Sunday, January 3, 2010

The Financial Fast

Michelle Singletary, a columnist for The Washington Post, has a wonderful article in today's edition. In it she suggests a 21-day financial fast. My favorite part is this paragraph right here:

The second part is eliminating the use of plastic, both credit and debit. There's a real danger in relying on credit even if you pay off your bill every month. Paying with plastic just makes buying too easy. Swipe, and within seconds you can be mired in debt. Let's consider the example of purchasing a flat-screen television. If you had to stand at a cash register and count out bill after bill after bill after bill to pay the hundreds, if not thousands, of dollars for a television, you certainly would contemplate whether the purchase made financial sense. You might even do some mental accounting to calculate what debts you could pay down or pay off instead. Plastic doesn't allow for that deliberation. (Emphasis added.)

I like the idea. And I'm considering it, although the idea of not using my debit card scares me. I know many use the envelope system, but I'm just never comfortable carrying around that much cash. And since I still use a transaction register for all my purchases, I am always mindful of what I'm spending. I do not rely on overdraft protection to bail me out. So, we'll see about that part. The part I would like to focus on, however, is the part on spending only for necessities. Anyway, we'll see.

Enjoy the article!

2 comments:

Anonymous said...

I found that when I don't use my debit card, I actully make less purchases. I do not carry all available cash (envelope) with me at all times. I only carry my blow money.

You should give it a whirl, it is only few days.

veronica said...

I love the idea of "blow money." LOL When I give it a shot, I'll definitely report back. :-)