Why Having Less Is More When Your Young
To start off, I don’t think everyone has to go about the same way. This belief that having less is more when you’re young is something that I’ve adopted but that doesn’t mean I think people who have a lot aren’t approaching life correctly.
You do you.
That’s the great thing about life. I’ve had many conversations with younger folks who are more successful than I am and who have been able to splurge a bit more on things in their life but for where I’m currently at, this approach works best.
What My Current Situation Is
What my apartment is
Let’s start off with where I’m currently at and what my living situation is before we dive into why I go about life this way and tips to do the same if you so please.
Right now I’m living in a sub-500-square foot studio apartment downtown. Not ideal for most people but it’s been one of the better decisions I’ve made recently.
I’ve lived in many different apartments (nice two bedrooms, college, studio, dorm rooms) so I’ve been able to get a feeling of what I need and more importantly what I don’t.
The benefits of this space I’m at certainly outweigh how small the space is. Obviously, the rent is cheap and especially for being in downtown Milwaukee which can be expensive, to say the least. I’ve been able to save a lot more money month to month than putting up with high rent just for a space that I’m in half the time.
The other main benefit comes in a pair. First, there is less space (obviously) which means there are fewer things that I need to buy to fill up this space. Second, since I was going from a two-bedroom with my sister to a studio, I was able to sell a lot of things to help cover the deposit needed for the new space.
Adding these two together just made sense since I was able to save money monthly and not have to throw as much out of pocket for the deposit that normally isn’t that fun to pay…
Other things I’ve done to save money
Going on the piece that I live downtown. Another main reason for moving here (instead of finding a cheaper place outside of the city) is because my work is downtown.
I’m a good 15-minute walk (or five-minute bike ride) to work on a good day. Now I know this isn’t possible for everyone but if you’re in a fully virtual or hybrid position, the idea of being so close to work that you can just stroll in when needed easily saves on gas, parking, and traffic.
If this isn’t possible and you’re still in a hybrid or virtual role, you can potentially look at a space that is not downtown (even if those places are extremely nice) or you could pick a space that isn’t near the highway.
Normally if you’re in the office daily, those are really your two ideal options which then relationally raises those rent prices. This doesn’t mean that you have to do this but put into thought what your work situation is and how that can benefit you when searching for a new place to live.
The other quick thing I’ve done recently was sold my truck (sad I know…). The amount that I was spending to have my truck turned out to not even be close to worth it.
If you weigh in the insurance, parking, and especially gas I was spending to only drive my truck back and forth to my grandma’s place (and the oddball trips needed), I was spending a pretty penny for that truck to sit on the street.
So that led me to look for other transportation options to get around the city which then led me directly to an e-bike. Now I’m fortunate to split a car with my sister when needed but even if I didn’t have the option I’d still make the same decision.
This is certainly a piece of the formula that a lot of folks won’t/can’t do but just think about the price of things (and if you really need that new car) with how you’re getting around.
Why I Think Having Less Is More
There are a few reasons I’ve chosen to live with a bit less when I’m younger but as I mentioned before this certainly isn’t the only way to go about it but there are a few reasons I think this is a good route to go.
Spend less on things & more on experiences
I’m a huge fan of things, let’s be honest about that. I’m an apple fanboy, love new camera gear, and can easily get obsessed with EDC items.
What I love more than those items though is the experiences I can do with friends and family.
Whether that’s taking odd trips to different places I’ve never been before or just exploring Milwaukee on the odd day, those are memories I want to continue to make. Now both options (things or experiences) can still be costly but for me creating those times are worth the investment early on.
Being young comes with the ability to travel and do things that I won’t be able to when I’m older and one of the main things I don’t want to do is look back and wish I would’ve done certain things that now I can’t.
Able to invest in myself more
This is one that I believe is important no matter how you want to live your life. I use the word investment on purpose because this is an area that can eventually pay you back with the skills and connections you make.
For me, this is mainly online educational courses but it could come with books or monthly subscriptions to different platforms to build a skill set that you want to improve, monetize, or just learn from the start.
A lot of this can then turn into a potential side hustle that starts to cover these investments. Now that definitely isn’t promised but skill addition is still one of the best ways to either grow something outside of work or improve your current position to either a higher income now or down the road.
Save more money for later on
This one is obvious. If I’m spending less on items, that normally means I’m saving more. Now you could offset that with experiences completely but from what I’ve experienced, that costs less (and is less often) than buying the next best computer.
Being young it can seem like you have all the time in the world to put into retirement, save for your safety net, or pay off your loans (which is somewhat true) but as we’ve been told so often, starting early is way more beneficial than waiting.
Don’t let yourself get too anxious about this piece (since I’ve also been in that position) but it is important to think about.
How To Get To Living With Less
Track what you actually use
I did this practice a few years back and it can be pretty eye-opening to see what you actually use. Now I wasn’t super strict but it still allowed me to see what I really didn’t use at all and was just taking up space.
To start, commit to 30 days of tracking. If you only do a few days or a week, you might not understand everything you need, even if it’s just once in a while it could still be important.
Let’s use the example of a vacuum. You likely don’t use this daily, heck you might only use it twice a month. Now if you only keep items that you use more than 1/3 of the month then that vacuum is a goner but we all know that we need some way to clean our living space.
This option isn’t perfect but there will certainly be a few items that stick out that you can sell for at least a few dollars to put towards savings or something more meaningful/useful.
Actually start to budget
Now I know, you’re likely thinking “here we go again, another person telling me I need to budget my money” and you’re spot on with that.
Early on, I never budgeted my finances and it definitely wasn’t something I wanted to do. Looking back though it’s likely one of the bigger things I would change in the way that I lived.
It can be scary to dive into your finances and understand where your money is going if you’re in the hole, or if you just need a few tweaks. The feeling you get when you start to know what is happening with your income is something that’s hard to explain.
You get a sense of security and confidence with how you’re utilizing your money.
So quickly onto the tips that helped me out to try and make this piece a bit less of a hurdle.
First, and most important, find a system that works best for you (NOT what works best for someone else). If the system you use doesn’t work with how you operate or is just too complicated then you won’t use it.
There are a few different systems I’ve used over the years.
The envelope system
How it works: Put cash into an envelope for different budget categories. Once the money is gone, it’s gone. You can’t add to the envelope. You can take from another though.
Positives: Physical cash has a bit more meaning to us than just a card swipe. You have a physical amount that you can spend in a month even if you pull from one category for another.
Negatives: You have to take the cash out at the beginning of the money. You might not always have cash on hand when you want to make a purchase (good and bad at times).
Pen & paper
How it works: Track your spending on a spreadsheet (either online or on paper). This means writing out every dollar you’re spending and then totaling those purchases weekly into each category.
Positives: Your tracking is spot on. You have to open your bank account each week to see what you spent and you get to feel the emotion (good or bad) when you see that account.
Negatives: It’s easy to forget (or skip) a week. It can be very time-taxing and boring.
Utilizing an app
How it works: Connect your accounts to a specific app to have it track your expenses for you.
Positives: Much less of a hands-on approach. Can at times categorize your purchases on its own (after some time). Very accessible.
Negatives: Can be hard to find one that works best for you. Easy to access but just as easy to ignore. Doesn’t automatically add in cash purchases.
Disconnect emotion from purchases
This one is a lot more internal (obviously) but there are a few things you can do to help. Whether we like it or not, marketers are working to evoke our emotions to purchase an item and it’s our responsibility to understand this (and either purchase or not).
It’s easy to see something, feel like you want it now, and click purchase. This could take 60 seconds.
Now the way that I started to try and combat the impact of my emotions on purchases is to put time in between the initial emotion I feel and the time that I decide to make that purchase.
That could be 24 hours or just a few hours but any (somewhat large) amount of time can help you understand if you actually need/want that item or if the marketing was just so good to not go through with buying.
This has saved me from buying a new computer, camera, and other tech items that I really wanted but didn’t actually need.
The other way to help with the emotional piece is to play a bit of a game with purchases.
What I mean by this is if you want a new $1000 computer, tell yourself that you won’t buy it until you pay off $1500 of the debt you have.
Now, this math isn’t the most ideal but what it does is it encourages positive financial decisions before buying that thing you want.
Who knows, the time it takes you to pay off that debt piece might have you realize you don’t really need that item…
But to wrap up, there are a few things I want to hit.
First is that you shouldn’t put a ton of pressure on yourself to make big changes right away. You don’t need a 180 turn this next month but can you start taking small steps like working on creating a budget or putting off a purchase? These small things will certainly add up.
Second, think about what you’re spending money on and whether is it actually bringing you joy or a useful tool. A lot of the purchases I made when I was young were because I thought the item was cool or a massive upgrade (when it normally wasn’t).
Think a bit more about what you’re spending money on. That money was earned not given, spend it on something worthwhile.
Last but not least is that you don’t have to do or listen to any of this.
I have friends and family who think (and act) differently with their finances and it works for them. Everything that I’ve mentioned above has been beneficial to me but I also recognize that not everyone wants to live the same way or handle their finances similarly.
That’s okay! Do what you want and what builds confidence, makes your life easier, and brings enjoyment.
Resources:
The e-bike company I’m going with if you truly want to look… (sorry this might be counterproductive)
