What comes to mind when you hear the word minimalist?
Many people probably think that living with only the bare essentials makes it easier to cut unnecessary spending.
Minimalism offers many advantages like this.
In this article, we explain the money-saving practices used by minimalists who live with fewer unnecessary expenses.
If you want to save money, this is worth reading.
Why do minimalists get rid of their TVs?
Many minimalists choose to live without a TV.
That is because giving up a TV can reduce receiving fees, electricity costs, and other related expenses.
Since the annual savings can reach roughly 15,000 yen, people who rarely watch TV in their daily lives may find that letting it go is not a problem.
If you already get all the information you need through your smartphone, you will hardly be inconvenienced without a TV.
Watching less TV can also reduce the urge to buy things, which leads to even greater savings.
How much can you save by keeping household appliances to a minimum?
Keeping household appliances to a minimum is another money-saving practice used by minimalists.
Because appliances require a significant upfront cost, some people deliberately choose not to buy them when they start living alone.
For example, it can make sense to prepare a floor wiper instead of a vacuum cleaner, or to buy a microwave with an oven function instead of purchasing a toaster.
Some people even live without a refrigerator or washing machine.
If you avoid buying appliances you do not truly need and stay focused on the minimum, that can lead directly to savings.
How much can you save by switching to a low-cost SIM?
This is not limited to minimalists, but more people are switching to low-cost SIM plans to save money.
When you compare smartphones from major carriers with low-cost SIM plans, the monthly payment often differs by more than 5,000 yen.
Low-cost SIM plans usually do not come with cancellation rules such as a two-year lock-in period, and even if you cancel, high penalty fees generally do not apply.
If you feel your smartphone bill is too high, it makes sense to consider switching to a low-cost SIM as soon as possible.
There are several types of low-cost SIM plans, and the right choice naturally depends on how you use your smartphone.
If you want to use phone numbers such as 090, 080, or 070, a voice-call SIM is convenient.
If, on the other hand, you want inexpensive internet access without voice calling, a data-only SIM is a good option.
Some plans also come bundled with a smartphone, so take time to compare the options carefully and choose the one that best fits your needs.
How should you use Tsumitate NISA and iDeCo?
It is also worth making use of Tsumitate NISA and iDeCo.
More people are starting Tsumitate NISA and iDeCo because investment gains are tax-exempt under both programs.
Tsumitate NISA allows installment-based investing up to 400,000 yen, while iDeCo differs in that annual contributions vary significantly depending on your occupation and your employer's pension system, ranging from 144,000 yen to 816,000 yen.
Even so, both programs offer a major advantage because investment gains are tax-exempt.
In the case of iDeCo, another advantage is that all contributions are eligible for income deductions, which can reduce both income tax and resident tax.
For example, if a person pays 10% income tax and 10% resident tax and contributes 120,000 yen in one year, the tax savings come to 24,000 yen.
However, because iDeCo is designed to build retirement assets, you need to keep in mind that withdrawals are not allowed until age 60.
By contrast, Tsumitate NISA is not eligible for income deductions.
When it comes to withdrawals, Tsumitate NISA allows you to withdraw at the timing you choose.
If you want more flexibility in how you manage your investments, Tsumitate NISA is generally the better choice.
Tsumitate NISA and iDeCo are both attractive programs.
If you are considering asset building, one common approach is to start with Tsumitate NISA first and move to iDeCo later as you get older.
If you start after determining which option best fits your lifestyle, you are less likely to have regrets later.
What is an effective way to save on utility and electricity costs?
Minimalists also put thought into ways to reduce utility and electricity costs.
If someone moves from a 3DK property to a 2DK property, the smaller number of rooms may make it possible to reduce the number of air conditioners to one.
Air conditioners are among the household appliances that consume the most electricity.
For people who want to save money, being able to reduce the number of air conditioners is a major advantage.
For other appliances as well, unplugging items you are not using can reduce standby power consumption.
Even small adjustments in daily life can be enough to lower utility and electricity bills.
It is worth looking at how minimalists live, including areas you may not have paid attention to before, and putting those ideas into practice where they fit your life.
Set clear criteria for what to throw away
Do you have clear standards for deciding what to throw away?
Many people probably get rid of things somewhat casually.
However, if you want to become a minimalist, it is a good idea to decide on clear criteria for letting things go.
When setting those criteria, it is important to consider whether the item is truly necessary for you or your family right now, whether it is something you or your family genuinely like and want to value, and whether it still functions properly.
Many people who struggle to throw things away keep large amounts of belongings in storage for reasons such as "I can still use this" or "I might wear this again someday."
Others leave things as they are because disposing of them feels like too much trouble.
If you want to live a money-saving lifestyle like a minimalist, it is worth decisively letting go of anything other than items you truly like, items with memories attached, or things that make you feel fulfilled.
It is also important not only to throw things away, but to decide in advance how much you will keep and to be careful not to let that amount grow too much.
Summary
Many minimalists live with only the minimum necessary furniture and appliances.
By doing so, they can reduce costs such as electricity bills, which makes the benefits significant.
If it feels difficult to adopt exactly the same lifestyle, try bringing even one minimalist habit into your daily life.
Giving up your TV or reducing appliances to the bare minimum may be difficult, but switching to a low-cost SIM or making use of Tsumitate NISA and iDeCo are easier steps to start right away.
As you gradually change your lifestyle, it becomes easier to put many of the saving practices used by minimalists into action.
Frequently Asked Questions (FAQ)
How much can a minimalist lifestyle help you save?
You may be able to save 20,000 to 30,000 yen per month by giving up your TV, switching to a low-cost SIM, and canceling unnecessary subscriptions.
What is the difference between Tsumitate NISA and iDeCo?
Tsumitate NISA is an investment program that allows flexible withdrawals, while iDeCo is a retirement-oriented investment program that does not allow withdrawals until age 60.
What should you do first when starting a minimalist lifestyle?
It is most effective to begin by reviewing unnecessary subscriptions and household appliances you are not using.
