Like everyone else wrestling with the higher cost of living these days, I am constantly amazed by how much money I spend. So, I do a budget overhaul a couple of times a year, in hopes of paring down my spending. And statistics show that I am in good company.
The personal finance sphere is ushering in a period of “intentional spending” and “financial minimalism”—a cycle of focusing on “simplifying financial systems, reducing consumption, and aligning spending with personal values to achieve peace and security.”
I’m all about that.
My financial life used to be much more complex—too many accounts, too much property (including a vacation home), and a general feeling of just not being in control of my finances.
And as I said, the road to simplicity is attracting many travelers, who are sharing some of their best practices to gain financial control. Let’s look at three easy ways you can try it out yourself, and then six longer-term steps to take to embrace the mindset.
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3 Financial Minimalism Strategies You Can Try Right Now
The “no-spend” Friday: Buy nothing—lunch, coffee, Amazon, etc.—for the entire day. Then, put the money you would have spent in your savings/investing account. Some folks are adopting no-buy or low-buy years (a goal to shoot for)! I’ve actually done this low-buy effort a couple of times. The savings were much more than I imagined and really changed my outlook on budgeting.
Pantry-raid dinner: Create a meal using only items in your pantry, freezer, or fridge. I find that since COVID—when inflation really kicked in—I cook a lot more at home and rarely throw any leftovers away. The internet is amazing, as I can just Google “what can you make with leftover xxxx,” and I’ll use up all those scraps!
Zero-cost entertainment: Read a book, stream a movie, play a game, but don’t spend any money on entertainment for a day. And then deposit the money you would have spent in your savings/investing account.
6 Ways to Embrace Financial Minimalism for the Long Haul
For the longer-term goal of financial minimalism, commit to:
- Canceling things you don’t need or use or that don’t add value to your life (like those unread magazine subscriptions). I would recommend that you do this at least yearly.
- Streamline your financial accounts.
- Buy higher-quality items so that you don’t have to replace them as often.
- Focus on experiences instead of material items. I think the Millennials are getting it right with this idea. Most of my real estate clients are older and have collected a house full of China, crystal, artifacts, etc., from their travels, and you know what—none of their children want any of that stuff. According to a Harris study, “72% of millennials prefer to spend money on experiences like concerts, social and athletic events, and vacations rather than material things.” I really wish I had learned this lesson earlier in life.
- Create micro-habits by adopting small, manageable weekly financial habits that don’t take a lot of time, in order to increase your financial knowledge. For example, commit to reading a financial column or newsletter to learn something new.
- Embrace intentionality. Think about each dollar that you spend before you open your wallet. No more impulse buying!
How does this help you? Greater peace of mind, spending less time on things that don’t add value to your life, and probably spending less money overall.
This article on financial minimalism has been partially excerpted from our list, “The Top 12 Personal Finance Trends in 2026” from April’s edition of Cabot Money Club Magazine. To see the full list, subscribe today.
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