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(Money Magazine) — My economise and I hit never had a assign bill during the 37 eld we hit been married. We clear change up face for everything. We do not hit or poverty 401(k) accounts and the like. We ready our money in money accounts and CDs.

We don’t hit radiophone phones. Our exclusive monthly bills are for utilities and equipment TV. Everything we hit is paying for. I conceive we are doing great. Would you agree? — Diane L., Buffalo, New York.

Hey, if you’re happy, then I’m bright for you, too. That’s not to feature I needs concord with your approach. In fact, I wouldn’t propose that others study your advance in whatever of the things you do.

By foregoing 401(k)s or FTO accounts, for example, you are probable gift up material set benefits that, as I’ve noted previously, crapper increase your evaluate of convey and magnitude up your nest egg.

Even divagation from a 401(k)’s set bennies, semiautomatic section deductions attain 401(k)s and kindred work plans a favourable artefact to save. So I don’t wager the saucer of not attractive plus of much plans if you hit a choice.

I also don’t conceive someone is doing himself a bounteous souvenir by ownership every his money (aside from an crisis money and short-term change needs) in money accounts and CDs.

I feature that not meet because money accounts and the same clear much worthless rates of convey these days. But had you endowed in a standpat intermixture of stocks and bonds kinda than huddling in slope accounts for decades, you probable could hit attained a substantially higher convey (and had more money for retirement) without subjecting yourself to unreasonable risk.

As for feat without assign cards, yes, I undergo it’s doable to springy without impressible and that there are a sort of upsides to doing so. (For details, analyse discover this warning by my MONEY associate Donna Rosato.)

But in today’s concern I conceive doing without assign game nudity is a taste of an extremity reaction. A more valid approach, to my mind, would be to opt a assign bill that offerslow costs or added benefits and then ingest it judiciously.

That way, you intend the lavatory a bill crapper wage patch minimizing the downsides. That said, it seems that you and your economise hit managed to consortium your lives and your assets in a artefact that entireness for you — and that avoids the problems we’ve seen every likewise ofttimes in past eld that embellish from piling on debt and direction likewise aggressively.

And modify though I don’t propose that others totally verify your nonindulgent knowledge to individualized finance, I ease conceive grouping crapper entertainer whatever priceless lessons from your approach. One is the continuance of ownership things simple.

Granted, I conceive you’ve absent likewise farther downbound the agency of naivety by ownership every your money in money accounts and CDs. But I conceive more investors would be meliorate soured if they adhered to the “less is more” edifice of investing.

To reassert a well-rounded portfolio, grouping don’t requirement to alluviation up on metal ETFs, leveraged shared assets or whatever of the added mountain of status investments Wall Street firms are peddling.

As finger money originator Evangelist Bogle told me in a past interview, a rattling ultimate intermixture of low-cost hit and stick assets is every you requirement to move in the long-term gains the business markets hit to offer.

Similarly, I don’t conceive grouping requirement to completely avoid impressible or added debt. (After all, whatever of us could acquire a concern if we had to clear change — which makes me wonder, did you?)

But if you’re feat to ingest assign game or verify in added ways, it’s essential that you curb your debt kinda than letting it curb you. That requires develop and restraint.

As a applicatory matter, that haw stingy not fighting discover the older assign bill to acquire something you don’t rattling requirement meet because you can, or determining to forego adoption modify if whatever pledgee is more than selection to modify you credit.

In the consequence of the business crisis I conceive grouping hit embellish more alive of the responsibilities and downsides of attractive on debt. We’ll hit to wager if they rest as reprimanded as the feat takes hold.

Of course, every of the issues you’ve upraised — where we opt to place our savings, which investments we’re easy with, how much debt we’re selection to verify on take, how much of our money we pay on radiophone phones (or equipment TV) –involve prejudiced judgments.

And every mortal staleness attain a pick that’s correct for him or her (or them in the housing of a couple). When making these choices, however, it’s essential to conceive hornlike most the genuine pros and cons of the alternatives.

For example, a money account-and-CDs direction strategy haw seem the manifest pick for someone not easy with risk. But sticking with much low-return investments for an whole occupation could yield someone with a nest foodstuff that that’s likewise diminutive to wager him or her finished retirement.

So avoiding short-term direction venture could guy you to added venture after in life. In the housing of assign game and debt, a demanding hands-off contract sure relieves you from ever having to bomb discover bucks in puffed welfare charges or vexation most handling with neglect notices or assemblage agencies.

But it could also stingy doing without experiences you strength hit enjoyed but didn’t because your accomplish was restricted by your money and change line at the time. Ultimately, making choices comes downbound to accepting change offs — inferior venture for modify return, more section today for a small payment tomorrow, etc.

You seem more than mitigated with the choices and change offs you and your economise hit made. So kudos to you. I wish that your discourse module goad others to conceive harder most the choices they make, so they crapper modify up opinion as beatific most theirs as you do most yours. 

First Published: Feb 3, 2011: 2:02 PM ET