Minimalist lifestyles are increasingly popular, and it’s not hard to see why. From capsule wardrobes to simplified living spaces, minimalism promotes a sense of calm and control. But have you considered applying minimalism to your finances? Minimalist money management is about streamlining your financial life to reduce clutter and complexity while maximizing savings. Here’s how you can embrace this concept and reap the benefits.

First, take inventory of your financial accounts. Do you have multiple savings or checking accounts with different banks? Streamline by consolidating accounts with the same institution. You’ll reduce the mental clutter of managing various logins and passwords, and you may even benefit from improved interest rates or account perks. Similarly, assess your investment accounts. If you have old 401(k) plans scattered across previous employers, consider rolling them over into a single IRA account. This simplifies your investment strategy and provides a clearer picture of your retirement savings.

Next, tackle your budget. A minimalist budget focuses on conscious spending and prioritizes needs over wants. Evaluate your expenses and identify areas where you can cut back. Perhaps you can negotiate lower insurance premiums, reduce subscription services, or opt for cheaper generic brands at the supermarket. By minimizing unnecessary expenditures, you free up more money for savings or investments. A great way to do this is by implementing the 50/30/20 rule, where 50% of your income covers needs, 30% is for wants, and 20% goes directly to savings.

A minimalist approach to debt management involves creating a clear plan to become debt-free. List all your debts, including credit cards, student loans, and mortgages, noting the interest rates and outstanding balances. Focus on paying off the highest-interest debt first, while still making minimum payments on others, and consider debt consolidation if it lowers your overall interest burden.

Simplifying your bills can also bring peace of mind. Automate recurring payments for utilities, insurance, and subscriptions to ensure they’re paid on time, every time. Many service providers offer discounts for enrolling in autopay, so you may even save some money. Review your automated payments periodically to ensure they align with your current needs and budget.