A Different Kind of Fast for 2020
If your bank account is the reason for your stress, you already know your not alone on this one this time of year. Take inspiration from a health trend and try an "Intermittent Fast"—for your finances. This is what I'm talking about….
1. Make a list of what you spend your money on after all your bills are paid. Look at your credit card and bank statements and you may be surprised at how much those small purchases add up. According to a CNBC Invest in You survey of over 2,800 American adults, more than a quarter of Americans - 28% said takeout and food delivery is a monthly expense on which they routinely spend more than $200. Others reported spending that much on alcohol -10%, tobacco - 8%, live entertainment and sporting events - 7%, takeout coffee - 5% (that's a lot of coffee), gambling - 4% (that's another post right there) and ride-sharing services - 3%. Once you know what you’re spending a lot of your money on, you can decide what to cut out for your fast.
2. Prioritize your ‘wants’ Now I'm not talking about cutting out every single purchase that brings you joy. That isn’t necessarily a long-term solution. Chris Browning of Popcorn Finance ( I'm googling Popcorn Finance myself right now) put it this way, “If you deprive yourself completely in all areas, you’re destined to fail, But doing so temporarily can help you figure out how much of those expenses are true wants versus habits or impulse buys you could easily scale back". As for me and my house, I'll give up restaurant food before my Amazon Prime membership.
3. Set a resolution After you discover those one or two things that you can live without, now you can set a realistic goal for this year. You may really be surprised how those couple purchases actually affect you and make you think why you actually want to make those purchases. It’s not about how many lattes you did or didn’t buy. … It’s an experiment for you to figure out what your values and habits are.
Please let me know if ya'll do this and how much it helps. Tell your friends and other family members and feel free to share anything we discuss on your social media sites. I will touch on it in my newsletter to remind you so if you haven't subscribed, please do.
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