Have you ever felt exhausted from chasing the dollar just to be able to buy things you crave but don’t really need? Working 24/7 to spend your weekends cleaning all the clutter you live in and not having enough time for doing what you want to do?

If you feel like your possessions are tying you down, financial minimalism will help you evaluate your lifestyle choices and compare your habits to your authentic needs.

Read on for a brief guide on using financial planning for shifting from a consumer-driven life to a life of purpose.

Set Your Goals

The first step in designing a financial plan, especially the minimalistic one, is finding your purpose and setting your goals.

People wake up each day to go to work and get through their day. Rarely do they stop and ask themselves why they work or what type of lifestyle their work supports?

Apart from knowing your expenses and income, it’s essential to have a clear vision of what you want in your life, set your mid-term and long-term goals, and use your money to achieve them. This is the first step in working with a financial planner like Opes.

Do The Budgeting

The logic of financial minimalism is simple – if you don’t need something to survive, it’s excessive, and you should think twice before spending your money on it.

So, begin with determining how much money you need to survive. Do the calculation: write down all your income, and then minus your fixed expenses – such as housing, transportation, food, health insurance, medical expenses, etc.

When you’ve finished this calculation, you will have a clearer idea of how much you’re spending not on your needs but your wants. And let’s face it, wants can often be pretty superfluous.

Be Money Conscious

Even the fixed expenses are worth reconsidering, particularly the subscriptions. A recent survey has found that an average consumer spends $273 on subscription services. It also determined that consumers underestimated how much they cash out each month until they’ve sat down to calculate it.

Technology has made life easier, but it has also made it possible for us to forget when, where and what we pay for.

So, write down all the subscriptions you currently have and calculate how much they cost you. Are there some you can get rid of without even noticing? You can use that money to reach some of your more meaningful goals.

Spend Intentionally

Target your financial resources towards your goals and values only. This way, you will ensure there is no reckless spending and will be able to invest in what’s aligned with your needs and values. Question each potential purchase– what purpose does the item serve? Do you really need it? Does it match your needs, goals, and values?

Get Out of Your Debts

One of the basic requirements of financial minimalism is to get out of your debts. Even though this is easier said than done, you can achieve it if you make it your priority goal and work hard to reach it.

In the meantime, if you have a few loans, consider consolidating them into a single one. Having to track all the loan payments can be a nightmare sometimes. You can make it easier for yourself if you have just one monthly payment to make.

Don’t Procrastinate but Invest

Evaluate your investment options based on what best fits your needs and finances. Even if it’s as little as $25, you can put your money to work, and the sooner you do it, the better.

This may require a little work initially, such as talking to the right advisor to determine your plans, risk tolerance, etc. Once you’ve accessed your options, set up automatic withdrawals and let a professional make all investing decisions.

Have a Single Bank Account

Having multiple bank accounts indeed has its benefits, but it can be complicated and even overwhelming. If you have accounts at various banks, choose your favorite one and close the others. This will make your transition to a minimalist lifestyle easier. You will have only one account to check and one bank to visit.

Financial minimalism is one of the best ways to escape all the stress and worries caused by consumerism, achieve your goals, and align your life with your values and purpose.