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five steps to minimalist money management how to manage your money in a minimalist way are you looking to manage your money better do you want to know how to manage your money in a minimalist way do you want a process to ensure that you reach your financial goals then you landed on the right video we are committed to helping people learn how to manage their money better our mission is simple we want everyone in the world to have access to good reliable information about personal finance and investing so we planned hundreds of videos that will teach you to build financial freedom so that you can live a happier more successful life want the best advice on personal finance subscribe to the sms youtube channel it's completely free without any hidden fees forever in this video you will learn the five steps to achieve minimalist money management skill after that we will go through a few very common questions on financial minimalism like why is financial minimalism gaining popularity what are the benefits of living a minimalist lifestyle so the next few minutes are going to be filled with a lot of value are you ready to dive let's go financial iq can be a scary topic for many people many people don't understand it and some even avoid thinking about it altogether but money is power and a lot of people make mistakes while managing their finances some do it out of ignorance while others do it out of greed but the good news is that you don't have to make all these mistakes you can learn how to manage your money intelligently by following this video what is financial minimalism minimalism is a personal philosophy of living with less it's also the act of keeping things simple stripping things of excess and having only the essentials a person who practices minimalism is referred to as a minimalist minimalism is a simple mindset that teaches people to have less and have it serve more the minimalist approach says that possessions can hold you back from living a happy life because they complicate your environment as a result they often choose to downsize their possessions and simplify their lives minimalists tend to keep only the things that they need and discard anything else they also tend to have a lot of free time because they do not own as many items as others now let's get on to the five steps to manage your money in a minimalist way step one while budgeting focus on your spending habits let me start by saying one of my favorite quotes from the book rich dad poor dad by robert kiyosaki it says if you find yourself in a hole stop digging more than earning the spending habits will determine your financial status like how much you can save and how fast you can improve your financial life so when you are trying to plan your budget look at your spending habits first you don't need to earn a lot of money however you need to look at your expenses and figure out what cost you too much money if you can reduce the cost of those things it will be easier for you to save you will be surprised that you will not have much debt or credit card bills anymore in a short time create two lists while budgeting one is called needs based where you prioritize what things you need in life and then figure out how much money you need to spend on those things the other is called wants based where you prioritize what items you want in life and then figure out how much money you can afford to spend on those things the ideal minimalist approach is to spend zero on wants so when you are starting this approach question to spend even a penny on the wants it doesn't matter if it is a meal or a cup of coffee ask yourself if it is really needed or can you postpone it or is there any cheaper option only if it is absolutely required then spend on it step two keep your investing strategies simple and automatic do you have a savings account are you maintaining an emergency fund if not the first step is to initiate these then keep a simple strategy to increase the cash flow into these the best way is to fix a particular percent of your paycheck and automate the same amount as soon as you receive your salary after that every dollar you save by observing the minimalist money management approach should go to work which means either you make it work by investing in the stock market or real estate or something else just make sure that it is not sitting ideal that way you can reach your financial goals faster step three track and spend with purpose paperwork pays off in the long run if you can clearly analyze what happened last year or last month don't you think you can do better this time same thing with any situation with your past experience you can do a lot better next time so track everything happening today for future reference as part of financial minimalism you need to spend with purpose track it and refer it back in the future there are many apps on mobile or the internet to keep track of your spending even a simple excel sheet or a book and a pen can help your wallet work for you step 4 review adjust and make progress debt management is an art that requires you to remove any excesses from your life to make progress in the right direction you need to review and adjust your mindset ask yourself if you're finding pleasure in material things like gadgets clothes accessories check how much percent of your monthly spending is going into these then start changing your habits to get rid of this clutter around you when you start out with financial minimalism you will reduce your stress levels also as you will be simplifying things around you 5 own the minimalism when you have finally achieved financial minimalism don't be afraid to share your story encourage others and give them away out of their debt traps in this age of online sharing everyone can connect to each other so it is easier for them to seek help from people who have already been through it instead of wasting money on things that do not make you happy or bring you joy in the long term cut down unnecessary expenses and live with purpose however it is not an easy journey you will need to change your habits and get rid of the clutter in your life you will also need to get used to doing things with less money even people around you especially the millennials may not understand why you are doing this still they will come to know you better once you start sharing your story for more motivation on this topic let us know in the comments or you can go through blog posts and books on the subject the bottom line is to be prepared to go through it and know that you will succeed good luck why is financial minimalism gaining popularity financial minimalism is not only a way to live a better life but it is one of the best ways to get started on your journey towards financial freedom minimalist approach to money management is not about living with less but rather spending on things that are important to you the things that make your life worth living this type of lifestyle does not allow for excesses or extravagances instead it forces one to be accountable enabling one to live a life centered around their values furthermore its self-centric centricity allows for a greater sense of freedom and less distraction hence gaining popularity nowadays what are the benefits of living a minimalist lifestyle the main benefits of living a minimalist lifestyle are as follows living with less can make you feel more in control of your life it can also help you to focus on the things that are most important in your life you will be able to make better decisions and save more money with this the easy part is over your mind understands what should be done but the challenging part is making this your habit the best way to do that is to take small steps towards it so take some action if you reach this portion of the video do you think we deserve a like also if you subscribe you can watch similar great content are you in [Music] the next video will show you 13 habits you need to stop to speed up your journey to wealth and prosperity but before we do take just a minute and reflect on what the current videos have revealed about yourself which of these tips from our experts resonates with you most which ones can be changed easily now or soon what simple action can you take today to lead to even more wealth in the future there's no time like right now to start building that nest egg