriptions you have are actually worth keeping around and not just draining your budget.

Eating Out is Fine – Just Not All the Time

Many of us really enjoy going out to eat, and there’s nothing wrong with that. The key is to be mindful of how often you are eating out as it can quickly add up in cost over time. Try to limit your trips out for meals to special occasions or occasional treats instead of making it a regular habit.

Limit Impulse Spending

If you know that impulse spending is an issue for you, and you have habits like impulsive shopping trips, you may want to consider different tactics for curbing that behavior.

One tactic could include giving yourself a set amount of money (say $50) per month for discretionary spending. This will allow you to treat yourself without breaking the bank and still stay on track with your financial goals.

At 1st Choice Money Center, we want to help you achieve your financial goals, whether it’s through our signature loans and other loan products or by giving insight into better money management. We hope these ideas can help you on your journey towards financial minimalism; stay tuned for the next installment of our series!