Talk to a debt counselor toll free:800-300-9550
Our Clients Rate Us Excellent
Based on 3234 reviewsTrustPilot Reviews
What does it mean to put your money on a dietThe big question is, what does it mean to go on this type of diet? The website, HappySimpleLiving.comprovided us with an explanation. According to the site, going on a money diet would mean the following:
- Making a commitment to spend only on the essential expenses. A diet will not really deprive you totally. You will not go without spending - at least not completely. What you will do is to identify the basic necessities that you and your family will require to survive. Take note that this should be strictly what is necessary only.
- Going on a certain period without spending on unnecessary things. Anything that is not part of your basic necessities will not be spent. That is the second aspect of a money diet. You have to keep yourself from spending on the things that are not necessary.
- Saving the money that you will not spend. Since you are not spending on the unnecessary items, you have some extra money with you. To make the financial diet effective, you have to save that money. Do not spend it. Put it aside so it can be used to grow your finances exponentially.
Tips before you start your financial dietBefore you proceed with a money diet, you have to understand the right way to implement it in your life. Just like a food diet, this will entail sacrifices so you can reach your goal. If you choose the wrong type of diet, you might end up going through all the pain for nothing. To help you succeed with your financial diet, here are a couple of tips.
- Define your target. Start by defining your target. Understand why you are going through this diet. Being smart about your finances means you have to start by setting goals. At the very least, this will help motivate you as you are forced to go through the sacrifices that are included in the diet. This target will also help you gauge the progress that you have made.
- Identify the time frame. Nobody can go on a diet forever. You might feel very passionate about it at first but that will soon tire you. Once you feel burnt out by all the restrictions and limitations, you might end up going on a shopping spree - much like binge eating after a crash diet. You can start by making it a week or a month long. Then you can do it consistently and at the same time each year. But do not subject yourself to a long diet if you do not have to.
- Specify the rules. The next step is to clearly state the rules of the diet. Will you strictly refrain from spending on unnecessary expenses? Or will it be concentrated on dining out? Will it be refraining from using your credit card? Make sure you define the rules involved so you will not falter in the middle of the diet.
- Set milestones. You need to set the milestones, not just to track your progress, but also to let you celebrate them. Even the smallest milestones should be celebratedbecause that will motivate you. It will help you look beyond the sacrifices that you have to go through.
- Establish a reward. Knowing that a reward is waiting for you at the end of the money diet is another way for you to feel motivated. It is like a marathon runner - they push forward because they know that there is a medal waiting for them at the finish line. You should make sure that this reward is something that will not compromise or destroy what you have worked hard for in the diet. For instance, if you saved a lot of money because of the diet, do not make your reward too expensive.
- Tell someone. Finally, if you will go on a money diet, make sure someone knows about it. That way, you will get the support that you need. Not only that, knowing that someone is aware of your diet will make you strive to achieve your goal so you can save face.
Sometimes, going on a money diet with debt can be quite distracting. If this is keeping you from the motivation that you need to complete the diet, you should probably try to consolidate all your bills. Simplifying your payment obligations will keep you from thinking about money too much. That will lessen the temptation to use it for other expenses.In case you are not sure if you really need this money diet or not, you need to see this video. It will help you understand if you need to go through this process of restriction or not.