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Have you been researching a minimalist lifestyle? Intrigued but not sure you want to make the switch? What is holding you back? I have a few stats for you that may make you think otherwise:
- Total US household debt is $13 TRILLION – that’s TRILLION!
- 15% of Americans are going hungry every single day.
- 43% of Americans spend more than they earn in a year relying on credit cards for the difference. 43%
- Of the 43% of Americans carrying credit card debt, the debt amount per household averages $15,422.
- The US Census Bureau reports that the median household income is actually 8.9% less than it was in 1999.
- In November 2012, 3000 people in the city of Chicago stood in line as long as 4 hours to apply for less than 60 jobs.
Do those numbers scare you as much as they scare me? They actually terrify me and I am EXTREMELY grateful that I decided to move into a minimalist lifestyle when I did. Living minimally as I do now has allowed me to focus 100% on my own businesses and not worry about finding a job that works you to death while not paying you what you are worth. When you think about the amount of time you put into working for someone else and the fact that time is not renewable, you tend to view things differently. Bottom line? My time is extremely valuable and I’m making sure it works for me.
Our economy is a huge mess – there is no doubt about it. However, taking control of your finances in your household puts you significantly ahead of where most Americans are. So where do you start? This list can help you to get control:
- Create a “contingency” fund that covers any need that may arise such as your heating system needs to be repaired to unexpected auto expenses. Put 10% of your income into a savings account or into a jar in your home every time you receive income from ANY source including your paycheck or even if you have a yard sale. By doing this you will always be able to handle any unforeseen expenditure.
- Pay off your credit card debt and get rid of your credit cards. Start with the card with the lowest balance, pay it off first then add that amount to the payment you’ve been making on the next card. Continue until all credit cards have been paid in full then keep it that way.
- Do not buy ANYTHING you don’t need while you are getting your household finances back on track. This includes going out to eat, movies, clothing, trips, cars, and the list goes on and on. If your car starts each time you get into it, continue maintaining it and keep it running while putting the money you would have spent on a car payment into savings.
- Do not buy a house larger than you need or better yet? Stick with your starter house. Your kids will grow up and move away and you will find that even a starter house is too big when they’re gone and it’s just you and your hubby. If I would have stayed in my little starter bungalow that I bought in the 90’s, it would have been paid off for many years and I wouldn’t be dealing with paying off the mortgage on the house I am in – the last debt I have.
Think about everything before you purchase it or better yet, wait a day or two to really determine if it’s something you need. 99% of the time, you will find you can live without it and that puts you that much closer to being truly free.
Blessings,
Denise
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