Hidden Costs of Minimalism Does Buying Less but Better Really Save You Money

Once again, if you’ve ever looked at a “timeless” $280 sweater sitting in your shopping cart, you may be wondering to yourself if minimalism is actually going to save you money, or simply change how you spend it.

The short answer is- minimalism can save you money, but it will only do so if you are completely honest with yourself about how you spend money and not just about what you think looks good.

What Minimalism Claims Vs. It’s Actually Costs

Living a minimalist lifestyle on paper is fairly simple in terms of just:

• owning a smaller quantity of items,
• investing in fewer items over time
• no longer engaging in impulse purchases due to trends.

The one downside to “better” compared to quantity is that typically something that is considered to be “better” typically comes with an initial higher cost (for example, an “investment” coat may cost five times as much as five fast fashion jackets).

If your income is inconsistent, you have no savings, or you have an unexpected expense, looking at the price tag of the coat is more than just how you are going to style it; it also becomes a cash flow item for budgeting purposes.

In order to have the true financial power and impact of minimalism, you need everything associated with minimalism to be real, and not just a nice thought.

The Hidden Financial Traps of Being Minimal

1. The Cycle of Aesthetic Upgrades

As much as we may want to believe, a lot of minimalism's consumerism is just the same thing with new branding. Neutral colored paint, Scandinavian furniture and the "quiet luxury" look in clothes is just one example of what I just described as rebranding intersectional consumerism.

The danger here is as follows:

• You get rid of functional items that are old.
• You "curate" a new one of the same category that "fit" your new idealised version of you.
• You convince yourself that you are not shopping, and it’s just an upgrade to “your” lifestyle.

Buying your way back to square one at a premium.

2. High Quality + Not Actually Used

The cost per wear of a pair of pants or a blazer only gets "better" if you are actually wearing it. $400 for a blazer worn 80 times would result in a lower cost per wear than a $100 blazer worn 10 times; however, the following things need to happen in order for that to take place:

• Your lifestyle is appropriately matched to the lifestyle you created through your purchase of the pants or blazer.
• You are not changing your body shape or clothing style so quickly that the pants or blazer does not fit or meet your lifestyle needs.

You do not "baby” the item so much that you do not reach for it.

3. Decluttering Loss Awareness

Decluttering often costs you more than just replacing items you’ve thrown away; the real cost may include what is actually lost when you throw items away or donate.

For example, when you declutter:

(1) you can accidentally throw away items with real replacement costs—items that would cost you a lot to replace;

(2) you may have to buy back boring essentials such as tools, storage, kitchen supplies, etc., because your living environment is typically much messier than the way things are portrayed on Pinterest;

(3) you may end up moving from one behaviour cycle (buying, keeping, and forgetting about) to a new behaviour cycle (buying, decluttering, and rebuying).

Deciding "Buy Less but Buy Better" Will Save You Money

If you practice intentional minimalism with discipline, it can be financially beneficial to you.

Intentional minimalism tends to work when:

• You have a real understanding of your lifestyle;
• You limit the total number of items to a specific quantity in each category (e.g., two overcoats, three pairs of jeans, two pairs of tennis shoes);
• You define "better" based on the longevity of the product or frequency of use, rather than merely on its cost or aesthetic appeal.

The best way to experience real financial savings through intentional minimalism is through:

• Investing fewer impulse purchases due to having an exact checklist, rather than just feeling like you have a hole in your closet or house;
• Having lower replacement cycles where you don’t need to buy a new pair of shoes (or resole them), don’t need to replace your pots and pans every ten years, and have not upgraded your electronic device every year; and,
• Reducing the mental tax of browsing, comparing, returning, reorganizing, and feeling guilty about your possessions.

The inquiry regarding the cost is not centered on quality; however, the focus is actually on whether or not the expected cost reduction will produce future spending savings for consumers based upon planned, estimated, and realistic amounts over a period of time.

Practical Filters

Instead of focusing the sale price on whether or not the item is minimalistic in terms of appearance, consider using alternative business filters that you have created for your own use to assess each purchase opportunity. Here are four potential filters to consider:

~Will I use this item at least 10 different times within the next three months?

~Is this solving a problem of an item that is broken, lost or inadequate; or am I simply looking for a new version of something I used to have that I didn't like?

~Will I maintain and repair this item throughout its life and/or I plan on reselling this item? If I am not willing to do the things previously mentioned, maybe I am just borrowing someone else's idea of aesthetics.

~When I purchase this item, am I delaying my ability to make debt payments or owe money for emergencies or essentials. If yes, the statement made about the purchase being an "investment piece" was not accurate because of budgetary concerns.

If the item passes each of these four tests, you are much closer to the goal of value based minimalism versus luxury based minimalism.

The Question Remains: Does Minimalism Save You Money?

It’s possible, but that definitely isn’t a guarantee. Buying less but better can result in savings if:

• “Less” has been quantified and constrained;
• “Better” means correctly fitting your realities and is used frequently; and
• You refrain from attempting to create yet another identity of minimalism that you need to “shop” for.

If you approach your possessions through a business-like perspective, treat yourself like a portfolio manager and assess whether each possession is achieving the goals of providing a utility, providing an emotional benefit, or saving time. If a possession meets none of these criteria, it doesn’t matter how minimalist or expensive it is; it’s a detriment on your net worth.

If you continue to think this way, minimalism moves beyond an aesthetic trend and achieves its goal of being easier on your home, mind and finances.