• Don’t buy what you cannot afford
It’s goes without saying that when you spend beyond your means you’re only leaving yourself in at deficit. One way to a minimalistic approach to your personal finances is really living within your means. Spending money you don’t have will make you feel good and glorious in the short term ( Micro Vision) however you’re falling behind in the long term ( Macro Vision). So truly have a sit down with yourself or some friends and really create a Macro Vision for your finances this will help you in acting out your Micro level activities.
• Set budgets
Now this is a daunting task for any young person. It’s relatively difficult because sometimes you don’t have a fixed salary so you really spending based on what you’ve earned in that month. However we want to challenge you regardless of that and say , create a budget especially for things that you’ll definitely spend your money on such as clothing, transport and food. The key to budgets and finances in general is discipline, maintaining discipline is crucial because we encounter various temptations on a day to day basis with our spending habits.
• Invest your money
Now this doesn’t sound quite minimalistic however with the money saving tips above you ought to get something pertaining to where exactly the extra cash should go. So what we suggest is that , open up an investment account, the simplest one at this present moment is Easy Equities . Here you can find a number of investments to put your money in automatically on monthly basis if you choose or make investments as soon as you have cash to spare.
• Don’t make unnecessary subscriptions
Many of us get drawn into really unnecessary subscriptions just because they seem “cheap” and the sad thing is, we don’t even use the services that we’re paying for every month. A perfect example of this is gym subscriptions, we get pulled in by the hype of getting fit and creating that ultimate “ summer body “ that when winter comes we just simply neglect the whole gym experience. Now the sad thing is, the gym does not neglect your monthly subscription. You find yourself paying for something you don’t even use , instead of putting your money towards buying a car, property or even your tuition fees.
Last tip. Always , and we mean always. Create a 3 second window we call the Macro Window. In those 3 seconds decide, is what I’m spending my money on going to get me where I want to be financially in the next 3 days ? 3 weeks ? 3 months or 3 years. If the answer for either one of those questions is no. Don’t spend your money.