5 minimalist habits to achieve financial freedom

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Financial freedom and having fewer belongings are intrinsically linked

The financial benefits of simplifying, reducing and having less are undeniable. Financial freedom also includes a minimalist mindset, embracing the idea of ​​living debt-free, owning less, and being intentional with resources, especially money.

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Observing expenses, reducing consumption and letting go of items that are no longer useful can transform your financial life and promote a sense of security. So, here are five minimalist habits that contribute to well-being and achieving financial freedom:

1 – Stop buying

The best way to maintain financial control is to get organized and reduce purchases. By cutting back on spending and stopping purchasing new items, you free up space and time to let go and organize your finances, while also increasing your savings.

Choose a category in which you are spending excessively and stop shopping in that area for a set period of time. For example, avoid spending money at coffee shops until you pay off your credit card debt. Refrain from buying shoes for six months. Limit your grocery shopping to every two weeks and only use what you already have at home. Setting these limits and restrictions is a useful practice that promotes financial discipline, allowing you to spend more consciously and save more.

2 – Drink coffee at home

An Empower survey reveals that many people still spend US$7 (R$35) per day on coffee, totaling US$2,500 (R$13,000) annually. Spending on coffee away from home can add up quickly without proper planning. Preparing coffee at home will result in significant savings in your pocket.

3- Create a meal plan

Create a meal plan considering the food available in the refrigerator, freezer and pantry. With a meal plan, it becomes simpler to resist the temptation to order food or go out to dinner, which results in savings and avoids waste. While purchasing items in bulk can be cost-effective, it is essential to check expiration dates to prevent food from spoiling before it is used. A meal plan is essential in this regard.

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4 – Have a budget

Record your budget before you start spending. Determine how you want to distribute your monthly income. If you don’t know how to create a budget, check your bank account statement. This is an excellent starting point. Most banks provide budgeting tools that show expenses by category and a monthly summary. Keep close tabs on categories where you know you spend excessively.

5 – Borrow or reuse

Before placing an item in your shopping cart, whether in physical stores or online, pause and reconsider the purchase for at least 24 hours, reflecting on the following:

• Do I really need this item?
• Is it within my budget?
• Can I borrow it from someone?
• Do I have something at home that could replace this new item?

Financial freedom and having fewer belongings are intrinsically linked. If you want to get organized, look not only at how much you earn, but also how much you have in terms of material goods. When financial discipline is lacking, disorganization persists. Don’t let clutter consume your time and money.

Amy Slenker-Smith is an economist, coach, and founder of the website Simply Enough, where she shares articles and resources about living simply and intentionally.

(Translated by Poliana Santos)