One of the biggest blessings of minimalism is that it helped me spend less, way less.

By spending less, I could afford to work less, which in turn helped me slow down all the other aspects of my life.

By abstaining from purchasing unnecessary clothes, appliances, trinkets, and decorations, and embracing a bare minimum approach, my spending habits have undergone a radical transformation.

Becoming a minimalist taught me a lot about money management. In this piece, I will share some of my key findings, but first: Do you know where piggy banks get their name from ?

Spoiler: The name has little to do with pigs. You’ll find the answer(s) in the closing comments of this piece. Hats off if you already knew !

Let’s get back to my money management hacks as a minimalist:

1. Budgeting: An obvious one for most, it was definitely not as obvious for me a few years back. In fact, one of the first and most important things I learned after becoming a minimalist was how to create a budget to track my income and expenses. Budgeting helps me stick to a determined budget to avoid excess, it’s key.
2. Differentiate between needs and wants: To say you NEED something insinuates that you’re incomplete without it. Most of the stuff we buy are WANTS, not NEEDS. Minimalism taught me how to distinguish between essential expenses (actual needs) and discretionary ones. It’s important to learn how to evaluate whether you truly need or can afford the things you want.
3. Use energy-efficient appliances: Yup, your appliances cost money, and the more energy-efficient, the better. Now, you don’t have to throw out your current appliances just yet, but it’s worth keeping in mind if you’re in the market for some new tools. For instance, ENERGY STAR-certified appliances can save you up to 30% on energy costs.
4. Delay gratification: Before making non-essential purchases, give yourself some time to think about them. Delaying gratification will definitely help you make more deliberate decisions and avoid impulsive spending.
5. When it comes to buying-power, my rule of thumb is: Can’t afford it ? Don’t buy it. I know Western standards lead us to believe “loans are a part of life”, except they’re not. If I can’t afford a house straight up, I’ll rent. If I can’t afford a car, I’ll bike, walk or take public transportation. I know “financial gurus” will argue rent is wasted money. The global financial crisis of 2008 would beg to differ. FYI, in monotheistic religions (Judaism, Christianity and Islam), usury and interest are forbidden and considered a major sin.
6. Speaking of alternatives, get yourself a bike, or use public transportation to commute: Biking to work and using public transportation are the most cost-effective options to reduce spending. In fact, according to the American Public Transportation Association, relying on public transportation can save you, on average, over $10,000 per year compared to owning and maintaining a car. Yeah, because owning a car doesn’t just mean paying for fuel, it also means parking fees, car maintenance and other checkups. Cars are expensive !
7. Comparison shopping: Research and compare prices before making major purchases. Look for discounts, sales, or alternative options that offer better value for your money. Trust me, they’re out there. Also, stop comparing what you have to what others have. One sure way to help you with that is to leave social media altogether.
8. Set financial goals: Establish short-term and long-term financial goals. We all know about emergency funds (or savings) but how about a vacation fund ? Set exciting goals and go for them. Having clear goals is motivating and will help you avoid unnecessary expenses.
9. Speaking of expenses, track them: Keeping a record helps me gain a better understanding of where my money is going. This awareness will help you identify areas where you can cut back and save, like useless subscriptions !
10. Objective ZERO debt: Perhaps you took out a loan for college, it’s cool. Now you know how it feels to have that weight on your shoulders (hence my fifth bullet-point). It’s time to prioritize paying it back and avoid further enslavement. No more loans, no more credit cards, and if you want to take it a step further, pay everything in cash. Credit and debit cards have made it extremely hard to keep track of our spending, a simple switch to cash will change that.
11. Practice minimalism: Buy less, consume less, and when you do, consume mindfully. Seek cost-effective alternatives to the things you still buy. Give secondhand items a shot, start cooking at home, meal prepping, use free resources and services when available. There are many different ways to cut down on your spending, you just have to think outside of the box (A Story about Boxes, great read).
12. Automate savings: The best way to save money is to forget that you’re even saving money. Set up automatic transfers to a savings account and forget about it. By automating your savings, you ensure that at least a portion of your income is consistently set aside before you get a chance to spend it.
13. Partake in free or low-cost activities: There are TONS of them ! Free community events, outdoor activities, borrowed books from libraries, barbecues with friends, spending time in nature, free expos and museums, I mean the list is endless. You don’t HAVE to spend money to have fun.
14. Reduce dining out: I used to dine out/order out every single day. I did so for years and it almost ruined me. And then I went vegan. Being in a vegan unfriendly city has been a major blessing for me. Indeed, due to limited vegan options in my city, I had to learn how to cook, a major turnaround for me. If you’ve been blessed with cooking talent, embrace it, you’ll save yourself a significant amount of money. In fact, a study by the U.S. Bureau of Labor Statistics found that the average household spends around $3,365 per year on dining out. That’s a lot of money. Imagine all the things you could accomplish with it !
15. Cut cable or satellite TV subscriptions: Do people still watch cable btw ? Streaming services are great if you’re a movie-buff like me, otherwise trade your TV for a nice bike or whatever. Life happens when you’re outside.

I hope this helps you look at your spending from a different perspective, and perhaps reconsider some of your spending habits to allow for more freedom.

Oh and, before I let you go, if you think good health (and good food) is expensive, try illness. Prevention is always better than cure so make sure you stay active, eat healthy, GMO-free, pesticide-free plants and stay hydrated.

P.S.: There are two theories as to why we call a money box a “piggy bank”:

1. It is said that back in the day, household items such as plates and pots were made from an economical orange-colored clay called ‘pygg’. Therefore, whenever people had a few extra coins, they would simply drop them into their “clay jars”, which they referred to as ‘pygg’ banks.
2. The second theory originates from Germany. As you may know, there was a significant influx of German immigrants to the United States in the last century, and they brought their cultural practices along with them. For centuries, Germans have been using pig-shaped money boxes. It is believed that the pig shape is associated with the German philosophy that regards pigs as symbols of fertility and frugality.

Thanks for reading.

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I write about minimalism, health, slow living, my adventures as an explorer, environmental solutions and more.

Till next time !

Peace.

Tee.