The first Spartan Challenge
Go paperless. Well, go paperless and card-reduced to be more specific. In our quest for maximizing personal finances using mobile and a minimalistic approach, moving towards a paperless and card-reduced system is the first step. Not sure about the reasons to start the journey? Read on.
The cost of paper and cards is surprisingly high
Money - research demonstrates significant costs associated with paper. Not only are there filing and storage costs, there's also the cost of eating a return when a critical receipt goes missing. Furthermore, unused gift cards that sit around the house represent opportunity cost.
Time - searching for a lost receipt or a specific business card is a waste of time. To say nothing of trying to whip out a store loyalty card while at the checkout stand with six impatient patrons glaring at you.
Health - chemicals found on receipts and other paper can be harmful to your health. In some cases, wallets have been associated with back pain.
Environment - plastic cards and paper consume resources and in the case of plastic, far outlasts its useful life.
Risk - cards and paper are less secure than digital options. Smartphones can be locked, encrypted, or even wiped. A stolen plastic gift card is as good as cash and savvy thieves can use your spare check to clean out your bank account.
To borrow a quote from Capital One, "What's in your wallet?"
A quick look at all the items that can clutter our wallets:
- ID/driver's license
- Insurance (medical/dental/vision) cards
- Proof of auto insurance
- Credit card(s)
- Debit card(s)
- Cash
- Coupons
- Loyalty cards
- Punch cards
- Store cards
- Photos
- Gym card
- Library card
- Receipts
- Gift cards
- Public transportation card
- Business cards
- Tickets (show, movies, theater, etc.)
- Spare checks
- Others?
Some cards, such as government-issued ID cards, will be with us for the foreseeable future. However, we now have the option to digitize a number of the items above, reducing cost, frustration, and risk.
Gift cards -> Gyft
My 15 year old cousin, who receives a large number of gift cards, was able to find, install, and utilize Gyft. He is now able to use his gift cards from his Apple iPhone 5. Not only does he reduce the risk of underutilized gift cards, he is also able to carry less cash.
Gym/library/receipts/loyalty cards -> Lemon Wallet
Lemon Wallet enables you to digitize your wallet by taking photos of your card and then entering basic information about it. Lemon Wallet will then create a digital version of each barcode for scanning. Be sure to carry the original card until you've verified the functionality of the digital version.
Receipts/business cards -> Evernote
Evernote is an incredibly versatile application. Simply snapping photos of receipts and business cards will enable you to search for all of the text in each document. What's easier, rifling through a stack of business cards or searching for a name? For more information, see an earlier post.
Proof of automobile insurance -> Depends on state of residence
A number of states are starting to enact legislation that allows digital versions of proof of insurance. If your state allows digital proof of insurance, try using your provider's mobile app or snap a photo of your auto insurance card.
Insurance card(s) -> TBD
You'll have to make your own call about insurance cards. Each medical/dental/vision provider has different rules-- it's best to find out the official policy.
Conclusion
The current toolset leaves a lot to be desired, but the pace of innovation and improvement is both rapid and inspiring. Starting early will put you on an accelerated path to saving time and money, while reducing risk and simplifying your personal finances.
Future posts will include tips and techniques to conquer the first Spartan Challenge: going paperless.
Other resources
photo credit: SlipStreamJC via photopin cc
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