The Minimalist Budget: A Practical Guide On How to Save Money, Spend Less And Live More With A Minimalist Lifestyle - Simeon Lindstrom │ Animated Summary
This book will teach you how to budget your money, and still live an awesome life, without sacrificing quality of life.
What is minimalist budgeting?
A budget makes you think of diet. This book offers a different approach. You will not scrape by, and you will live in abundance. Money is truly a resource that we should all pay attention to.
Budgeting is about knowing what you need, so that you can live an abundant life. Minimalist budgeting is about being conscious of how are you spend money. Remember the primary purpose of your life is to be happy.
The Purchase
Most of us go to the store and buy things mindlessly without even thinking about it. Whereas, mindful shopping is where you know exactly what you want to buy, and why.
In order for marketing to work, it must make you feel like something is missing in your life. Therefore, as a minimalist consumer, you must be mindful of negative emotions. When making a purchase, make sure that you do that your research. You might want to purchase online, or use convenient stores.
Don’t make bad consumer choices because you didn't have the information.
Make sure to go shopping when you have lots of time. Know what you want to buy and why. Visualize having the product in your life. Will it benefit your life? Look at the workmanship of the products. Will it last long? How will your product look one year from now?
For example, if you buy bulk potatoes, you will save money. But peeling those potatoes will cost you time. You must look at the products prices in terms of time it will take you to earn that money. Think of how many hours you have to work in order to purchase a hundred dollar product. That’s how you should view the price of products.
Don’t Keep Up With Others
We should not compare ourselves with others. Do not give money to marketers that tell you suck.
Finding the Core of the Budget
You must be mindful, and smart with money. Also factor in your time. The sweet spot is between what you want and need. Time is fixed, all of us only have 24 hours, so we have to use those hours wisely.
Work is trading you time for money. We must find a balance between time and money. A solid minimalist budget begins with time. Begin with 24 hours, then block out some time for exercise, meals, getting ready, and relaxation. This is your time budget.
Our spending habits are not in tune with our values and goals. Our lives are finite. You can't go into debt with time. When you choose to play video games for four hours, you are saying this is the best use of your time, instead of spending time with loved ones.
What value do things bring to our lives? Ask this question often. You may want to buy unwashed potatoes because the time you spend in the kitchen is quality time to you. You must factor in your values into your budget. What is most important to you? A budget must also take time into account.
Making Your Budget (Cutting)
If you allot an hour to something that is important to you, leave it and value it. If it's not important you can cut it. If you crave alone time, you must add that to your budget. If superhero figurines make you happy, add it to the budget. Always remember your values when making your budget.
If you spend 2% of your income on magazines, do those magazines add 2% value to your life? You spend time reading a magazine, about 1 and a half hours, does that add value to your life? Think about budget cutting as spring cleaning. Take away things that don't add value to your life.
How to Make Smart Goals
S: Specific. Your goals must be clear and not vague.
M: Measurable. Your goal must be measurable to know how far along you are in achieving your goal.
A: Achievable. Your goal should stretch you, but it should be achievable.
R: Realistic. Your goals must be within the realms of your knowledge, time, and resources.
T: Time based. Goals have an expiration date.
The Nitty Gritty
- Identify your values.
- Know how much you earn.
- Cut out what is not important in terms of your values.
Food
Decide what your main motivation is. Do you have time to make food? Do you have money for food?
When You Don't Have Money for Food
Eat fast food. If you are building a business, having food delivered to you can save you money and time.
When You Don't Have Time for Food
Buy cookbooks. Buy a crock pot and eat salads.
Action Steps
- Make a grocery list and stick to it.
- Buy No Name brands.
- Products that are at eye level have the most expensive brands. Look up and down for cheaper brands.
- Look for discounts.
- Buy fruits in season.
- Grow your own vegetables.
- Buy foods in bulk that don't spoil.
- One quality restaurant meal is better than 3 average fast food meals.
- Deliver food to your home.
Clothes
Clothes have come to represent self-esteem. From a minimalist perspective, dress well and derive pleasure from wearing good clothes. The minimalist philosophy is all about focusing only on those things that serve your highest good.
When You Don't Have Time to Spend On Clothing
Hire a personal shopper if you can or ask a stylish friend for help.
When You Don't Have Money to Spend On Clothes
You don't have to spend a fortune to look good. Learn to sew if you have the time.
When You Don't Have Money or time For Clothing
Enjoy it.
Action Steps
- Buy multi-purpose clothing.
- Avoid sales. If you wouldn't have bought it otherwise don't buy it.
- Sell your clothes that you haven't worn for a year.
- Vacuum seal your clothes.
- Switch to natural detergents.
- Iron at the lowest setting to not damage your clothes.
Health
Start a health regime. Focus on your core.
When You Don't Have Time to Focus on Health
Look at your schedule and make time for a health regime, because you only have one body to last a lifetime. Do research. See what you can do with the least effort to get the best health.
When You Don't Have Money to Focus on Health
Invest in health. This is a priority. Look at videos on YouTube, they are free. Healthy eating doesn't have to cost an arm and a leg. Do your research.
- Avoid supplements and save money. Omega-3 and vitamins are enough.
- If you choose to go to the gym make full use of the facilities.
- Vitamin C protects you against colds and flu's.
- Also, running or walking is free. You can make it a social activity.
- Downgrade your health insurance if you are healthy and under 40.
- Quit smoking and drinking.
- Ask for generic medicines.
- Drink vegetable juice, they have lots of vitamins.
- Switch to tea, instead of coffee.
- You can turn your daily activities into exercise. For example you can walk the dogs.
Home and Cleaning
Your home must be a tranquil place. You can save time by investing in appliances like a dishwasher.
You Can Save Money By:
- Buying in bulk.
- Using unbranded detergents.
- Avoid buying newspapers and magazines. Everything is online.
- Use energy saving bulbs. Have a yard sale to get rid of things you don't use.
- Learn to do some basic DIY.
- Use loyalty programs that give you points when you shop at their stores.
Credit
The less debt you have, the better. If your debt is out of control, make sure to get professional help.
- Save a small amount every month.
- Pay your credit card and mortgage payments.
- You can switch banks that offer low fees.
- Use a pay-as-you-go phone.
- Don’t buy lottery tickets.
- See an accountant so that he can get you tax exemptions.
- Avoid speeding, you may get a ticket.
- If you are an impulse buyer, make sure to carry a small amount of cash with you.
Miscellaneous
- Watch TED Talks.
- Sign up for courses on Coursera.
- Keep a piggy bank.
- Buy Christmas gifts early.
- Choose easy to maintain hairstyles.
The Challenge - Putting Everything in Practice
Find out what works for you. Don’t be miserly, balance your life. Save money and still have an awesome life. Remember that your values play a major part in your minimalist budgeting. You must know what is important to you. Look at your values, and then based on your values develop your budget plan. Take a long hard look at your life. What is truly important in your life?
Minimalism is about getting down to the essentials. Minimalism is about being real. It’s about being mindful with material things.
Your Own Minimalist Budget
A minimalist budget is made up of a plan, time, money and values. Keep these things in mind. Don’t guess how much money you spend, know exactly what you spend your money on.
Focus on your goals and values. When creating goals make sure that they are SMART. Break down your goal into smaller goals, and focus on one goal at a time. Commit to your goals. Feel energized to achieve your goals. Read your goals daily. Constantly tweak your goals. Go slowly, step by step. If you feel like an item will truly add value to your life, get it.
The Next Months and Beyond
Check on your core beliefs. Decide what's essential to your life. Live more and spend less. A budget must take into account your values. The goal is to match your spending habits with your goals and values. How do you want your life to be?
Some Useful Websites
Conclusion
Minimalism is about getting down to the essentials. Minimalism is about being real. It’s about being mindful with material things. You can still budget and live an abundant life.
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Well done, great summary and wonderful blog & vlog. Minimalist has been a trending word recently, it is go to see some action steps towards that lifestyle explained. The Smart goal is something for me to think about. Really like the visuals, how did you do that?
Thanks. I use a software called VideoScribe.