The rise of savings and personal finance information appears to be in constant flux, with a multitude of formulas promising to help us save more at home. The next one, called the 21-day savings challenge or ‘financial fast’, is one of the most aggressive, but also has the greatest impact recently in the United States.
In her book ‘The 21-Day Financial Fast: Your Path to Financial Peace and Freedom’, financial adviser and Washington Post columnist Michelle Singletary describes “financial fasting,” a kind of ‘economic diet’ that promises to end the bad guys. spending habits, create a plan to get out of debt and put yourself on a better financial path for the future.
Eliminate any unnecessary expenses for 21 days
During the financial fast, no unnecessary money can be spent in any way. Unless it involves food, shelter, or any other essential survival expense, spending discipline should prevail during those three weeks.
Although financial fasting is only meant to be followed for a short period of time, its goal is to help break some of the worst spending habits we have in the long run. Although it may seem like an extreme measure, the idea of not spending any ‘extra’ money for a period of time may have some reason.
However, before starting the financial fasting formula, it is important to understand the rules outlined in Singletary’s book.
– Make it last 21 days. Three weeks is a perfectly reasonable time to cut back on wants and expenses, but longer can be very exhausting.
– Make yourself buy only what is necessary. Unless we absolutely need it to survive, there are no other purchases to make. That eliminates purchases, hospitality expenses, or online purchases.
– It is recommended to pay everything in cash. The author says that you are much more aware of the spending process when paying in cash. Those bills can serve as a powerful visual reminder of the decisions we are making.
– Keep a diary of expenses. Throughout the 21-day challenge, keeping a detailed record of what you spend and what you save will give us greater insight into our personal finances. We can also refer to this journal when we are done to help identify the triggers for spending and the habits we should change.
An aggressive savings formula to take easy
This formula, which has spread to blogs and social networks in the United States, certainly has its limitations, and it may not be for everyone. The author advises it for short periods after times of high spending such as vacations or when we need to gather enough money in a short time.
Among the long-term benefits is being more aware of your spending habits. But limiting your spending for 21 days won’t completely change our personal finances. However, it can help save a bit of money, which can be a great motivation to keep going.