We’ve recently witnessed increased prices in everyday essentials like food, gas, utilities and healthcare. It’s so important that we consider simplifying our spending. Before spending, consider asking ‘how much is enough?’ Simplifying your spending builds a financial cushion, helps you to live below your means and leads to less clutter. Here are a few ways to begin simplifying your spending:
$ Save More
Saving more requires changing our financial mindset and habits. You are able to save more when you reduce impulse purchases and choose to use what you have before buying more.
–Establish a budget to stay within your spending limits; define wants vs. needs
–Take inventory of what you have–food, toiletries, clothes, cleaning products–before buying more
–Declutter and sell unused items around the house on sites like Poshmark and Facebook Marketplace
–Review bank statements and budget to cancel anything that is unnecessary
–Automate your savings–set-up an automatic transfer to your savings account on payday.
$$ Spend Less
Constantly chasing sales or “wants” keeps you in a loop. Simplifying breaks that cycle and gives you freedom from debt and freedom from clutter. The next time you are shopping, take a moment before getting to the check-out and ask: do I really need this or is this an impulse purchase? A little self reflection goes a long way to not only saving you money but simplifying your life. Remember when you are intentional about reducing clutter and living with only those things loved, used and needed, it provides you the freedom to say YES to experiences over stuff!
$$$ Invest More
Every dollar saved provides you a stronger emergency funds cushion, an ability to reduce debt and a greater ability to invest. Did you know the average woman’s 401K balance is 27% lower than the average man’s balance?* The contributing factors vary from wage gaps to career interruptions–caregiving for children and aging parents. However, we have the ability to decide to spend less and invest more. Begin by seeking advice from a financial planner and when possible max-out your employee 401K match–don’t leave $$$ sitting on the table.
When you spend with intention you don’t buy things that don’t serve your goals and you gain peace from living simply. Remember SIMPLIFYING doesn’t mean deprivation–it means clarity. Simplify your spending; spend mindfully and intentionally.
*Source: Vanguard, Fidelity and T. Rowe Price 401K Updates (2024 estimates)
