Minimalist Finance: Save More by Living with Less

Table of Contents

• Rise of Minimalist Finance in India
• Understanding the Meaning of Minimalism
• Minimalist Steps for Bigger Savings
  • Take a Closer Look at Your Expenses
  • Clear Out the Clutter
  • Replace, Don’t Accumulate
  • Choose Better, Not More
  • Streamline Your Eating Habits
  • Manage Your Subscriptions Smartly
  • Opt for Simple, Affordable Experiences
  • Automate Your Savings
• Breaking the Myth: Minimalism & Living with Less

Rise of Minimalist Finance in India

Every day, we are bombarded with advertisements on nearly all digital platforms to buy one thing or another, even if there is no inherent need. Impulse buying is not only draining us financially but also emotionally, with the load of managing countless expenses, including EMIs and subscriptions. FOMO (Fear of Missing Out) is driving consumerism that may offer short-term gratification but triggers the cycle of overspending. How far are you willing to go to buy the latest iPhone, car, or watch just to ‘keep up’?

All this has started to change with minimalist finance, which emphasizes value and simplicity in spending to reduce stress and eliminate financial clutter. The young workforce in metros and Tier-2 cities is following minimalism to escape from the consumption culture. Thrift culture is also booming on social media, especially among Gen Z, to promote a unique and affordable style. Post-pandemic, people have realized the importance of financial security, and minimalist finance is one way to achieve financial clarity and freedom.

Understanding the Meaning of Minimalism

Minimalism simply means focusing on what’s necessary and adding value to our lives. A quality over quantity approach defines this trend. Just ask yourself- Do I really need that trendy sneaker supposedly on ‘grand sale’? Would you really use that fancy coffee machine trending on social media? If the answer is no, then you already know whether or not to buy these items.

Confusing it with ‘being cheap’ is another misconception among people. Minimalism does not mean selecting the cheapest thing on the menu, but what offers you the most value. Here's a riddle for you- what is more valuable: buying Rs. 2000 okayish-quality shoes every year in the name of saving money or choosing a Rs. 5000 high-quality shoe that can last 5 years? Welcome to Minimalist Finance!

Minimalist Steps for Bigger Savings

Bigger is not always better, unless its your savings. Here are practical ways to save more with minimalism:

Take a Closer Look at Your Expenses

Your spending habits can easily make or break your bank. So, keep track of cash outflows to understand where your money goes. One simple hack is to note down every expense for a month- even that Rs. 100 coffee. Find those spending leaks on non-essential items that can easily be stopped. Cut down on small, repeated expenses that drain your savings. Careful budgeting helps in managing your expenses while keeping in line with your financial goals.

Clear Out the Clutter

Follow the mantra: ‘If it no longer serves you, get rid of it.’ We all have things in our cabinets that we may use ‘just in case’. Yes, those old clothes, phones, and gadgets that you will never use again. Decluttering will not only save you space but can also make you money. Take Anjali, for instance, who sold 15 dresses, just gathering dust in her wardrobe, and earned Rs. 10,000. She used this money to start an emergency fund as a financial safety net.

Replace, Don’t Accumulate

The rule is simple: Want a new phone? Sell off the old one. Also, if the phone is in good working condition, there’s probably no need for upgrading. Balance your purchases by letting go of something old before buying something new. It prevents clutter and impulse buying as you think rationally whenever you want to make a new purchase.

Choose Better, Not More

As mentioned before, quality over quantity is the way to go. Minimalism is not just about owning less but also about having what really serves you. Why go for substandard items just to replace them after a few months? It is a vicious cycle that only creates clutter and drains your wallet. Quality products may charge a high upfront cost, but will save you more money in the long run.

Streamline Your Eating Habits

Spending a lot on meals is just another way of eating your savings, pun intended. With fancy cafes and instant food delivery, it has become quite hard to control our cravings. Avoid frequent outings for food by planning in advance for your daily meals. Have late-night cravings? Just cook at home and manage portions reasonably to avoid waste. Homemade meals will not only save more money but also help maintain a healthy lifestyle.

Manage Your Subscriptions Smartly

Whether it’s an OTT service, gym membership, or music app, everything adds up. Keep a tab on every recurring payment. If there’s a service you no longer require, cancel it immediately. Make sure you are not paying for something that you do not need or use. Ask yourself if you really need multiple OTT memberships. Instead of these monthly payments, you can invest in a Systematic Investment Plan (SIP).

Opt for Simple, Affordable Experiences

Entertainment does not always have to come with a hefty price tag. Look out for alternatives to expensive experiences, including shopping trips, costly dinners, and weekend movies. You can consider community events like cultural programs, free workshops, and local festivals. Instead of e-books, visit city libraries or swap books with friends. The truth is, the excitement of new material goods does not last long. Remember, the best memories come from forming social connections and experiences, which are often free of cost.

Automate Your Savings

Financial discipline is the first thing to nurture when it comes to savings. More often than not, we spend recklessly to end up with no savings at the end of the month. Save first, spend later. Establish a system where savings are automatically accumulated even before you plan to spend your income. Set up a SIP to invest a set amount automatically monthly. If you are a ‘new-to-credit' (NTC) borrower, you can start building credit through responsible borrowing and timely repayments.

Breaking the Myth: Minimalism & Living with Less

What most people do not understand is that minimalism does not mean living like a monk without material possessions or comfort. Living with less is often associated with depriving yourself of worldly joy. But here’s the truth- minimalism is not about owning nothing; it promotes owning only those things that matter. You should invest in joyful experiences and goods that actually add value to your life. Rather than restriction, minimalism offers you the flexibility to keep only purposeful things with you.

No one is asking you to be cheap, but spending wisely is encouraged. There’s no need to sacrifice your happiness. If you want that new PlayStation, get it, but ensure you spend quality time on it. Try cutting down on other unnecessary expenses to balance your budget. There is another misconception that minimalism is only for the elite class. No, it benefits all social classes. Minimalist finance is even more necessary for the middle-class, who are known to spend more on a lifestyle that is beyond their means.  

To conclude, minimalism is not just about owning less. Do not confuse it with scarcity. What it promotes is intentional spending and abundance. So, the next time you come across an ad for the latest smartphone, take some time and ask yourself ‘Is it worth it?’