It's the time of year for New Year's resolutions, and aside from the usual diet and exercise goals, a big one this year is quitting spending. As in cold turkey. The 'Buy Nothing' movement has been around for years, but it's picking up steam now, with Americans facing continued inflation and record high consumer debt. The Buy Nothing plan can take different forms, but generally includes only spending on basic necessities, while acquiring other items through barter or second-handing.
"It's like fasting or going on a very strict diet," says Richard Rosso, financial planner and CPA. "The question is how long will you stick with it?"
Rosso tells KTRH that rather than buy nothing, you should consider starting with a more modest goal, like buy less. "I like the spirit of it," he says. "If this gets you off the fence and accelerates you to look at your daily cash flow, and micro-budget so you know where every dollar is going, you might create some good habits...so I don't think there's anything wrong with it."
"The question is whether it's realistic (to cut all spending)," he continues. "I would recommend moderation and balance, like putting aside a budget and saying this is how much I have to spend, then tracking those dollars."
"But if it's extreme, you're probably not going to do it for long, and you'll probably wind up spending more money in the long term."
Photo: iStockphoto