MINIMALISM : Beyond decluttering material possessions

A defining feature of the minimalist lifestyle is purging your material possessions and living only with the items that, are necessary, adds value to your life or  brings you joy. The concept ‘less is more’ is predominant in minimalism. The common practices of minimalism include getting rid of duplicate items, reducing the number of items you own as a whole and having a capsule wardrobe. Decluttering your physical possessions is a basic feature of minimalism. 

Minimizing your possessions to the basic essentials is only one side of minimalism. Minimalism is a way to simplify your life so that you have more time to do the things that you enjoy and love. Principles of minimalism can be adopted to other areas of your life such as your relationships and how you handle your money. 

I would argue that, decluttering your material possessions is the easiest part of adopting minimalism. It is easier to get rid of that extra blouse in your closet, than to remove yourself from bad relationship. It takes less time and less effort to donate that extra  handbag you have not used in a year, than it is to become a conscious consumer. Some of these changes will take a lot more time, effort and mental energy to implement on a day to day basis. However, they will be more beneficial to you, your mental well-being and your finances in the long run. 

Minimalism and Relationships 

Thinking of 'Relationships' from a minimalist’s perspective can be somewhat controversial. Applying minimalist principles in to your relationships certainly does not mean that you cut off all contact with your family and friends and live alone. Minimalism encourages you to surround yourself with what brings you happiness and joy. It is obvious that our family and friends contribute a lot to our physical and mental well-being. As the famous saying goes you are the average of the five people that you spend the most time with. This means your relationships play a large role in  your health, your finances, the quality of your life, and your job performance. 

Today in the era of Social Media, we have the illusion of having hundreds, if not, thousands of friends. However, it is important to have a close circle of family and friends who you can trust and look for advice. We all have only 24 hours in the day. It is important to prioritize who we spend our time with. We can make a conscious choice to spend a majority of that time with people who are positive, kind and help us be the better version of ourselves. Spend time with people who inspire you, motivate you and make you happy to be around them. Listen to people who tell you the truth, even if you are not willing to hear it. Try to avoid people who are constantly negative and drains you of your energy (or at least limit your contact with them). 

Minimalism and Money 

The relationship between minimalism and money  can be described very simply as 'if you don't spend on what you don't need you will be able to save more money for things and experiences that you actually add value to your life'. Being a minimalist changes the importance that you attach to money and material possessions. Money is not the sole factor you consider when deciding on a career. This does not mean that someone leading a minimalist lifestyle, has no interest in earning money or their job or advancing their careers. Minimalists will focus on building a career from what brings them joy and helps them improve their skills. They look for opportunities that provide them with the ability to do what they love. They take on challenges to improve themselves and overcome their fears and limitations. Minimalists like spend on experiences rather than material possessions. 

Once you decide to limit your material possessions to what is essential, it is easy to buy higher quality items and, take care of what you already own. You become content with what you own and you don't feel compelled to buy the latest item on the market just because everyone else owns it. You are not driven by the latest sale or bargain. You don't feel the need to keep up with the latest trend, simply because you are aware that you do not need it as it does not align with your conscious lifestyle choices. You become a more conscious consumer and evaluate what you buy based on the value it can add to your daily life.  This in turn helps you to save and invest more and to build a better financial future.

EMERGENCY FUND - the importance of a Financial Safety Net

What is an “ EMERGENCY FUND ”? 

An emergency fund is a stockpile of cash that you have saved for sudden, unexpected or unforeseen financial expense that comes up in your life. The defining feature of a financial emergency is that it is difficult to predict. You cannot be certain when or if  such an emergency will arise and how much it will cost. These emergencies include a sudden illness, an accident, a lay off or a pay cut or a death in the family. A financial emergency is different from expenses that occur on a day to day basis. It is also different from expenses which occur less frequently such as maintenance costs/replacement costs of vehicles and household equipment. Having an emergency fund helps you to cover the unexpected expense without having to go in to debt. 

How much should you save? 

The answer to this question will vary depending on your personal financial situation, the type of job you have and whether you have dependents or not. Typically, financial experts advise you to save at least 3 to 6 months of expenses in your emergency fund. 

However, if you have a family or elderly parents whom you support, (or sometimes even pets)  it is advisable to save more. If you work in a field where it is difficult to get a job or have fewer vacancies or requires specialized knowledge/ certifications and you know that you maybe unemployed for a longer period time, it is advisable to save at least 8 to 12 months of expenses in your emergency fund. It is important that you have the emergency fund in an account which has high liquidity. It is essential to have easy access to your emergency fund in case you need it. 

Importance of having an Emergency Fund 

The current unpredictable global economic situation has demonstrated to us, the value of having a stockpile of cash to cover emergency situations. Many of us  face an uncertainty about our jobs. The best thing about having an emergency fund is that it gives you peace of mind. Knowing that you have a significant amount of money in savings for such  emergencies, gives you a great deal of peace of mind. It takes away the stress related to coming up with money to pay for daily expenses and helps you to find the best solution for the problem at hand. Having an emergency fund in place will make any financial emergency in to an inconvenience instead of turning it in to a complete financial disaster. If you do not have an emergency fund you will be forced to borrow money to cover your regular bills through credit cards or pay day loans. The high interest rates attached to these debts will make it even harder for you to get back on your feet financially. An emergency fund will also help you maintain your standard of living, give financial stability to your family and stay current on your bills. 

How to save money for an Emergency Fund 

• Live a minimalist lifestyle for a few months until you save up enough money for an emergency fund. 
• Set up an automatic transfer from your salary to a separate emergency account. 
• Sell unused items that you have around the house online. 
• Take up a side job for a few months until you save up your  an emergency fund. 
• Savings challenges – eg:-Saving coins, 52 week savings challenge 
• Take additional hours at your job and directly put that extra money towards building your emergency fund. 
• Save tax refunds or bonuses from your job 

It is important to understand that it will take some sacrifice and discipline to save at least 6 months of expenses. However, these sacrifices will be temporary, and the benefits of having an emergency fund will greatly out weight the minor inconveniences that you will have to face in the short-term.

11 SIMPLE STEPS ON MONEY MANAGEMENT

BASIC STEPS TO CREATE A BUDGET

Disclaimer - It is important to note that the above tips are my personal views and opinions on money management. These tips should not be considered as  professional financial or legal advice. This information is  general in nature, may not be suitable to your individual, financial or legal situation. Always consult a competent and qualified Financial Professionals and a Legal Professional before you chose any investment, and, do all  necessary research and understand the risks involved  before you purchase any financial product.

HOW TO SPEND THE LOCK DOWN PERIOD IN A MORE PRODUCTIVE WAY

Many countries around the world have ordered lock downs of cities due to the ongoing global pandemic. Many states have issued stay at home orders to their citizens and some of us have been given the opportunity to work from home. It is a difficult time for us as there is a lot of uncertainty about what the future has in store for us. 

However, this lock down/ curfew period has also given us a gift. That gift is “TIME”. It is easy to spend your time these days scrolling through social media mindlessly or wasting a lot of time and mental energy by constantly checking updates of the number of patients worldwide. Therefore, it is important that we make a conscious decision to use this valuable time in a more productive manner. 

Here are my thoughts on how to spend the lock down/curfew period in a more productively and efficiently. 

Give priority to maintaining your physical and mental health. 

Maintaining Your Physical Health- When you are at home it is easier to fall in the habit of stress eating or eating when you are bored or forgetting to exercise because you can’t go to the Gym. Take steps to incorporate exercise into your daily routine. Try to be active and move around the house instead of sitting down in front of the computer or television. Eat a well-balanced meal and stick to your regular meal times. Drink plenty of water. If you have to take any medications for any illness take them at the appropriate times as prescribed by your doctor. Follow the guidelines set out by the medical professionals if you are going out to a public place. 

Maintaining Your Mental Health- Stick to a reliable source to gain information about this virus and avoid information overload. Being anxious is not going to help anyone. Take time to relax. Read a book and meditate for at least 10 minutes a day. Focus your mental energy on things you can control and learn to let go of things you cannot. Appreciate and be grateful for all the things you have and for your family’s health. Stop worrying about what you could have done differently in the past and focus on making the most of the present. 

Practices to help you improve your life

Create a household budget as a family 

Today, many of us are facing a hard time when it comes to our Jobs and our businesses. There is a lot of insecurity about our finances. It is vital that you take decisions about managing your finances as a family. Taking time to create a household budget will help you prioritize your goals and help you to talk through any financial worries. A household budget will help you navigate these times without causing disharmony among family members. It can also help you to cut down any unnecessary costs. This will also provide you a perfect opportunity to teach your children about money management. 

BASIC STEPS TO CREATE A BUDGET

Teach your children essential life skills 

Most schools have been closed and your children are also stuck at home. Although it may be tempting to let them binge watch television all day while you work from home, it is important to maintain a routine for them. Help them to catch up on a subject that they are having trouble with at school. Instead of allowing your children to surf the internet all day teach them how to cook, how to manage their finances, and how to stay organized. These skills will help them to become well-adjusted adults one day. 

Life skills every teenager and young adult needs to learn

Spend quality time with your family 

The best thing about these lock down period is that we have a lot of time to spend it with your loved ones. Make this time count. Have a family game night. Talk to each other and share your worries and frustrations.  Talk to your children and let them know that you are always willing to listen to them and you are there for them. Get in touch with your relations by phone or through social media. Take out the family albums and share stories about past memories. 

I hope that each and every one of us will be able to make the best of our time at home and become closer  as a family

BASIC STEPS TO CREATE A BUDGET

Creating a household budget generally takes up a lot of effort. However having a budget helps us to set our financial goals, control our spending, pay off our debts faster and increase our net worth. If you are able to set up your household budget you will be able to control your money instead of your money controlling you. A budget gives you a detailed plan on how you spend your money and how much you save. A budget helps you be disciplined about your money.  Start creating a budget with your very first monthly salary and continue with this practice, and very soon you will be able to achieve financial stability. 

A budget will give you peace of mind because it helps you come up with a clear plan to pay your monthly expenses and debts. You will not be constantly worried about missing the due date of a bill or have to check your bank balance when you are at the checkout line at the supermarket wondering if you have enough money to cover your purchases. 

Unfortunately, many Young Professionals today are unable to achieve financial stability even if they earn very high salaries and hold high level jobs due to the lack of planning. Setting up a budget, if done accurately and consistently each month, will help you to become more financially stable. 

How to set up a budget 

Step 1- Decide what type of budgeting system will be most suitable for your lifestyle. 

There are many different budgeting systems out there. Some are computer based and some require only a pen and some paper. Choose which system is most suitable for you. The budgeting system has to align with your future financial goals. It has to be a system which can adapt to your lifestyle and be easy to use. It has to be convenient and not take up a lot of time. It also has to be an uncomplicated system that you can maintain for a long period of time without undue effort. A household budget is extremely personal and unique. A system that works for your colleague or your sister may not necessarily be suitable for you as each individual and each family has different financial goals and financial priorities. Therefore, choose a budgeting system that is simple, that is easy to maintain and that is in line with your financial goals and priorities. 

Step 2- Calculate your monthly income 

Ideally you must have more than one stream of income. Your salary from your job is your main source of income. It is essential that you know your monthly take home salary. Your monthly income may also include any bank interests, dividend payments, rental income, annuities which comes to you on a monthly basis. 

Step 3- Write down a detailed list of your expenses 

Tracking your expenses for 2 to 3 months will help you come up with a more accurate list of expenses. It is important to record what you have paid for whether it is by cash, credit card or online direct debit from your current account. It is also important to calculate the monthly amount of expenses that occur annually such as council taxes, income tax and vehicle revenue licenses. Being as accurate and as comprehensive as possible in recording your expenses is key to setting up your budget. 

Step 4- Create your monthly budget 

After calculating your monthly income and your monthly expenses write down your monthly budget. Write down the due dates of the bills to prevent getting a late fee. Once you have set up an estimated budget make sure to track all your income and expenses monthly and adjust your budget accordingly. Make sure that you prioritize your bills such as mortgage/rent, utilities, medicine and food before your discretionary spending. 

Step 5- Cut out unnecessary expenses and automate savings 

Living below your means is the easiest way to achieve financial  stability. Once you have created a budget it is easy for you to see where you are spending unnecessarily. What you consider necessary is completely unique to you. However these days you will notice that you do not need a lot to live a happy and healthy life. Think carefully and remove all unnecessary expenses from your life. Once the budget is set up it is easy for you to determine how much of your salary that can be saved. Set up an automatic deposit the said amount (even if it is as low as 2 to 5 %) to a separate account which you don’t have easy access to and let that money accumulate over time.

11 SIMPLE STEPS ON MONEY MANAGEMENT

Disclaimer - It is important to note that the above tips are my personal views and opinions on money management. These tips should not be considered as  professional financial or legal advice. This information is  general in nature, may not be suitable to your individual, financial or legal situation. Always consult a competent and qualified Financial Professionals and a Legal Professional before you chose any investment, and, do all  necessary research and understand the risks involved  before you purchase any financial product.

Does Minimalism help you to face difficult times better ?

We all go through difficult times in our lives. Major illnesses, loss of a loved one, loss of a beloved family pet, being fired from your job, accidents, and financial emergencies all affect us adversely. We all respond to and handle these situations differently. Certain situations which may seem like minor inconveniences to certain people may appear to  some as devastating  circumstances. 

Adopting a minimalist lifestyle means that you intentionally choose to keep material things that  are essential or things that add value to your life or things that bring you joy. You also make a conscious choice to remove anything material that is cluttering up your life.

How does minimalism help you to face difficult times better? 

Minimalism helps you to identify your priorities 
As a Minimalist you intentionally choose your material possessions. Similarly, you also exercise caution and make conscious decisions about people you surround yourself with and the activities that you spend your time on.  
When you are going through a difficult time it is very difficult to function as you would under normal circumstances. The reason is that a lot of your mental and physical energy is spent on dealing with the problem at hand. It becomes very difficult to focus on daily tasks. 

Minimalism helps you manage your time better. Minimalism helps you to identify your top priorities and the tasks that require your immediate attention. It also gives you permission to put certain tasks which are not as  important  in the back burner and focus all  of your energy on dealing with the difficult situation. In turn, it improves the quality of your  life even during difficult times
Less stuff, Less clutter, Less chores = More time  

Being a minimalist saves you a lot of time on household chores and simplifies your life. A minimalist lifestyle involves surrounding yourself with a few material possessions which are essential and adds value to your life. Decluttering what is not essential frees up a lot of space in our homes. This means chores such as cleaning, laundry, cooking  and organizing  takes a lot less time and effort. Time is an invaluable asset. It helps tremendously when you have an extra few hours to deal with the problematic situation you are facing, instead of performing some mundane chores. 

Minimalism helps to clear your mind and focus only on the things you can control. 

Being a minimalist has a significant impact on our mind. It helps us to clear our mind and be present. This is an essential life skill that every adult needs to learn.  It helps to  remove the unnecessary emotional stress as well as toxic people from our lives. Minimalism helps to focus on what you can control. If your loved one is sick, unnecessarily worrying or overthinking, is not going to help either of you. If you can clear your mind, you can focus on finding the best treatment option for them. You can't control the illness, or the time someone will take to recover,  but you can control how you react to the situation.  Focusing on only what you can control helps you gain clarity and helps you take your conscious choices about the situation.

Minimalism helps you  save money

When you stop spending on unnecessary stuff and buy only what is essential you can save a significant portion of your monthly income. A minimalist lifestyle helps you save money. If you have saved up money for an emergency to cover your expenses for a few months, this will help you take away the additional stress relating to your daily finances. Even if your problem is  not related to your finances, having a decent amount of savings will definitely help you face difficult times better, and handle the situation better  without being emotionally strained by financial worries.

My previous posts on minimalism :-

BENEFITS OF A MINIMALIST LIFESTYLE
Advice for aspiring minimalists
My Thoughts on Minimalist Living

Importance of Self Care

When the New Year rolls around we all resolve to take better care of ourselves. Sometimes self care can be seen as being selfish. Putting your needs ahead of, any one of the hundred of things on our never ending  to-do list, just feels wrong. In the fast paced modern society even taking ten minutes to yourself may feel like the precious time that could be spent doing something more productive or useful. When there appears to be some urgent chore to finish  or deadline to meet or a meeting to attend, spending time on Self Care may seem like a waste of your valuable time.

However, Taking time to take care of our physical and mental health should be a priority in our lives. It is difficult to argue about the necessity of self care in the modern society. No one else will be able to take better care of our bodies and our minds than us. Taking steps to incorporate simple self care routines in to your daily  life may help you to avoid major health problems in the future. Your health become your greatest asset as you grow older.
No one is more capable of taking care of yourself than you. Therefore it is extremely important that you prioritize self care, even if you feel like the busiest person in the world .    

• Take care of your physical health

This is the number one thing you can do when it comes to Self Care. Taking care of your physical health  includes the most basic self care practices and habits such as eating  a balanced diet, drinking  plenty of water, taking any medication that you need to take for your illnesses at the correct time, getting 6 to 8 hours of sleep every night, including some form of physical exercise into your daily routine, and prioritizing annual medical checkups and dental visits. Although these habits are obviously extremely beneficial to our health, it is pretty common to see these basic self care practices being easily forgotten. Therefore, make a conscious decision  to include good health practices into your daily routine this year.

• Put yourself first 

Although, this may sound incredibly selfish at first, there is merit to putting your own needs first. You must be in  good physical and mental health, to be a good parent, partner or a productive employee. If you are sick or stressed your ability to take care of your family and to do your job properly becomes compromised. No one can or is going to make your interests or needs their priority. Only you can do that. It is crucial that you take the time to prioritize the things that are important to you and your mental health even if you feel like that  you don't have a minute to spare for your needs. Take time to relax and take active steps to deal with any form of stress. Meditate or do yoga. Listen to classical music.  If you are a religious person take time to pray or do a bible study or anything that will help you connect with your faith. Adopt minimalist habits and simplify your life Take a day off  from work or even go on a solo weekend get-away.  Even if your family will find it inconvenient at the time, they will surely be grateful that you took the time to take care of yourself in the long run.

• Set up a plan to get your financial life in order

Stress relating to finances can lead to many mental and even physical problems. This year take time to come up with a plan to put your finances in order. This will include coming up with a debt repayment plan, saving up money for emergencies, and planing for your retirement. If you are thinking of asking for a promotion or a changing your career path, consider obtaining new educational qualifications or attending training sessions and improving your skills.  

Simple Tips on Money Management

• Make it a priority to take care of your mental health 

It is very important to prioritize your mental health. Take steps to reduce stress and anxiety in your life. Seek professional or medical help if you suffer from any form of  mental illness. Don't hide the fact that you need help to deal with an illness because of the stigma attached to mental health. If you require to take medicines to deal with depression or anxiety make it a priority. Create a habit to take the medicines as prescribed by your doctor at the correct time. Talk to a therapist or a mental health counselor at your school. Avoid or (if possible) completely cut out toxic relationships from your life. Surround yourself with people and things that make you happy. Be with positive people who support you and make you feel energized, instead of people who are constantly negative and drain your mental energy. Put your needs and mental health first. Life is way too short so don't waste it on people you don't deserve you or treat you with the respect you deserve.

How to reduce stress in your daily life 

HOW TO IMPROVE YOUR FINANCES IN 2020 ( the simplest steps you can take)

• Take full responsibility of the financial aspects within your control

In life some  things are completely out of your control. A person cannot  accurately predict  a  job loss, an accident or an  illness. Stock markets can crash or a war on the other side of the world may send your country's economy in to a tailspin. Income inequality, under employment and lack of growth opportunities within the organization have been affecting employees around the world. These circumstances are clearly out of your control and there is nothing we can do about it. It is pointless to  spend your energy worrying about them.  

However, it is very important that you take full responsibility of every thing else within your control. It is important to hold yourself accountable for the choices you make concerning your money. How much you earn, spend, save and invest are generally areas you can control. You can make a choice to save a percentage of your income or you can make a choice to spend  more than you make on frivolous things and fall in to debt. Either way the choice is yours. If the company you are working for is laying off the workforce, you can become proactive and start to look for a job now instead of waiting until the day you are fired. Again, the choice is yours and the consequences of those actions are also yours to endure. 

It is crucial that we take full responsibility about how we manage our finances. Instead of worrying about what you cannot control, you can take positive steps to safeguard your finances.  Setting clear and precise financial goals, setting up a budget, creating a debt repayment plan, saving an emergency fund and funding your retirement account early will set you up for a better  financial future.

• Exercise self control and be disciplined 

For some of us, the simple reason that we fail to achieve any financial stability, even if we have well paying jobs, is that we lack self control. It takes discipline to spend less than you earn and to create wealth. Paying your bills on time or saving money for investment takes discipline. Sticking to your budget takes self control. Your finances won't magically improve if you don't take steps to curtail your unnecessary spending  and pay off your debts.  You must be disciplined to follow through with a debt repayment plan. You must be aware of your spending habits and be able to identify the good from the bad. Even if you earn a high income, if your expenditure is too high you won't have any savings at the end of the month. Exercising self control will allow you to control your impulse spending and prevent you from falling in to credit card or personal loan debt. Knowing when to say no to yourself  and learning the difference between what you can and cannot afford will greatly improve your finances. Make a plan, in 2020 to pay off your debt, or increase your retirement savings or to build a emergency fund and follow it through with conviction. 

• Educate yourself

Lack of financial education is one of  the main reasons a regular person fails to  achieve financial independence. Personal finance is rarely taught in schools and most of us rely on our family to give us advise on finances. Even then, there is hardly an open dialogue  about financial matters, with many people being reluctant to share details. Discussions  about money are  still considered to be a taboo.  Fortunately, the internet and public libraries give us  access to  tools and resources and the opportunity to improve our financial education and, learn about budgeting, savings and investment options.  We have to be willing to spend our time to learn and understand the basics principles of personal finance. It is always important to continue learning, and keep up with the current financial situations. In 2020 resolve to improve your financial literacy and to manage your money better to create a better financial position for you this year 

11 simple steps on money management

Disclaimer - It is important to note that the above tips are my personal views and opinions on money management. These tips should not be considered as  professional, financial or legal advice. This information is  general in nature, may not be suitable to your individual financial or legal situation. Always consult a competent and qualified Financial Professionals and a Legal Professional before you chose any investment, and, do all  necessary research and understand the risks involved  before you purchase any financial product.