The minimalist guide to simplifying your finances

 

Annette Rowena | Yahoo

Could you adapt to the idea of being a minimalist? Well, the thought of having the bare minimum number of items to live with is a difficult pill to swallow for some.

Yet, others who have given it a try acclaim that its given them so much freedom – there’s hardly any clutter to deal with, and the freedom of having more space to yourself instead of items to care and worry over is now a very much welcomed necessity to them.

The minimalistic style of life can be applied in many ways, and here’s an interesting way to start. You could apply the concept to your finances, and see how it could work for you in the long run.

Sometimes simplicity does help you focus on your actions and get more things done. Here’s how you can do just that:

The Art of Budgeting

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It does not matter how big your income is; the right thing to do is always spend less than you take in. Consider this as the Cardinal Rule No.1 in budgeting. Despite the concept being so simple, many people still get into debt.

Until you’re able to completely work this part of the equation and streamline all your expenditures, everything else needn’t even be taken into consideration yet. Get calculating and figure out a decent estimate of what you truly need to spend to survive, and you’ll begin to see that everything else you spend on is nothing more than a non-essential want.

Go Paperless With Your Statements (And All Else)

Do you secretly love the pile of bills and statements that come in the mail, yet dread opening them to see the figures that await you?

This in actual effect causes unnecessary clutter. You open them, read their contents and later, bin the papers. Save yourself from these unnecessary actions and opt for e-copies instead. For one, you’re giving a tree a hug.

And another, when you’re done, you can tick and delete it, or save the copy for your records.

Say Hi to Automated Bill Payments

Do you set aside a certain amount of time every month to go through your bills and pay them? Those very precious minutes can be spent on something else than a manually repetitive task.

Here’s how you can set up an automated bill payment service with POSB and UOB. Yet another stash of time saved, and you’ve minimized your workflow too.

Increase Your Savings Gradient

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Are you used to putting aside 20% of your salary every month? Try upping that percentage by 5%, and as you get more accustomed to reducing your costs and bills, increase the percentage again.

Invest the funds you’ve kept aside to see it grow to its fullest potential. Not quite sure on how to go about it? This article on how to invest should be able to help you out.

Tone Down on the Internet

Information is good, but an excess of it can do you a good deal of harm. The mental clutter that happens when you open all your social media websites, check out its trending news and hop from one shopping app to another might entice you, but it’s also whiling away your time and money.

And in case you haven’t noticed, the same flow recurs every other hour. It’s difficult to put your phone down and attend to things when you’ve got a mental alarm clock that goes off inside you, saying that it’s time to check your Instagram feed again.

Keep your phone in a place that’s away from you, but one where you can hear it when it rings. Switch off the notifications so that you’re not called to your phone by its buzzes. Delete apps which are really unnecessary, especially ones related to shopping.

This way, if you really need to shop, you’ll have to open a tab and shop. Chances are that you’ll reduce your online shopping binges with that one simple move.

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