How To Be A Financial Minimalist

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First, I think it’s important to understand that “financial minimalism” is a LOT more than me saying: Just don’t spend money. Even though, it’s also as simple as: just don’t spend money.

Instead, to me, Financial Minimalism supports the notion that it’s OK to spend money on something and treat yourself…as long as that ‘something’ brings you the equivalent amount of value as what you spent on it, and as long as you couldn’t get a better value for that spending elsewhere. It’s all about MAXIMIZING your value when you do spend money, then MINIMIZING the experiences that aren’t as important - and that then brings us to our first financial minimalism principle:

SECOND: CUTTING OUT EVERYTHING YOU DON’T NEED TO SPEND MONEY ON

The basis of this is that the LESS financial overhead you have, the more “PROFIT” you have left over.

One, you’re going to sort through everything you DON’T NEED OR DON’T USE - and then you can cut it out entirely

Two, you’ll have a second category of expenses you can negotiate and shop around for
This might include a health insurance plan, car insurance, home insurance, or even a mortgage…I’ve literally gone through EVERY recurring charge of mine and found a way to bring costs down.

Three, you’ll have a list of your expenses that you can just cut back on:

Now, remember…Financial Minimalism is NOT about just cutting as much spending as you possibly can, selling all your furniture, and living in a tent…but, it IS about recognizing which spending habits are really contributing the most to your overall enjoyment of life, and cutting out everything else that’s unnecessary and holding you back from reaching that goal.

Third: Try to find the BEST VALUE for what you DO SPEND.
This one is JUST about realizing where you get the most enjoyment for your spending, and what’s going to bring you the best “bang for the buck” in terms of your happiness…then trying to find the best financial value, while removing everything else that gets in the way.

Fourth: Learn to live on less, despite how much you make
From my own experience, after a few months of doing this, you’ll VERY quickly realize that you could just as easily spend less money without even realizing it, you won’t worsen your quality of life, and you’ll be JUST as happy spending less as you were spending more. Once you see this for yourself, firsthand - you’ll start to decouple the thought that money brings more happiness - and you’ll WANT to start saving more money, knowing that the more you save, the more OPTIONS that will give you in the future.

FIFTH: INVEST YOUR MONEY
The more money you have saved and invested, the more FREEDOM is brings you…plain and simple. You’ll have the freedom to leave the job you hate, to work on the projects you find most fulfilling, or just go AWOL and work on your hobbies all day long.

LAST: Think about what you REALLY think about what you want out of life, and what’s going to make you happy. In other words, what are you doing all of this for?
I just know there won’t be ANY better motivation to actually go and do this, than if you envision your perfect lifestyle in your head, and know that every purchase you make will either bring you closer - or further way - from actually reaching that goal.

[EddyYang]

2009: 'Broke'
2019: 'Financial Minimalist'

[ChaunceyS]

The dollar to fun ratio.. That reminds me of my dad telling me to think of everything I buy as how much time I had to work to get that.
Is that shirt and pants worth working 4 hours? No? Don't buy it. Is that hockey game worth 4 hours of work? Yes? Buy it.

[wolfofdubai]

There are two ways to be rich:

*One is by acquiring much, and the other is by desiring little*

[SeanLei]

*Many people still don't understand minimalism.* It's not about owning few things or sleeping on the floor. It's about identifying what you value so you can remove the rest. You can SPEND EXTRAVAGANTLY on the things you love, and still be a minimalist.

[kevins]

Me: ok kids listen up, we are going to be financial minimalists!
My kids: 🧐
Me: Let's go to Walmart to play with the toys and put them back before bedtime

[Adran]

1. Cut back what you dont need
Me: Looks at the bongo
Bongo: Looks back at me

[CindyDeskins]

I love the “Would you rather have cash” idea! I’ve honestly never tried it when considering a purchase. I wait 24+ hours; I try to find cheaper options; I try to make something myself, etc., but this is a new perspective for me. Definitely will ask myself this going forward. Thank you - great video!!

[visenya]

"Would you rather take the cash?" - I love this. From now on I'll use this everytime I want to make a purchase.

[jetstream_GS]

Noun, Economics.

Opportunity cost:

The loss of potential gain from other alternatives when one alternative is chosen.

[KyleSulkar]

I really appreciate the straightforwardness of this video. A lot of the online culture nowadays points towards extremes for the shock value and I truly think it’s toxic for many to be consuming/applying to their life. You broke this down perfectly, as always. Thanks Graham!

[gregorydavids]

For many minimalists, the philosophy is about getting rid of excess stuff and living life based on experiences rather than worldly possessions.
But Having Worldly Possessions and also Experiences is cool. You can have both by just being a good investor.

[bowedonut]

Minimalism is about spending your money and living your life the way that makes you happy. It’s not about living in a box (unless that makes you happy). Graham, you’re a minimalist plain and simple. Great video and thumbs up as always 👍🏼

[wolfofdubai]

You have succeeded in life when

*all you really want is only what you really need.*

[hunterrodriguez]

Since watching Graham's channel I have been inspired to spend less and save more. I'm glad that other people are willing to put money away and not fall into the trap of living beyond their means that our society pushes so hard.

[michaelbrown]

Graham, thanks for saying "live below your means" I learned this years ago from my older brother, I shared this same quote with my friends and they think I'm crazy. I'm all about being a minimalist.

[tobyknapik]

Graham I really enjoyed watching your surprise appearance on millionaires versus minimum wage. I was glad to see you following up with other peoples comments and redirecting the conversation into a positive, alternative point of view. I think your comment was probably the most noteworthy in regard to the chase rather than the purchase of your dream Lamborghini. It’s always cool seeing some your wisdom from your channel show up in other channels you are a guest for.

[ericvulgate]

eating out of garbage cans is free, but i enjoy the ambience of a grocery store.

[sassy]

We are kindred spirits! I always treated my money like this, but I like the term financial minimalist vs cheap! I make a decent salary but I never once, wanted to spend it all to be flashy but I put my money towards bigger things that mattered to me: emergency savings, vacation, etc. It's just about getting the most bang for your buck. Thanks for sharing your knowledge to the new kids once again, hopefully they listen!

[eashansamak]

This might be one of your best videos yet, Graham! A lot of this advice framed in terms of money can be extended to nearly every other part of life (fitness, relationships, career).

[GoddoDoggo]

THANK YOU, GRAHAM!
I know how difficult it is for you to say "it's okay to spend _some_ money" for things like fun and entertainment, but this is just how most people enjoy life! Gotta speak the language! Great video, 10/10