How Minimalism Helps You to Become a Millionaire

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The Way to be a Millionaire by Being Minimalism

How Much Do We Produce?

Before we talk about how being a minimalism helps you to become a millionaire.  Let’s recognize how much we are producing and wasting.  The average number of items in the typical U.S. household is approximately 300,000 [1]. We hoard so much stuff in our houses. The advanced estimate of U.S. GDP in 3rd Quarter 2018 is $20.66 trillion a year [2] based on the recent data by U.S. Bureau of Economic Analysis. The current U.S. population is estimated to be 329 million as of November 2018 [4]. The GDP per capita based on above numbers is $62,796. But the census counts everyone from new bon baby to 100+ year old. The population between age 18 and 65 is 62.88% [4] of entire U.S. population or 207 million. The GPD per working age (18 to 65) capita is $99,843. That’s pretty significant.


The Nation of Waste

On the other hand, approximately 262 million short tons [5] of municipal solid waste were generated. Of those, 68 million short tons of waste [5] were recycled and 23 million tons of waste [5] were composted. If you divide 262 million ton by 329 million people, that’ll give 0.796 ton or 1592.7 lbs. of municipal solid waste per capita a year. You are generating more than 1500 pounds of trash a year!  Our lives are overwhelmed by the waste.

This suggests that you are buying or you have so much stuff that will end up in the landfill. Take a look around yourself and how many durable items are lasting for more than 10 years?  Being a minimalism not only increase a chance to be a millionaire but also benefits your health and environment.


Everyday Items that Really Utilized

The number of items we actually utilize every day is very marginal. Many of us repeat the routine cycles every day and utilize things that we used recently. The necessary consumables are food, utilities, fuel, hygiene product, household cleaning, insurances, and healthcare related products. The durable or reusable necessities are clothing, vehicles, furniture, electronics devices, stationary, and appliances.  The first step of minimalism millionaire is to recognize what you really need for your life.


Daily Expense of Durable Items

The appliance sounds expensive but once you buy and use them with care, it is going to last for 10 years or longer. The daily expense of $700 washing machine over the 10 year period is only $0.19 plus electricity. Suppose, the annual energy consumption of washer is 175kWh with the utility rate of $0.22 kWh will give $38.5 a year or $0.11 a day. However, many washing machines available today are ENERGY STAR rated. The energy cost can be as low as half or even less.


Tiny House Minimizes the Living Expense

The housing cost is the biggest expense for the most of us. If you build a tiny house, there is no more rent or mortgage after that. The cost of tiny house is very varied and range between around $20,000 to $150,000+. The typical range is between $35,000 and $60,000. If it costs $50,000, the monthly cost is $417 plus maintenance over 15 year period.

You could find the apartment in the community that offers much less rent than national average. The benefit of renting an apartment is that there is no cost for maintenance and property tax. However, the biggest advantage of having a tiny house is it is still a property and you can sell it after a number of years if you maintain well. You can totally recover your initial investment based on the condition of property.  Many people aspire to have large houses.  That is not the case, the minimalism millionaire focuses on saving money to invest.


Wisely Manage Transportation Cost

The cost of vehicle is another large expense but it’s manageable. The Toyota Prius is a great money saver for future millionaires. You buy a Prius $10,000 or less, the daily cost of vehicle is $2.74 or less if the ownership period is 10 years and no value after depreciation. The annual fuel cost based on 12,000 miles a year is $945 assuming Prius keeps the gas mileage of 47 miles a gallon and the fuel costs $3.7 a gallon. That’s $2.59 a day. But if you drive conservatively, you are not going to drive 12,000 miles a year unless you have specific purpose. The most likely range is about 5,000 to 9,000 miles. That’s about $400 to $700 a year or $1.10 to $1.90 a day.

The cost of vehicle is $2.74 + $2.59 + insurance + registration + maintenance. Suppose, the annual auto insurance costs $700, the vehicle registration costs $250 a year, and the maintenance costs $500 a year, the vehicle ownership cost is about $9.30 a day, $279 a month or $3,395 a year. It’s relatively good amount of out of pocket expenses. If you live in the community that allows the convenient access to the public transportation, utilize it. It’s so much cheaper.  The transportation cost is a key to save expenses. A minimalism millionaire won’t wast money on their vehicle which depreciates over the years.


Whole Plants Saves Grocery Bills and Your Life

The average grocery cost for adult male is $226.50 per month [3]. This is based on the low cost plan according to USDA. It is very achievable if your diet is based on the whole plants. The grains are typically $0.99 a pound or less, the legumes, lentils and many fruits and vegetables are less than $1.99 a pound. A 5-pound honeydew or mini watermelon is $2.99 during the season. The yield (edible portion) is about 55%-60%. The actual unit price of these honeydew or mini watermelon is still around $1.00.

The typical adult will need approximately 2000 Calories (2,000 food Calories = 2,000,000 calories) a day. The wheat and rice are the most consumed grains in the world. There are 362 Calories in raw brown rice [7] and 552 grams of rice will be needed to meet 2,000 Calories. That’s 1.22 pounds and it’s going to cost $1.21 a day or $36.23 a month. You might have noticed that why grains are so cost effective? Because the volume of grain increases when they are cooked.

For instance, the volume of cooked brown rice is 3.2 times larger than that of raw state [7][9]. The unit price of cooked rice is about $0.30 a pound. Yet, it is packed with vitamins, minerals, and fibers. The raw rice is a concentrated form of nutrient and energy sources yet still so cheap. This is an example of brown rice but very similar cost scheme applies to many other grains, legumes, and lentils. Numerous scientific evidences indicate that whole plants are the best dietary source over anything else based on health, environment, and ethical standard.  Stay away from typical Western diet.  The healthcare cost could be the biggest threat to become the minimalism millionaire.


Processed food is so expensive

Why you shouldn’t be eating processed food? Because they are so expensive. For instance, Kellogg’s 15 oz. cereal costs $2.69 [10] at Target (as of November 2018). That’s $2.87 per pound. It won’t be cooked and eaten by soaking milk or straight out of box. $0.30 / lb. brown rice vs $2.87 / lb. cereal is drastic. The breakfast cereals are 9.37 times more expensive than whole grain brown rice. This will quickly drains your budget and weighs heavily in long term. Additionally, 34% [11] of this frosted cereal’s weight is a pure sugar and most of them is sucrose. Basically, the sugar intake of cereal is equivalent to what you mix one part of granulated sugar into two parts of water and drink it straight.  The minimalism helps to keep grocery bills lower and increases your savings to to be a millionaire.


Eating Whole Plants Minimizes Healthcare Cost and Reduce Greenhouse Gases

You should be eating grains, legumes, lentils, vegetables, mushrooms, seaweeds and fruits. But not meat, poultry, fish, dairy, and eggs. They are so much more expensive and nothing but a cause of chronic disease which costs much portion of 90% of $3.3 trillion [8] healthcare cost in the U.S. Keep that money in your pocket. Furthermore, the animal agriculture is responsible for 7.1 Giga (billion) tonnes of Co2-equiv. per year representing 14.5% of entire greenhouse gas emission [12]. It is more than Co2-equiv.from all transportation sector combined [14]. Exactly how much 7.1 Giga (billion) tonnes of Co2-equv. is? Well, approximately 112.53 gallons of gasoline is equal to 1 ton of Co2-equiv. It is approximately equivalent to 799 billion gallons gasoline and 7.1 Giga tonnes is generated just in a year.


Your Dietary Behavior Saves the Environment

Astonishingly, 45 million hectares (111.197 million acre) or 62% of the total cleared area in Amazon are dedicated for cattle pasture [15]. That’s roughly 84 million football fields. It is a significant driving factor of deforestation. This takes place only because you consume animal product. If all the consumers stop eating animals right now, we are able to revitalize 45 million hectares of forest and eliminate 7.1 Giga (billion) tonnes of Co2-equiv.a year.

Buying whole plants also reduces the fossil fuel consumption. Why? Because every time something is processed, it takes the electricity to run the plant. The packages and packaging need to be manufactured and sterilized. Also the materials need to be transported to the plant. The U.S. generated 4.03 trillion kWh [6] of electricity from utility-scale facilities and 62.9% [6] of them or 2.536 trillion kWh were generated from fossil fuel source. The electricity or energy generated by the fossil fuel to process food is colossal.

Furthermore, the commercial transportation vehicles are almost solely powered by the fossil fuel. It takes massive energy to produce and transport processed food and all the costs will be passed down to consumers (you).  A minimalism will save a lot of supply chain traffic.


Monthly Income Breakdown

The housing cost, utilities, transportation, and groceries are the largest cyclic expenditures. Additionally, occasional large expenditure such as medical expenses, insurances, or other unplanned expenses. If you live in the tiny house and keep above spending behavior, the approximate monthly expense breakdown is following.


housing $500.00
property insurance $54.17
property tax 1% $5.00
utilities $200.00
grocery $250.00
transportation $279.01
others $300.00


Expense Total $1,588.18
Income $ 3,640.58
Balance $ 2,052.40


Invest Your Savings

The income in the above table is based on the annual income of $65,000 with the take-home pay of $43,687 based on the California tax [16]. You are able to make $ 2,052.40 a month or $24,628.82 of annual saving. This doesn’t sound huge. But invest annual savings in a high quality index fund with 12% compounded annual growth rate every year, your asset will reach $1,028,334 at the end of in 15th year. This is the power of exponential growth. Even if you have some unexpected expenditure, the extra few years are enough to offset your spending.  This calculation is based on no inflation and no wage increase.  The key factor for minimalism millionaire is to be persistent.

Minimalism Salary Growth to Millionaire


Takeaway for Minimalism Millionaire

The behavior of minimalism millionaire contributes to reduce the greenhouse gas production, and maintain a healthier life.  Many millionaires maintain very humble life style. They don’t waste their resources. They keep very productive way of spending money. That’s why their wealth grows.


minimalism millionaire






1. LA Times
For many people, gathering possessions is just the stuff of life

2. Bureau of Economic Analysis
Gross Domestic Product, 3rd quarter 2018 (advance estimate)

Official USDA Food Plans: Cost of Food at Home at Four Levels, U.S. Average, October 2018

4. U.S. Census Bureau
The U.S. population
Accessed 11/30/2018

5. EPA
Advancing Sustainable Materials Management: 2015 Fact Sheet

6. EIA
What is U.S. electricity generation by energy source?

7. United States Department of Agriculture
Agricultural Research Service
National Nutrient Database for Standard Reference Legacy Release
Basic Report: 20040, Rice, brown, medium-grain, raw (Includes foods for USDA’s Food Distribution Program)

8. CDC
Health and Economic Costs of Chronic Diseases

9. United States Department of Agriculture
Agricultural Research Service
National Nutrient Database for Standard Reference Legacy Release
Basic Report: 20041, Rice, brown, medium-grain, cooked (Includes foods for USDA’s Food Distribution Program)

10. Target
Frosted Flakes Breakfast Cereal – 15oz – Kellogg’s
Accessed 11/30/2018

11. United States Department of Agriculture
Agricultural Research Service
USDA Branded Food Products Database
Full Report (All Nutrients): 45127263, Kellogg’s Frosted Flakes Cereal 15oz, UNPREPARED, GTIN: 00038000596551

12. FAO
Key facts and findings
By the numbers: GHG emissions by livestock

13. EPA
Greenhouse Gas Equivalencies Calculator

14. EPA
Global Greenhouse Gas Emissions Data

15. Yale University
School of Forestry & Environmental Studies
Global Forest Atlas
Land Use and Agriculture in the Amazon

16. ADP
Salary Paycheck Calculator


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