Photo Credit: Sumetho
It’s not quite spring yet but I feel like I’ve already caught the spring cleaning bug. I’ve tackled my closet getting rid of almost half my clothes. I’ve went through old magazines and paperwork and pitched almost everything. And, now I’m about to start on the toys….
I wouldn’t say I’m a minimalist but I definitely hate clutter. When the house is a mess I can’t even think. When everything is nice and clean and in its place I want all areas of my life to be organized, especially my finances.
While I’m not ready to take my house down to the bare essentials I see a lot of appeal in keeping a minimalistic outlook with my finances.
Here’s what I’m thinking.
Budgeting Basics
Last month I successfully tracked my spending to the penny. I’ll admit: it was kind of fun. But in all honestly my money went where I thought it would. No real surprises.
I already live on a low budget. To me, there’s no point in striving extra hard to save a couple bucks. My time could be much better utilized in earning more money.
In addition I’ve realized something else. My spending habits are just that – habits. I don’t need a written budget. My bills barely fluctuate and whether I track my spending or not I always spend around the same amount of money.
Saving more money equals earning more money.
Thoughts: Fancy spreadsheets are great if that’s something you’re into but if not why torture yourself? Keeping your budget simple and being aware of how you’re spending your money can suffice for many people.
Also at some point you’ll realize you can only cut your budget down so far. If you need more money you have to earn more money.
Saving/Investing/Financial Goals
I’ll be the first to admit: I read way too much. Of course there’s nothing wrong with reading. I think everyone should strive to continually improve themselves. However, my problem is that between the hundreds of blogs and books I read each year I start to adopt other people’s saving goals instead of mine.
This causes me to spread my goals thin. Some people want to pay cash for a house, max out all their retirement accounts, or pay off debt.
All I really think about is buying an investment property. That’s what I really want to do. I do want to look for ways to get more out of the money I’m saving, but in the end all of that money will go to an investment property.
One clear financial goal for the year that I’m actually passionate about makes earning and saving more money so much more appealing.
Thoughts: It’s nice to learn from others but you ultimately have to do what you feel is right for you, regardless of what other people say. Not everyone thinks like you and you don’t think like them so don’t adopt other people’s goals. Stick to your own.
I’m in an okay spot financially. I’m not rich by any means but my income is slowly and steadily rising. My expenses are low. And my only debt is a loan I took for housing which equates to $226/ month (less than three years left on the term) which is much cheaper than most people’s rent.
Being intentional and simple with your finances, is in my opinion, a smart way to go. By having one or two clearly defined goals and keeping everything else simple you’ll be much more likely to stay on track.