Digital Minimalism is a Financial Philosophy That Can Save You Hundreds
Clutter isn’t just a problem in our homes and cars. The digital landscape has become increasingly jumbled with subscriptions, apps and promotional emails, leading to spiraling expenses many people fail to notice. This is how the concept of digital minimalism came to be.
Coined by author and computer science professor, Cal Newport, the concept of digital minimalism sheds light on where your money is going. It can show you how subscriptions and forgotten sign-ups are quietly draining your resources every month.
Why let these obsolete subscriptions damage your financial state? We can help you tackle some of the best ways to save money through digital minimalism.
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Practicing digital minimalism can help you from overspending. But if you’re looking for more ways to keep more of your money, here are some of our favorite ways to save.
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How Digital Minimalism Keeps You From Draining Money
The main hurdle on the road to digital minimalism is digital clutter. This refers to services, tools and platforms we subscribe to but don’t need. We’re all guilty of this — whether it’s a streaming service we barely use, excess iCloud storage or rarely touched work-related apps.
In fact, a 2022 study found a whopping 42% of people pay for digital services they don’t use. Truth be told, a lot of this is because companies make it purposely difficult to unsubscribe. It’s been such an issue that the FTC was forced to bring forth the ‘Click to Cancel’ rule in October 2024.
However, it’s easy to forget these costs aren’t only financial. Digital clutter also takes an emotional toll.
Notifications, the need to stay updated and overwhelming dashboards filled with unused apps can lead to stress. An unchecked digital presence fosters decision fatigue and a consistent sense of unrest, which can be mentally taxing.
As a result, digital clutter and its dual financial and emotional toll emerge as a serious threat to our well-being.
Achieve Digital Minimalism By Spotting the Waste
Just like with food waste, the first step toward digital minimalism is looking at your digital consumption to see where you’re wasting money. This involves asking yourself questions like:
- Do I use this app or service regularly?
- Does it add genuine value to my daily life or work?
- Am I holding onto it just in case, or does it fulfill a meaningful purpose right now?
- Was my life significantly worse or less efficient before using this app?
Make a list of every subscription, app and digital service you’re paying for and ask yourself these questions. Include everything: streaming services, cloud storage, software subscriptions, online publications and any recurring charges that might slip through unnoticed. An easy way to get a clear overview is to look at how much you use each app (iOS and Android both track screen time), as well as what each costs you.
Then, you can categorize these into “necessary” and “unnecessary.” But how does one make this categorization, exactly?
Prioritizing Tools and Services that Provide Real Value
Most of the time something provides value if it saves time or money, brings meaningful joy or significantly improves productivity. Any service that fails to tick these boxes is often little more than digital noise.
For instance, news apps can provide all of the above, but having more than one or two is likely redundant.
The same goes for productivity apps, to-do list trackers and similar cookie-cutter productivity tools. Their features typically don’t vary, so there’s no point in cluttering your phone, bank statements and digital well-being.
Another powerful way to streamline digital spending is by consolidating tools. For instance, rather than paying for separate note-taking, task management and collaboration apps, opt for a more comprehensive tool that covers all these functions.
Tools like Notion, ClickUp or Microsoft Teams combine features from various single-use tools, thereby cutting down on overall expenses. This consolidation not only saves money but also simplifies workflow and makes things less overwhelming.
Delete & Automate
Though you might be able to afford those unused subscriptions, you never know when your financial situation could change. In fact, even making the change isn’t enough — you have to make sure the habit doesn’t make a comeback.
An attractive new piece of software or app can easily lead to wasting money once again. Or, one day you may no longer need something that was once useful. A key component of digital minimalism is always keeping a close eye on digital clutter.
Tools like Rocket Money and Monarch Money make it easier to track what you are paying for. Then you can think about what no longer adds value. Such a move can serve as a periodic alert system, helping you stay in control of your subscriptions and even improve how you tackle other financial endeavors.
Most importantly, don’t fall into the trap of lifestyle creep. Just because your business is going well, doesn’t mean you should blow money on new software.
Another way to promote digital minimalism is to go on an unsubscribing spree of promotional emails. Companies send you these emails about sales and deals because they work. They get you to buy something you didn’t need because of the “savings.” Then, they tell you you can save even more by opening up a store card or downloading their app. It all adds to digital clutter that aims to make you spend.
Social Media and Its Financial Impact
While you don’t have to pay to use TikTok, Instagram or Facebook, have you ever thought about the implicit costs of using these apps? In recent years, social commerce (ecommerce on social media) has swept through the platforms. It aims to make impulse purchases almost impossible to resist.
Not to mention, many users are exposed to targeted advertisements and influencer promotions. There goes another unplanned purchase.
To stop this in its tracks, digital minimalism encourages looking at how much time you spend on these platforms. Reducing exposure to ads by limiting time on social media or using ad-blocking tools can help curb unnecessary spending.
A more mindful social media approach not only helps regain financial stability — you get more free time back.
Apply Digital Minimalism to Your Life
Digital minimalism isn’t just about reducing unnecessary spending — it is also about getting a greater sense of control and mental clarity. Streamlining your digital presence leads to noticeable financial benefits by eliminating unused subscriptions, consolidating essential tools and reducing impulse spending.
Beyond the financial advantages, there is a profound sense of relief that comes from having a simpler, less cluttered digital life. This clarity not only boosts productivity but also creates space for more intentional decisions, both online and offline.
New York contributor Kiara Taylor specializes in financial literacy and financial technology subjects. She is a corporate financial analyst.
