With minimalism gaining the attention of millions around the world,
it’s not surprising that so many people are also seeking ways to spend less.
I guess some are calling this movement financial minimalism.
And it has a nice ring to it!
So today I'd like to spend some time dissecting this idea of spending less
with you. Because wanting to spend less, and actually doing it are two different things.
So if that is of interest to you, then
stay tuned because I'm breaking it all down into seven practical tips.
Number one is to rethink your spending habits.
Spending less starts with your spending habits and you first have to know where your money is
going if you're at all trying to cut back and save more. Now a super-easy way to go about this
is through tracking your spending and there are a number of ways you can do this.
However, my wife and I track all of our spendings in Notion.
I mentioned before in a recent financial video I posted that we created a shared workspace in
Notion that we use to track, categorize and manage our finances. Now with every new entry we create,
we assign various tags that not only help us organize and categorize our spending
but it also gives us the power to create filters and view our spending in really unique ways.
For example. we assign every purchase we make a spending cycle of regular or irregular.
Regular meaning it's something we spend money on consistently every month.
Irregular meaning it's not.
Now the power of this simple tag really shines through when you create filters around it because
Notion has this really cool database feature that gives you the flexibility to do a lot.
So within this shared workspace, we created a filtered view that only shows us purchases
either of us have made that are considered irregular. Now why this important?
Every time we sit down together to review our spending and budget. This irregular category
tells us everything we need to know about our spending habits for that particular month.
How much me we spent and what we spent it on.
And if we don't like what we see,
then we make adjustments and practice better spending habits next month.
Now I promise you, that'll walk you through this entire workspace in detail in a separate video
because there is a lot of information and cool things we created here
that warrant its own video. So make sure you stick around so you don't miss that.
Number two is to spend your money where you spend your time and cut the rest.
Believe it or not, the way you spend your time says a lot about what you value,
and your money will always follow your values.
So when I say spend your money where you spend your time, that should be a sign
for you to take a hard look at what you value and how you're spending your time.
Now if your values are in order and you're managing your time properly then you should
have a clear understanding of what your money is doing and where it's going at all times.
If you're not, then that's a red flag!
Meaning you're most likely spending your time in the wrong place,
doing things that are not adding to your life. Thus negatively impacting your finances
and keeping your money out of your control.
If this is you, then how do we fix this?
Well, we have to go back to the drawing board and begin building habits that support the
things we actually value. And that means getting clear about what you value exactly.
To help you get started I'll link to a playlist of videos I created below all about how to build
the right habits, break up with the wrong ones, and develop systems that support you.
I'll also link to where you can download my core values
worksheet that will help you iron out and focus on what you actually value.
Number three is to budget and set goals.
Now my wife and I have a list of financial goals that we want to accomplish. Some are short-term
while others are long-term goals that our future selves will later thank us for, I'm sure of it.
And because we took the time to identify and list these goals, it has become much easier for us to
not only want to spend less but actually do it because we know that every action we take and
dollar we spend is either moving us closer to our goals or pulling us away from them.
These goals, in combination with budgeting, and communicating,
having a vision and managing our finances monthly have afforded us the opportunity to not only
achieve many of our short-term goals but do so in a shorter amount of time than we expected to.
Which has given us the flexibility to adjust and attack our long-term goals as well.
Now if you're not budgeting and you don't have a list of financial goals you want to accomplish
then I highly want to encourage you to get on that right away.
Your goals will keep you focused and your budget will give you the wisdom
to know what to do and how to spend your money.
Number four, before you buy, ask yourself: What impact is this purchase going to have on my life?
By simply taking the time to question every purchase you make,
and sometimes waiting a day or two before you buy is all it takes to cut back on impulse spending.
A recent survey, says that the top 10 most common impulse buys include:
Food/groceries Clothing
Household items Technology
Coffee Vehicles
Takeout Shoes
Books Video games
Now to no surprise, food and groceries are sitting at the top of this list. And if I'm being honest,
my wife has had to question me a few times at the grocery store every time I see a new
vegan treat that piques my interest. It's like my inner 5 year old comes out and before I know it
I'm impulsively grabbing food we don't need, nor have a plan for.
At the end of the day, I've had to adjust my habits and start questioning purchases before
it's too late. So take it from me, someone who is actively growing on this journey with you,
if you haven't questioned it, it's probably an impulsive purchase.
Number five is to meal plan and meal prep.
An easy way to spend less, especially in the kitchen,
is by meal planning and prepping for the week.
When you take the extra time to plan out your meals and prep anything you need
for the week ahead you'll actually save yourself a ton of time and a lot of money.
I don't about you, but before my wife and I met I would occasionally make random stops at the
grocery store, just to buy something quick to eat, mainly a frozen pizza or a potpie,
because I either didn't feel like cooking or
simply wasn't in the mood for the food I already had in my kitchen.
Doing this, three, four times a week added up quickly. And
who knows how much I spent at the grocery, a lot I'm sure!
However, the moment I started to meal plan and meal prep
I began to build some structure in the kitchen that translated to spending less
in the grocery store. And I have to give credit where credit is due,
my wife played a big role is in assisting me with this and we both now make planning and prepping
a priority every time we leave the house to shop and come home with bags of groceries.
Number six is don't overspend on gifts.
I know that we still have a few months before the holiday season officially arrives, but
I don't believe it's ever too early to begin talking about gifts and not overspending.
Now personally, I'm a gift-giver. I enjoy buying
and giving things to others that they can use and get value from day-to-day.
I also enjoy the gift wrapping process and finding unique ways to present the gifts I give.
However, I'd also like to add that I've mastered the art of not overspending
and it's something that I want you to pay more attention to if it's currently not on your radar.
So before you buy, before you give, before you lose sight of the actual meaning of gift-giving
ask yourself a few questions:
How much can I afford to spend?
Is this something the receiver will find value in?
or is it just something I want them to have?
Does the price actually matter?
Will bigger or more expensive impact the quality of this gift in any way?
See, when we begin to think more intentionally about the gifts we give,
the pressure we put on ourselves to impress begins to fade away
and we no longer feel the need to overspend in order to overcompensate
for the fact that our gift is not really something the receiver wants, needs, or finds value in.
Remember it's not what you spend that matters, it's the value, intent,
and purpose that gift serves to the person receiving it that makes all the difference.
Number seven is to explore other transportation methods.
If your current situation requires you to drive
a lot then you're probably spending a lot on gas as a result of that.
So how can you spend less on transportation every month?
Well, if your situation allows, then you have a few different options. Such as:
Walking,
Riding a bike
Public transportation
as well as carpooling.
Now I know that this idea of exploring other transportation methods is subjective.
Because it truly depends on your situation.
For example, if you have to drive on the highway in order to get back and
forth between where you are and where to need to go, then walking or riding
a bike aren't going to be great options for you. Whereas carpooling might be.
On the other hand, if your job is down the street or a few blocks from your home,
then all of these options are possibilities for you.
See, if you can save money on transportation and spend less on gas and maintenance then
consider these options especially if they'll help you reach your other financial goals.
If you enjoyed this conversation, comment below and let me know which tip I mentioned
is going to help you the most with spending
less. I'd also love to continue to conversation with you in general.
Keep growing, keep learning and always remember to stay true to you.
I'll see you in the next one.
Peace!