Comments on: Some Thoughts on “Wallet Fasting”

By: doctor S

doctor S — Tue, 16 Dec 2008 15:58:55 +0000

I do think it is a useful tool, however, I also agree that it is only a temporary solution to a more severe problem. I go through cycles in which I cut out pretty much everything unneccessary from my budget.

The long term solution to this is lean budgeting and developing a mindset that is reasonable when evaluating spending on needs vs wants. It is good to enjoy one self but everything must be reasonable.

By: TStrump

TStrump — Mon, 15 Dec 2008 21:57:21 +0000

Great article.
Deprivation never works as a strategy for the long term.
The best way to change behaviour is to keep track and change it over time.

By: FixThePig

FixThePig — Mon, 15 Dec 2008 04:40:38 +0000

Creating a sense of frugality takes time. It’s like anything in life that takes discipline; people are habitual by nature. Once you get in to the spending habit it’s tough to get out and the same can be said for getting in the saving habit. If you stick with it long enough, you will begin to realize what you need vs. what you want.

By: SS

SS — Sun, 14 Dec 2008 22:53:32 +0000

I think when you are hungry and spent your money
on something too much or frivolous you learn to save if you don’t want to be hungry again because you spent all your money.

By: Peter

Peter — Sun, 14 Dec 2008 22:05:09 +0000

I posted about this similarity between dieting and debt-reduction yesterday:

‘It takes time to lose weight, and takes time to reduce debts, but without a countervailing long-term plan, it is the equivalent of walking at 4mph on a 5mph treadmill. To lose weight – as to become richer – you must break sweat and make it a habit. Diet for life!’

By: Anna

Anna — Sun, 14 Dec 2008 19:50:58 +0000

One trick I use while being economical is to load up on books from the public library — up to the limit, if there is one, whether or not I have time to read them all. It gives me that feeling of being luxuriously rich, but I haven’t spent a cent — unless I keep the books past the due date ;-)

By: Julie

Julie — Sun, 14 Dec 2008 19:46:58 +0000

Congratulations on the book, Trent! Your timing is impeccable…right before the holidays, and during a time when most people are looking to “live cheap.” Very exciting! I can’t wait to find it at my local book store.

By: Early Retirement Extreme

Early Retirement Extreme — Sun, 14 Dec 2008 19:35:23 +0000

I’d argue that it is actually somewhat useful. It sounds like adopting a minimum level of pain (debt) but avoiding running the debt up by doing the occasional fasting. This can be a stable situation. If there is no debt it is simply equivalent to saving up for something before you buy it.

By: Sally Villarreal

Sally Villarreal — Sun, 14 Dec 2008 19:26:10 +0000

Someone else beat me to it, but this is exactly like dieting.

This is a great piece. I used it to explain to my Mom why I still buy some yarn (but not as much as before.)

By: Saver Queen

Saver Queen — Sun, 14 Dec 2008 18:57:01 +0000

Excellent article – you’re right, it requires a shift in consciousness. But I think that the change can happen gradually – and like dieting, after you get used to spending less you start to realize that you actually need less to be happy. One of my strategies that I recommend is giving yourself little treats along the way – small pleasures here or there, either that cost money or are free – to keep yourself from spend bingeing. One woman I know actually builds this right into her budget. I know myself well enough to know when I need to give myself a little something before I start feeling too deprived.

By: Jackie

Jackie — Sun, 14 Dec 2008 17:54:14 +0000

When I was a grad student and living on a very fixed income, I kept a spending journal for the first or month or two, to keep track of where my money was going and cut down on waste. I’m actually thinking of starting it up again after the holidays, but the trick will be convincing my partner to do the same….

By: The Penny Pincher

The Penny Pincher — Sun, 14 Dec 2008 17:47:52 +0000

The same logic applies to dieting as well: diets where people fast to lose weight, invariably lead to people gaining even more weight when they stop or as giving up “treats” makes the cravings more urgent.

By: steve

steve — Sun, 14 Dec 2008 16:35:02 +0000

@ bill m: “if we all slow down a little bit and pace our selves we won’t get into the problem in the first place.”

Yeah, great point. slowing down is a major key to solving this problem. slowing down to think about what’s important, slowing down to decide whether it really makes sense to buy that thing, slowing down to decide whether it really makes sense to work but not save any money….

great point.

By: Bill M

Bill M — Sun, 14 Dec 2008 16:32:01 +0000

People need think of their financial lives like a marathon, instead of sprints. You mess up and you run to fix it, instead if we all slow down a little bit and pace our selves we won’t get into the problem in the first place.

By: KC

KC — Sun, 14 Dec 2008 16:18:58 +0000

Something that worked for me was keeping a spending journal. And whenever I felt the urge to splurge (or fast) or whenever I didn’t have any money I’d look back at that journal to figure out why. Then I’d see some foolish “urge” purchases I made and I’d suddenly lose the “urge” to spend more. Or if I was thinking of fasting I’d see where I didn’t spend any money for a few weeks then I went out and blew a bunch of money. That spending journal always seemed to have a calming effect on me no matter what emotions I was having.

By: Chris

Chris — Sun, 14 Dec 2008 16:09:51 +0000

Some great thoughts Trent. I’m pretty sure every person who attempts to make a change like this falls back into this trap at some point or another. One way to avoid spending that extra money in the checking account that works for me is to immediately divide my paychecks into separate accounts. Personally, I divide it up by putting 30% into savings which eventually gets invested, 10% into a “big purchases” account which is for things like a new computer, camera, etc., 15% goes into paying off principal on my debt, and the rest goes into my regular checking account to pay for regular expenses.

I know you’re a big ING fan Trent, and I love them too because of how easy it is to set up these accounts and divide money up between them.

By: Kate@LivingTheFrugalLife

Kate@LivingTheFrugalLife — Sun, 14 Dec 2008 15:18:49 +0000

Good post, and it’s very true about the similarities with dieting.

I do think that a “wallet fast” is still a useful tool once in a while after our financial house is pretty much in order. At that point it becomes a game and useful occasional discipline. I hadn’t used the term before, but I have done this from time to time, just because. Then I have to ask myself whether I’m spending money (on gasoline) if I drive to the library to borrow some DVDs for free.

It’s certainly possible to take the wallet fast thing to an extreme.