Every once in a while, it’s good to step back and ponder how on earth you blow through as much cash as you do. And, just in time to help you, No Buy July is upon us.
While Frugal February encourages us to make smart decisions with our dollars, including paying off those holiday bills, No Buy July takes the philosophy that we can’t really be trusted so don’t spend any more than is absolutely necessary.
Smack dab in the middle of the year, July is a great time to touch base with our financial goals and double check on how we are doing sticking to the cash flow plans we made in January. If we pare back to the basics, how does that compare with what we thought were the basics when we built those dreamy cash flow plans way back in the dark, cold, winter.
If this is your first No Buy July, take heart that No Buy really means No Discretionary Spending or buying only the essentials. That being said, what you consider an essential and what your financial consultant considers an essential might look somewhat different. This financial consultant considers essentials to be a safe roof over your head, nutritious food on your table and working electricity – the rest is discretionary. Harsh, I know….
On the other hand, in this environment of economic uncertainty, layoffs in the [hundred]thousands, student loan and medical debt being added back to credit scores, and the loosening of bank fee regulations, revisiting how you spend your income isn’t such a terrible thing.
As you go about your month, spending as little as possible, perhaps you’ll feel the impulse to purchase something that isn’t essential. Some participants will write down (this is pen and paper time) what they want to purchase and put that folded piece of paper away for a week (or the month) which allows for time to evaluate how necessary that purchase really is. Come August 1st, you are free to make that purchase if you still think it is important enough to do so.
If something breaks, take some time to think about how badly you really need to replace it during the month (or ever). Consider the time a gift – you can research what you really want as a replacement. This can be a great wake-up call to remind us that not everything is a necessity and July is only 31 days.
So, freeze those credit cards in a bag of ice, use up anything in the back of those cupboards or the bottom of the freezer, explore the free things there are to do locally, and get back in touch with your money – it misses you.