Are you struggling with your finances right now? You aren’t alone. It can be extremely hard to feel like you are on top of things all the time. That feeling of having your personal finances out of control requires a drastic approach to fix. Going on a “financial diet” may be a great solution to gaining economic stability!
What is the Financial Diet?
The Financial Diet is actually a book and blog co-authored by Chelsea Fagan and Lauren Ver Hage. It is guide for beginners on how to get good with money. Sometimes you are in dire straits and you don’t know where to start. By creating the idea of a financial diet, you can do emergency intervention on your finances like you would for an unhealthy diet.
The writers have developed concrete first steps to get you closer to the kind of financially well-off individual you want be. They have ten basic commandments that you must follow on a financial diet. And after twelve months dedicated to these rules, you will see serious improvements in personal finances and overall quality of life.
The Ten Commandments of the Financial Diet
One
You absolutely need a budget of some kind. No matter how much money you have, you won’t have control over it if you don’t know how much you make or where it’s all going each month. Have a category for every expense and adjust it when it needs adjusting.
Two
Be familiar with your credit score, all your investments, and all of your debts. You want to know what you will need to pay off including credit cards, student loans, medical debts, auto title loans, and your mortgage. This will help you know where you’re at and what progress needs to be made.
Three
Buy less things on a day to day basis. Instead of buying higher quantities of items, focus on purchasing based on quality, versatility, and usefulness. Be aware when you are spending to feel better, what could you do instead with that money?
Four
Make your spending decisions with long-term goals in mind. Forsake your daily Starbucks indulgence by thinking about a big vacation you want to take next year!
Five
Budget for when you want to treat yourself. Reigning in indulgence purchases and splurging can be a major part of strategic financing. Ensure these expenses are rare moments you can look forward to.
Six
Start acquiring skills that can minimize your spending. Learn how to cook for yourself and make or repair things that you’d usually just buy. Limiting the amount you spend and maximizing what you save is essential to a financial diet.
Seven
Diversification is key. That means you ought to make sure that you have an emergency fund set aside, a side hustle to bring in extra income, and a Plan B for if your current income falters.
Eight
Make short-term financial goals that can help you reach your long-term goals. When you are actively moving towards a goal that you can accomplish more readily, the more likely you are to stay motivated to growing your finances. Ask what you can do today to make next year’s financial goal happen.
Nine
Make sure you don’t forget to develop a life you love, one filled with options and freedom. This should be your priority, not just simply acquiring more unnecessary items.
Ten
Spending too much one week won’t completely ruin your financial diet, just like eating too much ice cream one night won’t ruin your nutritional diet. Feeling guilty won’t get you far, so it’s important to just keep moving forward despite small slipups.
For more of our great articles,
The Advantages and Disadvantages Of Saving Money
How Anyone Can Make Extra Money
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