Comments on: Binge Spending and Financial Fasting

By: Diana

Diana — Mon, 29 Sep 2008 20:08:11 +0000

I am a text book case of financial binging and fasting. I do so well at throwing money at my credit card debt, sometimes $700 a pop! Then, I easily go out and drop $150 on jacket (grant it I do need a jacket as my old one is so beaten it no longer does the job but I don’t need a $150 jacket) which I eventually returned.

What works for me is to:
1. Share my goals of getting out of debt and saving with other people
2. Call the people I have shared my goals with when I am about to binge.

Sometimes this helps…because realy freinds want to see you reach your goals and will help talk you out of splurges. But I guess it would help even more if I call them before I go to the store in the first place.

By: Finance Fiesta #15~The Patriot Day Edition | On a Quest To Be Debt Free...

Finance Fiesta #15~The Patriot Day Edition | On a Quest To Be Debt Free... — Thu, 11 Sep 2008 14:05:50 +0000

[...] Credit Card presents Binge Spending and Financial Fasting posted at Ask Mr Credit [...]

By: Money Hacks Carnival #29 at Living Almost Large | Money Hackers Network

Money Hacks Carnival #29 at Living Almost Large | Money Hackers Network — Thu, 11 Sep 2008 01:27:27 +0000

[...] Credit Card talks abouts how our emotions affect our spending in Binge Spending and Financial Fasting posted at Ask Mr Credit Card. I see spending much like being on a diet, it’s a lifestyle, not a [...]

By: Money Hacks Carnival #29: Food Heaven | LivingAlmostLarge

Money Hacks Carnival #29: Food Heaven | LivingAlmostLarge — Wed, 10 Sep 2008 12:02:11 +0000

By: Mydailydollars

Mydailydollars — Mon, 08 Sep 2008 15:50:46 +0000

I have so been guilty of binge spending. I think that I’ve had all those thoughts about my splurges. I do try to give myself a small “binge” fund. If I want something that costs more, I have to save up for it. The other thing that I’m really trying to do is not pre-spend any bonuses or extra money. I have to wait until it hits my bank account to even think about what to do with it!

By: Carnival of Debt Reduction » Blog Archive » Welcome to a windy and rainy Carnival of Debt Reduction

Mon, 08 Sep 2008 12:09:55 +0000

[...] Ask Mr. Credit Card warns of the dangers of binge spending and financial fasting. [...]

By: Connie Brooks

Connie Brooks — Sat, 06 Sep 2008 05:48:45 +0000

Matt,

What an excellent idea. I think that will really make a difference for me if I think about it this way. Thanks for taking the time to spell it out for me – it mattered!

By: Matt @ Steadfast Finances

Matt @ Steadfast Finances — Wed, 03 Sep 2008 15:48:57 +0000

Interesting post and the financial “moment of pause” I give to the people I advise is this…

Think about what a major purchase will cost you in the future. Quick math is a great thing, so calculate what your purchase would cost you if you tossed that money in a tax sheltered investment (like a Roth IRA) using the compounding interest equation.

P = C (1 + r)^t
P = $800 (1 + 0.08)^20
P = $3728.77

So in your case, $800 over a 20 year period at 8% interest equates to $3728.77. Often, it’s just enough to inject that “moment of pause” I mentioned and gets people to say… Do I really need it this badly?