How To Fight Financial Overwhelm

What would happen if you pared your life down to the essentials?

It’s been a while since my last blog post. Truth be told, I’ve been frozen like a deer in headlights. It felt like everything there was to say about personal finance had already been covered in the national media thanks to CNN, CNBC, The New York Times, etc. I wasn’t sure I had anything left in me that could help you.
And then I royally screwed up.
I was supposed to do a half hour LIVE radio interview one Friday night at 9pm EST. The morning of the interview I emailed the show host to confirm the dial-in. Some time in the afternoon we exchanged emails to further clarify the topics we’d be discussing on the show. That night I came home and…. completely forgot to dial in to the LIVE radio show. We’d been planning the interview for over a month. It was for a show whose audience I felt passionate about helping. I adored the show host. And I just completely forgot. It was as if a circuit breaker just flipped in my head.
While mortified by my behavior, in retrospect it was a huge wake up call. I had been packing my days so tightly with work, my brain was literally overloaded and had shut down. I was burned out.
That got me thinking about whether the overwhelm so many people feel about their personal finances could be caused by packing their lives too tightly. So I turned to my friend, Francine Jay, author of the critically-acclaimed book, THE JOY OF LESS. In this must read book, Francine details how she – and you – can “live lightly” on this earth.  Today Francine shares with us her thoughts on how minimal living can help combat financial overwhelm. Here’s hoping this Q&A with Francine will help keep you from missing any important events in your life. [For more Francine, sign up for her Miss Minimalist blog, follow Francine on Twitter, or read her other insightful book, FRUGILLIIONAIRE].
(1) Francine, what is minimal living & what triggered your journey into it?

Minimalist living is stripping away all the excess, to make room for what’s truly important to us. It’s about eliminating the clutter and distractions that keep us from fully appreciating life.
My minimalist journey began when I started traveling lightly. I realized how wonderful it was to travel with a small carry-on bag, with only the essentials, instead of lugging around a heavy suitcase. When I was on vacation, I found it absolutely exhilarating that I could get by with so little – I felt like I could go anywhere, and do anything, because I wasn’t loaded down with stuff. And I thought, wow, how amazing would it be to live this way, and have the freedom and flexibility to pursue whatever opportunities arise!

(2) How has living a minimalist lifestyle affected your finances?

Becoming a minimalist was the best thing I ever did for my bottom line. When I decided I didn’t want to own a lot of stuff, my spending plummeted; it’s amazing how much money you save, simply by staying out of the stores. Furthermore, selling my castoffs on eBay and Craigslist was an eye-opening lesson—I learned just how quickly material goods depreciate. Henceforth, I resolved to “waste” as little money as possible on frivolous consumer items.

(3) What is your top tip for streamlining the day-to-day financial tasks associated with running a household?

Pay with cash or a debit card whenever possible—it eliminates a world of worry (like interest rates, minimum payments, and late fees) from your financial life. Accordingly, reduce your credit cards to the absolute minimum. Learn to say no to all those credit offers and store-branded cards; the fewer bills you have to deal with, and the less temptation to swipe the plastic, the better.
Also, put some transactions on auto-pilot. Set up automatic payments for recurring bills like your car loan, mortgage, or insurance premiums—it not only frees up your time, it guarantees you won’t miss a payment and incur late fees or higher rates. I’m a big proponent of automating investments as well… it’s a wonderful, no-fuss way to grow your nest egg.

(4) Francine, as someone who has written a personal finance book and a book about minimal living – what is the most common mistake you see people making with their money?

… valuing consumer goods over financial freedom. Chasing trends, status symbols, and the “latest and greatest” technology is a losing proposition; the satisfaction we derive from most such items is short-lived at best. When a newer model comes out, or a “must-have” goes out of style, we’re right back where we started—and with less money (or more debt) to boot…. Financial security creates more long-term happiness and well-being than any consumer item.

(5) What are the greatest benefits of living a minimalist lifestyle?

Less stress. The fewer possessions you have, the fewer chores and worries you have (in other words, you have less to clean, maintain, repair, insure, protect, and pay for).
More freedom. Possessions can be like anchors, tying us down and keeping us in place. When you’re not weighed down with stuff (or the debt used to pay for it), you’re more flexible, mobile, and able to take advantage of opportunities as they arise.
More joy. I believe that true happiness comes from what we do, not what we have. And the less stuff we have to fuss over, the more time we have for friends, family, community, and the wonderful experiences in life.

Thank you, Francine! Here’s to all readers avoiding financial, and all other, overwhelm thanks to Francine’s excellent tips.
Do you have any additional tactics you’d like to share about avoiding financial overwhelm?  I’d sure love to hear them!

15 Replies to “How To Fight Financial Overwhelm”

  1. Love these wise words of advice. As a Suitcase Entrepreneur the fact that I can fit my whole life in one suitcase, and my business in one laptop bag makes me feel incredibly free. I’m also really frugal. I just don’t feel the need to spend money on things, on stuff, I spend it on experiences.
    So this really resonates with me and the whole eliminating distractions and non essentials. Powerful yet so hard to do if you don’t become disciplined with it.

    1. And YOUR location independent lifestyle is such an inspiration to me, Natalie. I once heard someone say they wanted to be the exact same person even if their home burned down and they lost all their worldly possessions. Not that I want anyone’s home to be destroyed – but it struck me how liberating that underlying mindset is. And you’ve shown us all how one can even do that with a career!

  2. I read it twice. I printed it out. I reposted on my facebook and my twitter. This is so on the ‘money’ (forgive the pun)…
    Did the radio host forgive you? Describe the feeling in your stomach when you realized you forgot to call in. I know it too well. Less often now.
    Thanks friend for a great blog.
    Christine Merser
    Blue Shoe Strategy

    1. THE FEELING: like I’d lost my purse while blind-folded on a roller-coaster with the person next to me punching me in the stomach repeatedly.
      THE SHOW HOST: was an angel – no doubt because she, like all too many of us, has been in that cold, dark, ugly pit of overwhelm before too
      YOU: xoxo for sharing & here’s to the day when you (and all women!) forget what that feeling is like because our lives just roll smoothly

  3. Excellent Post! Thanks Manisha! Great Tips from Francine… How true that we often don’t enjoy small , beautiful moments in life getting in caught in our possessions, desires and status symbols..

  4. I enjoyed and appreciate the information on minimalist living, but I wanted to speak to the beginning of your post: Thank you so much for your vulnerability in admitting you felt you had hit a wall and might not have more to offer. I find it very easy to imagine that others are without the fears and weaknesses I have, and really appreciate someone sharing their professional struggles. It reminds me, again, to see my own self doubt as just part of the process, not a sign to give up. Good job!

    1. Oh the wall – I know it better than I’d like 🙂 Figure the more we all talk about it the easier it will be for us all to leap over it when the time is right. So thank you, Kelly, for encouragement to put it out there. Here’s to you powering over the wall as well!

  5. Hi Manisha, I’m a new reader here. I was really happy to read this….I am so appreciative of the vulnerability as well. We are all trying to be so perfect all the time that it’s refreshing to read something like this to remind us that it’s ok to mess up, that’s life! I read the comments below and it sounds like the show host was amazing, that’s the icing on the cake. Thank you for sharing!

    1. Kathryn – Welcome! And thank you so much for your kind note. Figure while it’s always good to be transparent it’s EXTRA important to do so around the topics of money / work / life obligations where so many people are feeling stretched to the bone. From the public and private reactions to this post, it’s very clear to me that soooo many of us women are struggling with perfectionism. So here’s to all of us giving ourselves a bit of breathing room to create lives that really do make our hearts sing!

  6. Thanks for the words of wisdom! Living a minimalist lifestyle not only enriches our souls but also secures our financial future.

  7. Pingback: CPA
  8. Pingback: lau nam

Leave a Reply

Your email address will not be published. Required fields are marked *