Introduction:

As I sit down to write this, I can’t help but feel a profound sense of accomplishment and liberation. After a long and challenging journey, I can finally declare, “I’m debt-free.” But before we dive into the world of minimalism and personal finance, let’s rewind six years, back to a time when I was a different person entirely.

The Old Me:

Six years ago, I was that guy willing to drop $700 on a pair of sneakers just to look cool. I didn’t hesitate to empty my bank account for these fleeting moments of perceived “coolness.” The obsession with sneakers didn’t end with one pair; I had a mountain of them. But two years later, I made a life-altering decision that would lead me down a path filled with financial uncertainty.

University and Debt:

I enrolled in a university, lost and unsure of my direction, studying a course I knew I’d never use. This decision left me in debt, just like countless other students around the world. I had to borrow money from the bank, and in doing so, I tied myself to a job I despised because it was the only way to pay off my mounting debt.

Discovering Minimalism:

This is where minimalism entered my life as a savior. I embraced minimalism not only to be frugal but also to regain control of my life and my finances. Minimalism became the tool that would keep me on track toward my goals.

Letting Go of Fashion:

One of the first significant expenses I decided to cut down on was fashion. Letting go of my obsession with fashion and sneakers was akin to shedding a heavy burden. I used to believe that looking good required buying expensive designer pieces and flaunting them. I was addicted to the idea of standing out, and it had cost me dearly.

Recognizing Impulsive Purchases:

I realized that conspicuous consumption was a never-ending pitfall I had dug for myself. We all have our weak spots when it comes to overspending, whether it’s on daily coffees, impulse purchases, or items we buy just because they’re on sale.

Combatting Impulsive Buying:

Impulse buying can be a destructive habit. It convinces us to make irrational, damaging purchases. We often justify these purchases by telling ourselves that we need them right now or that the item will be sold out soon. But it’s essential to take a step back and reflect on whether we genuinely need these items or if they are merely impulsive desires.

The Wishlist Strategy:

A great way to curb impulsive purchases is by employing the “Wishlist Strategy.” I’ve dedicated a video to this concept, but in essence, it involves creating a digital wishlist to defer purchases. Waiting and reflecting on whether you truly need an item can help you distinguish between needs and wants.

Managing Expenses:

I’ve made several attempts to manage my expenses over the years, but it wasn’t until recently that I took it seriously. I track every expense daily to ensure I’m aware of where my money is going. It’s a habit that requires consistency. Tracking your expenses allows you to identify areas where you overspend.

The App I Use:

I use the app “Bendy” to track my spending. I input my expenses right after each purchase, and if I forget, I catch up by the end of the day. I avoid procrastination because it’s easy to let this habit slip away.

Avoiding “Death by a Thousand Cuts”:

One month of tracking expenses helps identify what I call “death by a thousand cuts.” These are the seemingly insignificant expenses that, when added together, become substantial. It could be daily coffee runs, mindless online shopping, or hobby-related expenses. Identifying these areas of overspending is crucial to improving your financial health.

Prioritizing Financial Freedom:

One of the key lessons minimalism taught me is the importance of setting priorities. Knowing what’s essential, differentiating between needs and wants, and channeling your money to your top priorities is critical. My priority has been paying off my school loan, and minimalism has helped me stay on track and eliminate unnecessary spending.

The Role of a Budget:

Your budget must align with your priorities. It’s about telling your money where to go instead of wondering where it went. A budget is essential for living within your means and avoiding unnecessary debt. In my case, after years of trying to get rid of debt, I can confidently say it’s a nasty experience I never want to go through again.

Balancing Credit Cards:

While some minimalists advocate using only cash, I’m not against using credit cards, provided you have rules in place. I ensure that I pay the bank on time and never spend more than I can afford. The discipline of staying within a budget is crucial in managing credit card use.

The Importance of an Emergency Fund:

I’ve also built a sufficient emergency fund, equivalent to nine months of living expenses. While six months is typically considered sufficient, my variable income from this channel led me to create a more substantial cushion. I’m at a phase where I’m researching investment opportunities and working towards owning a house with my girlfriend.

Minimalism: A Path to Financial Freedom:

In summary, minimalism might not directly increase your income, but it can help you save more money, control your spending, and direct your resources toward your goals and values. It’s a mindset that encourages you to live intentionally and focus on what truly matters.