I didn’t start living a minimalist lifestyle to save money. What pushed me toward minimalism was overwhelm, the mental clutter that came from too much stuff, too many distractions, and too many decisions. And practically, I was trying to move to a new apartment in late 2010 and I realized I just had too much stuff. 

But as I started decluttering and becoming more intentional about what I allowed into my life, what I bought, kept, and gave my attention to, my spending habits changed without much effort. I wasn’t really trying to cut costs, but I stopped buying on impulse. I stopped shopping out of boredom and I started saving money.

I want to be clear: the ability to choose minimalism is a privilege. For many, buying less isn’t a lifestyle decision, it’s a financial reality. And paradoxically, those with fewer resources often end up with more stuff, not less, because letting go can carry emotional and practical risks when you’re unsure what the future holds.

This post isn’t about offering minimalism as a magic formula for saving money. It’s about sharing how a shift toward less (less stuff, less noise, less pressure) led to unexpected financial clarity. My goal is to help reduce overwhelm and make the culture of overconsumption feel a little less inevitable. I’ll share the financial benefits of minimalism, why it saves you money, and examples of the kinds of stuff I personally save money on.

Minimalism vs. frugality

What started as a desire to reduce overwhelm evolved into a new way of thinking about my relationship with money, space, and stuff. Minimalism and frugality often overlap, they’re not the same thing.

Minimalism is about intention: choosing to own less so you can focus more on what matters. Frugality, on the other hand, is about cost: finding ways to spend less, whether that’s through coupons, sales, or DIY fixes.

You can be frugal without being minimalist (think extreme couponers with overflowing pantries), and you can be minimalist without being frugal (think people who don’t own anything to cook with and eat all of their meals out).

In my case, minimalism taught me to stop asking, “Is this a good deal?” and start asking, “Do I even need this?” It shifted my focus from price tags to value, helping me make better money decisions without obsessing over every dollar.

The financial benefits of minimalism

Minimalism isn’t about counting pennies, but living with less naturally changes how you spend. Without the pressure to constantly buy, upgrade, or keep up, your finances start to settle down. 

Reduced spending 

When you buy fewer things, you spend less, which is pretty obvious. But you also start spending differently. You put a lot more thought and intention into your purchases. This often does mean you spend more money on individual items, but when you buy one thing that lasts, that you truly love, you sort of feel “done.” I am no longer distracted by a cute set of pots and pans, because I personally feel like the pan I have is the best there is. The focus on quality over quantity pays dividends over time.

Less lifestyle inflation 

I don’t feel the urge to “upgrade” things just because I can. This means that my expenses have stayed relatively level throughout my life. No bigger house, no nicer car, no filling up my closet. I buy a new phone when my plan allows me to or if my old one becomes unusable. It is very tempting to treat yourself. When you and the people around you start earning more, it’s very easy to start spending more, that’s how people who make multiple six figures end up living paycheck to paycheck. They upgraded the house, the cars, the bags, and with that come bigger bills, and a bunch of other ”hidden” costs like insurance, maintenance, and security.

Budget clarity 

I often have days on end where I don’t buy anything and my bank statements are quite empty. Sure, the odd bill or coffee out might show up, but since I buy all my groceries in one go, once a week (I meal prep), there’s not much activity in my banking app. This used to be different, before I started living a more minimalist lifestyle I’d have lots of little charges throughout the week. I used to walk around downtown San Francisco, buy something small at Forever 21, pop into H&M and get a top on sale there, and then grab a bottle of vitamin water to drink on the way home. All these small charges don’t just add up financially, they also add up in the amount of work it takes to get a clear picture of what you’ve been spending on. With fewer purchases, it’s easier to track where my money goes and make adjustments.

Why minimalism saves you money

Beyond the obvious savings, minimalism shifts your mindset around consumption. You start seeing the emotional, social, and psychological forces behind your spending (and once you see them, you can’t unsee them).

Less emotional spending 

You start understanding your habits and save money by not leaning on things like retail therapy. You also understand marketing tactics more so you’re less likely to do impulse purchases, and see when advertising and social media make us feel like we’re not good/cool/handsome/interesting enough, and how that drives unnecessary spending.

Less social pressure

In that same vein, social media and society makes us feel like our worth is tied to what we own (and how much what we own might have cost). A lot of people feel social pressure to keep up with trends and somehow show off how well they are doing to the people around them. Living a minimalist lifestyle helps you separate your worth from your possessions, which means you feel less of a need to spend money on external things in order to feel validated.

Happy with less 

I know it’s cheesy, but over time you really do start being happy with less. You start noticing it in things money can’t buy. When you’re not shopping or looking for “the next thing to buy” you start looking for other things to do, with the things you have. Letting go of excess makes room for contentment and creativity. My happiest moments are never centered around things, it’s always been good conversations, laughter, nature, or the way the sun or the moon shines. This feeling has definitely gotten stronger as I have grown older, but it’s always been there.

Redefining necessary  

One of the biggest mental shifts that came with minimalism was rethinking what actually counts as a necessity. Before, I would always convince myself I needed something. But once I committed to being more intentional, I started asking questions like “Will I really use this? Will this add value to my life? Is this just a reaction to boredom or insecurity?” When you live with less, you automatically start questioning anything you bring into your life and you start realizing how little you really need.

The hidden cost of stuff  

Everything you buy comes with a price tag, but that initial cost is just the beginning. Most things continue to cost you money long after you bring them home. They need to be stored (maybe in a bigger apartment or house), maintained, moved, charged, cleaned with special products, repaired when they break, and eventually replaced. Even something as small as a specialty kitchen gadget might require storage containers, replacement parts, or accessories. The more you own, the more you pay, not just once, but over and over. Owning less means fewer of those ongoing, often invisible expenses.

Some practical things I save money on

What you end up having more or less of when you live with less is unique to the individual. That’s why I think prescriptive lists of “the only 5 things you need as a minimalist” are a bit tricky. I don’t have a car, which saves me a lot of money, but that’s only realistic for me because I can walk to work or get a taxi if necessary. So I just want to start this list off by saying: what you can save money on when living a minimalist lifestyle is different for everyone, but this is what it looks like for me:

1. Physical storage: By owning less, I’ve been able to live comfortably in a smaller home. I don’t need extra storage boxes, furniture, or containers, and I’ve never paid for a storage unit.
2. Moving around: Whether it’s avoiding checked luggage when I travel or skipping the need for professional movers when I relocate, having fewer belongings makes moving simpler and more affordable.
3. Digital storage: I keep my digital life minimal too (fewer photos, files, and unnecessary backups). As a result, I get the most out of my cloud and local storage.
4. Home decor: Most of my temporary decor is DIY or made from recycled or found objects, which saves money, gives me a fun craft, and can be recycled or composted when I’m done with it. Most of my permanent decor is also functional. More about decorating with less HERE
5. Souvenirs: All that comes home with me after a trip are photos or a practical item I’ve been meaning to replace at home.
6. Cosmetics: No 12-step skincare routines or perfume for me. My routine is simple: cleanse, moisturize, protect/style. Fragrance breaks me out (a blessing in disguise) so all the fancy looking bottles and jars are off limits, saving me so much money. 
7. Clothes and accessories: I’ve built what I call my forever capsule wardrobe, a small, versatile set of clothes, shoes, and accessories that I love and wear often. I no longer feel the need to chase trends or add new items. More on that HERE
8. Food and kitchen gadgets: While I cook over 90% of my meals at home, I cook simply, with few ingredients and only buy what I actually use. I’ve come to terms with the fact that cooking/baking isn’t my passion, and I’ve stopped pretending it is.
9. Single-use items: I avoid disposable products whenever I can. They take up space, both in the house and in the trash (which means I need to take the trash out more often). I have a single roll of emergency kitchen towels but that usually lasts me almost a year.
10. Home cleaning products: I’ve reduced the number of household cleaners and supplies I use. No fabric softeners, wood polishers, dryer sheets, or window cleaners. A few basics and some vinegar do the job just fine.

Final thoughts

Minimalism wasn’t a financial strategy, but it ended up being one of the most powerful tools for taking control of not just my space, but my finances. By choosing what to let in, physically and mentally, I spend less not because I’m cutting corners, but because I’m no longer chasing things I don’t need.

That said, this lifestyle isn't about deprivation or perfection. My pan is a Le Creuset, my laptop is a MacBook, and at this point, most of my trousers are custom made. Minimalism isn’t about spending the least, it’s about spending well. It’s about being intentional with what I bring into my life, so I can spend my money on things that truly bring me joy, which are usually not things.