The Philosophy of Spending Less, Making More, and Gaining More - The Value Of Minimalism In Finance
Spending more than we have means we must earn more than we spend in order to avoid bankruptcy, which is both conceivable and unavoidable. Because most bankruptcies are the result of negligence, most Nigerians assume that even when their financial situation is enough, it would always be bad. Nonetheless, they continue to maintain this mental state due to their concern of bankruptcy.
But the main purpose of economics is to manage resources. The tenets of economics would be absurd if everyone were rich and their spending binges had no consequences. Consequently, especially for those who have had the anguish of running out of emergency finances in their moment of need, we establish a sense of restriction or a line we cannot cross when it comes to spending.
Not everyone, though, wants to spend less and own more. There are gloomy people in the world; while some are concerned with securing the future of their children, others are content to spend all of their money on enjoyment. This means that people have the option to wear or own their value. Saving, on the other hand, may seem like a mirage to some, which is why some people choose to live in the present, giving the appearance of wealth or a large bank account.
When the things/properties we own don't correspond to this phenomenon, it's undesirable to give the impression that we have wealth. It's also critical to realize that one of the reasons we should lead simple lives is so that others would perceive our finances favorably.
For instance, wearing flashy clothing can raise one's status. While some people genuinely act in this way because they are wealthy, others simply act in this way needlessly for completely illogical reasons. Minimalism is crucial for someone trying to reach a certain financial level until they reach a point when certain financial decisions won't have implications they can't handle.
There are some milestones in life that we may reach and everything will change, but if we do not reach these milestones, we must refine our spending culture and habits to a specific cap. More specifically, I can argue that in the process of learning about personal finance, there is greater room for mistakes that can lead to life-changing experiences.
The Value Of Minimalism In Finance
The truth is that not everyone is aware of the value of minimalism in personal finance. Nonetheless, it is better for us if we choose to be more educated. Because it forces us to monitor and control our excesses, it's generally more advantageous to underestimate how much we're worth. I've had an unusual start to 2023, and one of the disciplines I've mastered so far is reaching certain symbolic milestones before shelling out significant sums of money.
I believe that people create resolutions out of a fear of reverting to who they once were, and occasionally these resolutions serve as reminders for us to stay grounded in reason, particularly when we're veering from reason to irrationality.
Discipline Will Help In a Long Run
People like to gamble with money, which is one of the reasons discipline is encouraged. But even on its own, this is challenging. Discipline is challenging. Because of the emotional instability that money can cause, we often have to practice discipline every day of our life.
This isn't to argue that we should be afraid of spending, but it is true that spending without fully knowing our financial situation can harm us. The goal of personal finance is to avoid bankruptcy, whether it be in an effort to multiply what we have by giving up what we own or by being overly cautious not to lose what we already have. How much money we spend is irrelevant in this journey.