When I started adopting a more minimalist way of life a few years back, decluttering my budget wasn’t really the first thing on my mind.
It turned out to be more of a side effect. In this case, a very positive one.
So what does living on minimalist or, as I like to call it, functional budget look like? We’ll get to it right away, but let me clarify one thing first.
What is NOT living on a minimalist budget
It does not mean that you stop spending money, stop enjoying life, never go out for dinner or else. It also doesn’t mean you will spend your money on new things only when your current possessions are falling apart.
What living on a minimalist budget is about?
It’s about developing a healthy relationship with your money and financial future.
It is a step away from living paycheck to paycheck. It is a step towards financial stability and gaining control over your finances.
A functional budget will provide you with the opportunity to start doing all the things “you never had the money for”, like creating a financial backup, start investing, have a back up for medical emergencies or even getting extra few bucks to start your business.
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I can barely cover my expenses.
I don’t earn enough. The argument won’t fly by. When I first moved abroad, I lived on a small salary in a costly country, often with money left only for food. I had months when I could save only between 5–20 euros. Sometimes, there were months I wasn’t able to save anything. But whenever I could, I kept putting that little amount aside anyway. And no, I did not starve.
Yes, not all of us earn six-figure salaries, and living costs are going constantly higher. But even six-figure paychecks can slip through your fingers without properly knowing how. So far, I haven’t made it to the six-figure salary group, but having a functional budget on lower-income has helped me feel more relaxed about my finances.
It’s about building long-term and helpful financial…