Living With Less In These Seven Areas Could Save You Thousands A Year
What if I told you that you could save thousands of dollars a year just by living with less? Got your attention? Consumption is so incredibly easy to do these days, and we often spend mindlessly, not realizing how much it all adds up. I’m in year four of living with less, and let me tell you, the financial benefits have been mind-blowing. On average, many of us could be saving up to $20,000/year just by taking a look at our lifestyle and seeing where we could live with less. Financial stress is devastating to our health and our relationships, so here are some key tips on how minimalism can lead to substantial savings in various aspects of life.
Non-Essential Spending: The average person spends $1,500/month on non-essentials, which is $18,000 a year. One of the fundamental principles of minimalism is to eliminate non-essential spending. By carefully evaluating purchases and distinguishing between wants and needs, individuals can curtail impulsive buying habits. This deliberate approach to spending ensures that money is directed towards essential items and experiences, resulting in significant savings over time as well as more meaningful moments rather than purchasing material stuff.
Housing: Minimalism extends beyond decluttering physical possessions; it also encompasses downsizing living spaces. By opting for smaller, more efficient homes, individuals can reduce housing costs such as rent or mortgage payments, property taxes, maintenance, and utility bills. Embracing a minimalist mindset when it comes to housing not only saves money but also fosters a simpler and more sustainable lifestyle. As a REALTOR® for the last fifteen years, I’ve seen this time and time again! Here’s an example: Downsizing your living space from a 2500sq.ft. home to a 1000sq.ft. property could reduce your housing costs up to 40%!
Gifts: Minimalism encourages a shift away from materialistic gifts towards more meaningful and thoughtful gestures. By prioritizing experiences or homemade presents over expensive items, individuals can save a substantial amount of money throughout the year. Additionally, embracing minimalist gift-giving practices can foster stronger personal connections and reduce the pressure to constantly spend on lavish presents. Even if your love language is gift giving… you could simply start by reusing gift bags or writing hand-made cards! Ex. If your child is invited to ten birthdays, having them create their own cards could save $50 a year!
Food Waste: The average Canadian wastes 140kg of food, or $1,600/year. Adopting a minimalist approach to food consumption helps reduce waste and lower grocery bills. By planning meals, buying only what is necessary, and utilizing leftovers effectively, individuals can avoid food spoilage and save money on unnecessary purchases. Embracing minimalism in the kitchen encourages mindful eating and conscious spending, resulting in financial benefits and reduced environmental impact. This is where I saw the most significant impact and actually developed an e-course called the Kitchen Crasher, where I cover how I saved $5,200 on groceries/year just by living more intentionally and paying close attention to food waste.
Clothing: The concept of a minimalist wardrobe emphasizes quality over quantity. By building a smaller yet stylish wardrobe consisting of versatile, high-quality pieces, individuals can avoid excessive spending on trendy, short-lived fashion items. Owning fewer clothes that are well-maintained and cherished not only saves money but also promotes a clutter-free lifestyle and a more sustainable approach to fashion. The average person spends $1,866/year on clothes, so even if you reduced it by a quarter, you could be saving up to $467/year! We only wear 20% of our clothes anyway… so why not give this a try!
Maintenance and Repair: The more you own, the more things that will break down and need repair and regular maintenance, which requires your time, money, and energy.
Car: Definitely a status symbol in our culture, so I know this one might sting a bit. But if you want to get ahead, there is no shame in driving an older vehicle that doesn’t have that steep monthly car payment. If it’s in good shape, you regularly maintain it, and it gets you from Point A to Point B… do you really need to spend a small fortune on a depreciating asset? Also, think about it from this perspective… what could you be doing with that monthly car payment instead? Investing, paying off debt, saving for a down payment, travel fund?
Beyond the financial benefits, minimalism can also heal one's relationship with money by shifting the focus from material possessions to personal growth and experiences. Removing the clutter and debt associated with excessive consumption creates space for a healthier mindset toward money management and long-term financial stability.
Decluttering and living with less allows you to peel back that surface layer, freeing up your capacity to really tackle the big things that are holding you back with your money (like guilt, how you define what it really means to have a prosperous life), and finally having the opportunity to be on the offensive and improve your relationship with money. Remember, the journey towards minimalism is personal and adaptable, and even small steps can lead to significant positive changes in one's financial well-being. If you would like to find out more about The Kitchen Crasher or any other E-Courses, visit www.athomewithjess.ca.
