Having a minimalist budget can be a great way to simplify your finances. It can also break down the budgeting process and make it simple enough for beginners.

When it comes to the Schaub household, Phil is the finance guy. He takes the lead with budgeting but it's still a team effort.

Since we think it's important for both of us to have some type of financial understanding, Kelsey became an apprentice and dove into our financing world. Keep in mind our current budget is very effective but very complex.

For Phil's logical and analytical mind it's a walk in the park but for Kelsey it quickly became overwhelming. There's nothing wrong with Phil continuing with the finances the way that they are but what happens if Kelsey does have to take them over someday.

Hopefully, this will never happen (for the sake of Kelsey's sanity) but in case it does we needed a plan. Since we are minimalists and embrace simplicity, we came up with some ways we could easily simplify and create a minimalist budget.

After sitting down together and looking through the budget we found some ways Kelsey could easily change up the budget to make it more manageable for a poor mathematician. Use some of our simple tips for a minimalist budget to keep track of your finances with less stress.

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Have Four Budgeting Categories

When it comes down to it, you only need 4 categories in a budget.

1. Spending
2. Savings
3. Investments
4. Debt

You can always add subcategories if that helps you, but sometimes the simpler, the better. These four budget categories make sure you are tracking your money correctly.

Have One Credit Card

We currently have several credit cards that all serve different purposes. For Phil, this is easy to keep track of with an excel spreadsheet but for Kelsey, this is too much. An easy way to simplify immediately is to use only one credit card.

There's no denying that one credit card is more simple. Having one card saves you the time and energy of having to know WHICH card to use and WHICH card to pay off.

If you already have several open, don't close them but instead make sure they are paid off and place them in safekeeping like a lockbox. Over time they will be closed by the provider but this keeps your credit score high while you build up a credit history.

Pay As You Go

There is something to be said about the financial strategy of paying only for things with cash and as you go. The downside to paying with cash is you have to keep a lot of cash on hand and you don't get the perks from credit cards.

Instead of paying in cash, use a credit card that gives you rewards but then pay off the card immediately. So it's still pay as you go but with a twist.

Get Rid of Your Debt

We know we mentioned there are four categories for your budget and that includes debt. And now we are talking about getting rid of a whole category!

When you eliminate your debt you not only eliminate the category from your budget but you give yourself more freedom. Never having to worry about what debt you are carrying with you is a weight off your shoulders.

For your budget, it makes it easier to manage. You know that the money you bring in is either being spent or it's being saved.

Having only two possible places for your money to go means your financial life gets much simpler. You have effectively made your life 33% simpler with just one, easy move.

Build a Manageable Budget

When it comes to a minimalist budget the best thing you can do is keep it simple. Set up your finances in a manageable way that you can easily use.

Phil has our budget out until 2060 using a google sheet with a ton of numbers. He probably updates it at least once a week and doesn't mind all the rows and columns.

Kelsey on the other hand would not do well with that level of information. Instead of a spreadsheet, a simple app works best. (We like using Mint BTW)

We want you to set up your budget in a way that works best for you but keep in mind that keeping it simple keeps it more manageable and with less stress.

It might seem daunting to turn yourself into a lean, mean budgeting machine but trust us, it can be a very simple process. By shifting to a simple, minimalist budget you can tackle your finances without feeling overwhelmed.

We are always looking for ways to simplify our life and our budget is no exception! Figuring out how to budget as a minimalist saved us time and energy making the whole process easier.