a financial fast

Posted on 08. Jan, 2010 by dara in penny pinchin'

The Washington Post recently featured an article discussing a 21-day financial fast. My first thought was, “yeah, this is like everything else I’ve seen,” but upon further examination…this ain’t your average financial advice. Sure it has some advice and tips that we’ve all seen before, but the author Michelle Singletary also adds some rules of her own and backs them up.

Singletary discusses how majority of what we buy is what we want, not need. How our society has become obsessed with having items now and using plastic to get these items if necessary. The major concept of the financial fast is to only buy necessities for 21 days. Necessities are defined as food, medication, essential personal hygiene items, essential school supplies, essential cleaning supplies…you get the point. The bare minimum. Eating out, buying gifts, window shopping, and even online shopping are not allowed. And there’s one last major rule…no plastic. Cash only.

Singletary argues that plastic, even debit cards, can lead us to feel as though we’re spending less than we really are, allow us to mindlessly spend large amounts of money, and fall back onto overdraft protection (which is now offered by most financial institutions). With cash, you’re more likely to be more accountable because your cash is all you’ve got and you’re forced to count out those dollars each time. Leading one to question, “Is this really worth it?”

During the 21 days, think of creative ways to spend your time instead of your money. If you’re supposed to attend a party of some sort, make a personalized gift instead of buying one. Making a budget is also a worthwhile option that you can appreciate throughout the year. We all make financial goals at the beginning of each year, this year try something different to ensure you accomplish those goals.

For the entire article, which I strongly encourage you to read can be found here.

So what do you think of the 21-day financial fast, is it something you’re willing to try in 2010? What financial goals have you set for yourself this year?