Here’s How Much Money You Can Save by Becoming a Minimalist

Minimalism isn’t just about decluttering your home or having a sleek, modern aesthetic. It changes your entire life.

By becoming a minimalist, you could save $24,630/year.

It’s true. One of the most significant benefits of adopting a minimalist lifestyle can be financial—probably more than you imagine.

Let’s look at some areas where embracing minimalism could lead to substantial savings:

1. Reduced Spending on Non-Essentials

By focusing on what you truly need, you can drastically reduce your spending on non-essential items. According to a 2018 study by OnePoll, Americans spend an average of $1,497 a month on non-essential items (and those are pre-pandemic numbers).

That’s almost $18,000 a year!

2. Savings on Housing

Minimalism often goes hand in hand with downsizing your living space. The cost of housing, whether rent or mortgage, typically constitutes a significant portion of one’s budget.

By downsizing from an average 2,500 sq. ft. home to a 1,000 sq. ft. home could reduce housing costs by 40%, potentially saving you thousands of dollars per year.

For the sake of calculations, let’s not make the change that drastic. The average rent difference between one-bedroom and two-bedroom apartments in the US is $336 per month or $4,032 per year, as reported by Rent.com.

3. Lower Utility Bills

Smaller living spaces tend to use less energy, leading to lower utility bills.

According to the U.S. Energy Information Administration, the average monthly residential electricity bill in 2021 was about $122. By minimizing your space, you might reduce this cost by 30%, saving you around $440 a year.

4. Reduced Maintenance and Repair Costs

The more items you own, the more things that can break or need repair. A minimalist lifestyle can help you save on these unexpected expenses by owning fewer things.

A conservative estimate might be a 10% saving on maintenance and repair costs, which averages to about $200 a year.

5. Savings on Clothing

Minimalism often extends to one’s wardrobe. The average American household spent $1,866 on apparel and related services in 2020.

With a minimalist approach, you might cut this in half, saving around $933 per year.

6. Food Waste

Planning meals, shopping with a list, and avoiding impulse buys at the grocery store are all part of a minimalist lifestyle.

The USDA estimates that the average American family of four wastes about $1,600 worth of food each year. By adopting mindful shopping and eating habits, you could significantly cut down this waste and save money.

Becoming more intentional with your meals and grocery shopping, you could likely cut that down by 33% saving $525 per year.

7. Gifts

Reevaluating gift-giving doesn’t mean you have to stop celebrating special occasions.

But by agreeing with friends and family to limit gift-giving to necessary items or experiences, you could save an estimated $500 per year.

Total Potential Savings

Adding these up, the potential annual savings could be around $24,630.

This number might be more or less depending on your personal circumstances, but it gives you an idea of how minimalism can have a positive impact on your financial situation.

It’s important to note that the amount of money you can save by adopting minimalism varies greatly based on your lifestyle, spending habits, and choices.

However, these examples provide just a small glimpse into the potential financial benefits of minimalism.