The Importance and Benefits of Staying Within Your Budget
The pandemic brought on a lot of financial anxiety for many people. According to the International Labour Organization (ILO) 114 million people lost full-time jobs around the world in 2020. Some people had to work shorter hours. Some had to accept a pay cut as an alternative to losing the job altogether. In 2021, the ILO predicts job losses of between 36 million to 130 million. Many people realized that they did not have enough savings for such an unexpected crisis and this served as an eye-opener.
Going Minimalist and Living Frugally
A few years before the pandemic, the minimalist lifestyle gained a large following, and it continues to do so. During the pandemic, more people began to see how it made sense to live within your means, spend only on genuine needs, have few but meaningful belongings, and save as much money as possible for emergencies and retirement.
Similar to this is the early retirement movement. Some millennials lived a thrifty life and saved most of their income from an early age. As a result, they were able to retire from corporate work in their 30s. They still continue to work but now have the luxury of choosing to do only the work that they enjoy. They already have enough savings to live on for the rest of their days, still with a frugal lifestyle.
Trying It Out
Try out a no-buy day, week, or month before moving on to a no-buy year. This does not mean literally not purchasing anything but rather buying only what is absolutely necessary. Each one makes his or her own rules on what are genuine necessities. The day-long, week-long, or month-long exercise is a preparation for the year-long commitment. A year is enough time to decide if the lifestyle fits the person and can continue for the rest of his or her life, or not.
A good way of sticking to this plan is to lock away all credit cards and instead go for a debit card application. This will ensure that one can only make purchases based on how much money one has in the account. It means truly living within one's means. The debit card still fulfills the safety and health precautions of no-touch payment systems and online payment.
Beyond Financial Rewards
Living a minimalist lifestyle goes beyond saving money, although that in itself is a huge benefit. People often find, however, that they gain other benefits much more than large savings.
Shunning consumerism is similar to a cleansing lifestyle. Instead of buying new things, they use what possessions they already have, taking more care of them and repairing things, as necessary. Every item is therefore maximized through its life, fully appreciated, and valued. Once it is no longer useful, it is sent to recycling centers.
When people do need to buy something, they choose to buy second-hand. This is cheaper, lengthens the useful life of the item, and saves planetary resources and greenhouse gas emissions from the production of new items. People declutter their homes by selling or giving away possessions they no longer use. This enables others to still use the item and the cycle reduces waste.
Because one intends to use things until the end of their life, people are more focused on buying products of high quality over trendy things. Purchasing becomes intentional rather than an addiction or an attempt to keep up with others.
Living Large in a Small House
With decluttering and fewer possessions, people find that they do not need huge houses. This also aligns with the tiny house movement. Moving to a smaller home frees up funds to add to savings. A smaller house also has lower maintenance costs. Some people go even further by setting up solar panels to provide power either fully or partially.
They enjoy the streamlined space that is easy to clean and keep tidy. There is a place for everything but there is no room for excess. People say it lowers stress levels and gives them a feeling of freedom. Their sense of self is no longer tied to their material possessions, including their home.
Many proponents of tiny house living also support backyard micro-farming. With current technologies, including hydroponic gardening, it is possible for them to grow their own organic vegetables and dine on a fresh harvest every meal.
These developments are not new inventions, but their synthesis is a product of necessity brought about by the pandemic. We can say that the pandemic is the mother of new solutions.