Financial Minimalism [2 Years WITHOUT Buying Anything]

I spent 2 years without buying anything. In this video I talk about the 8 things I learned.

I spent two years of my life living in a small country in South America called Ecuador working for the Peace Corps. During that time I was practicing something I call "extreme financial minimalism" because I was being paid about $570 a month. After rent I has $370 to spend on my necessities and I didn't have enough money to purchase anything outside of the necessities those years.

Financial minimalism is intentionally spending your money in a way that brings value to your life. Extreme financial minimalism is only spending your money on your necessities. Due to the lack of money during those years I was able to learn a lot about money, budgeting, and life. In this video I talk about 8 lessons I learned while I was living in "extreme financial minimalism."

1. You appreciate more with less

In the United States, we live in a culture of abundance. We can have pretty much anything delivered to our doors without leaving the couch. The special thing about living on such a small budget is that when you get a "luxurious" item like a meal at a restaurant, you really appreciate it because you don't have it often. Often, the more you have in your life, the less appreciation you will have for it because the thing stops becoming a rarity.

After living at this level, I still try to limit myself to things like eating out or buying stuff because I know the more you do it, the less you appreciate it.

2. It doesn't take much to be happy

In those 2 years I learned that all you really need in life is food, water, and a roof over your head, everything beyond that is optional. In the United States we're often told from a young age to search external for happiness through consumerism, but once you have your basic life needs met, happiness will be found from within.

I save 60% of my income now not because I am trying to save money, but because I just know that a new phone or a new car will not make me happy.

3. Happiness comes from community

When you can't afford anything and are living in a very simple way, you don't have the option to try to find happiness from consumerism, so you start learning that happiness comes from community. Since I had so little money in those 2 years I took walks around the city and chatted to people on the street. Those little conversations throughout the day really contributed to my mental health because it made me feel a part of something bigger: a community.

In the US, we have made life so convenient through services like Amazon, Uber Eats, and grocery delivery that we are not only spending more money, but we are losing community through these services.

4. Less money spawns creativity

Since I was making $570/month, I could not afford to furnish my apartment. So what I did was I went to the local market and bought a bunch of fruit crates and built my furniture. The lack of money in my life made me become extremely creative on how I lived.

As you start to make more money in your life, you might opt to go the easier route because you can afford things, but I think it is important to strive for the creative route instead of the easier route because it leads to a richer, more creative life.

5. Being poor is not the same thing as being in poverty

Living in a "developing country" you really begin learn the difference between being poor and being in poverty. When you're poor you just don't have any money, but when you're in poverty you have a mental illness. You're constantly in a state of fear of money, so know that if you don't have money now, you can always break out of it because you're just poor...and being poor is not a life sentence.

6. Time is the most valuable asset

I was cash poor in those two years, but I was extremely rich in time. I finished my job before lunch and had the rest of the day to do what I wanted with my time.

In my videos I have mentioned that you need to define "enough" in terms of money because you can always be making more money in life, but you are limited to how much time you have. Money is in abundance in life, but time is limited.

7. Money doesn't matter

Money doesn't really matter if you have it, but if you don't have it then it matters a lot. Debt is the modern form of slavery and can make it impossible to catch up financially. However, when you have money it will make you feel more secure and comfortable, but beyond that you are going to have to find meaning in other things. Money matter to a certain extent, but when you have money it doesn't matter as much.

[ElAgustin]

Could you spend 2 years without buying anything?

[beverlys.peacockmccranie]

Really enjoyed this! As a divorced woman with very little money, I had to learn to be content with very little. I have learned that it does not take much to be happy! Sitting in a swing outside on a pretty day, or watching the humming birds fight over the nectar. Doesn't cost a thing but so wonderful!

[stevenliang]

Money isn’t everything but not having money is everything!

[karlabritfeld]

There are so many free things to do. I appreciate spending time with friends and family. Yesterday I met a friend at an art gallery in town. It was free and we enjoyed ourselves. Tomorrow I am hosting a potluck at my house. I already have the groceries to make curried beef and 15 other people will be contributing to the meal. It's an inexpensive way to spend a few hours with friends. No restaurant tab at the end of the evening. We are all old friends who enjoy each other's company. I am a people person. Friendship is priceless.

[kevinfestner]

What rang with me is money and debt. Although my mortgage is low, about 575 a month, I am rushing to pay down my last debt. I look on it as a game. I set small goals.

[Greeneguy]

I am making the least amount of money I have made in 20 years, about $30, 000 a year. 2 years ago I was working 2 jobs making $70, 000 a year and I was broke. Now I am saving about 40 percent. I am doing a job I love where I work about 30 hours a week max. I have a small house with good neighbors who I talk to on a regular basis. The key is I have almost no debt (except for a $300 a month mortgage payment) and am living on about $1500 a month. My car is relatively new, but I have an emergency fund of 5 months living expense, a car repair fund, a business emergency fund and a training budget fund (I run a small business). I live very frugally and budget everything. I am the most content I have been in years. I have a community of friends. Thank you for your vulnerability in opening up your life to teach others.

[lovesspin]

The only reason to have more than you need is so you can share it with others, so in my opinion, being frugal and debt-free gives you the ultimate freedom to bless others if you can earn more money than you need.

[lynnoorman]

This week we went out for a pub lunch to celebrate my son's 39th birthday. Nothing fancy. But I had not been out for a meal with my family for 2 months, since my 6 year old granddaughter 's birthday in February. So it was such a treat! To watch my little granddaughter enjoying her food and chatting to her dad and myself. Golden memories. I felt so blessed! I am frugal otherwise so that I can enjoy such occasions without guilt or worrying about cost. At one point in our lives we ate out quite often and, you are correct, it stopped being special!

[agnesjuhasz]

In Hungary where I live, average monthly wage is 1.000 EUR; actually, now with the war going on, it is even less, more like 800-900 EUR. So our finances are quite different than in the States, and prices almost doubled for food items, not speaking about gas/fuel. I think these will be the years that we will learn first hand, how to live frugally and how few things are really needed. I wish everybody health and patience for these years to come.

[holdencawffle]

great vid. great channel. very underrated.

never say you're poor. say you're broke.

being broke is temporary. being poor is a state of mind.

[marcelazimna]

I agree with the aspect that when you have less your gratitude is much bigger.i agree with everything🍀

[sophialui]

Frugality means Conscious Living in which one does not blindly keep up with the Joneses nor let the media/ societal expectations dictate how one lives.

[jamesreed]

I was overweight so I was fasting and then eating one meal a day I enjoyed the one meal a day more than eating three meals a day.

[jacquelinemcgowan]

Your video works because you have lived it out, your advice is spot on, our grand parents had fewer choices and less money but families were alot better off and a lot happier, i am constantly removing excess from my life and only keeping things i need and like, colleagues at work spend spend spend and the little i have always seems way better, i know myself and whats good for me and they seem on a constant tread mill, i wish i knew what i know now many years ago.

[jesssandra]

A few weeks traveling in ecuador had the same effect on me. I went with a small duffel bag. Enjoyed the people everywhere, the food, the richness of culture, diversity of environment. Used very little money and came back not looking at physical possessions the same way.

[mazdaohio]

I love how you get to the point succinctly and concisely!

[alanbirkner]

I seldom buy anything new. My kids, neighbors, and friends give me clothes, books, craft items, and more. I give away or trade whatever I can't use. I fix
things or help neighbors sort or declutter their messes. I volunteer at a few places, too. Tina, Al's wife

[mindovermatter]

It’s so great to listen to someone talk about money and possessions in a calm and sensible way❤️ To me, a financial buffer is what brings peace of mind so I value that much higher than material things. It’s what keeps me sane in a way, ha ha😉 Love your posts and how you keep things real, hope you can keep it going!!

[oliviaacosta]

My goal is to continue saving and not buying anything I don’t need. It feels great. I’m 54 and I regret spending on items I didn’t need. I finally feel free and secured. I rather enjoy life gardening, reading, painting, and repurposing items around the house paying off my mortgage is priority and saving as much as I can. I advice young people to save money

[AisforAwesome]

Questions around not buying stuff have been rattling around in my head the last few days. I hadn't been able to find much around that idea. There are a ton of videos about people doing a low buy/no buy year, but that's not quite the same as what you are talking about. I'm glad I found this video. I am in the process of trying to empty out a storage unit and get rid of 90% of my stuff, which is quite the endeavor. I'm hoping to set out and travel with only what I need, and my bicycle. I want to get first hand experience with the things you are talking about. I think we all know instinctively that more isn't necessarily better. And external things don't equal happiness. It's so easy to get caught in the cycle of consumption and waste. So thank you for this. Thank you for sharing your story.