Personal Financial Diet Can Turn Things Around
There is a lot of negative talk in the financial blogosphere right now. Discussion is rampant about slow economic growth, the poor housing market, mortgage foreclosures, and the increase in bankruptcies. Concern about looming financial instability is rampant.
The truth is, many of us need to go on a personal financial diet. Is it time to shed some of that extra weight? In good times we all tend to extend ourselves a bit more than we should. Then when the inevitable slow down hits we have no choice but to cut out the fat.
Similar to dieting, re-establishing financial control is mostly a psychological affair. You have to decide on a workable battle plan that determines how much you will spend and what you intend to sacrifice. At the same time you will need to develop methods that will help you follow the plan.
One of the most important rules of financial dieting is to avoid binge spending. Once you’ve developed a slimmed down budget, don’t succumb to the kind of impulsive buying we all get caught up in when we’re flush with money. If it’s not in the budget, don’t buy it.
At the same time, we’re all human and we make mistakes. If you do slip up and buy something you don’t really need don’t berate yourself. Just go back to your economic plan and be wiser next time.
In fact you might consider bringing the fun right into your plan. It can often be beneficial to compensate yourself with small perks or indulgences on occasion, just to take the daily grind out of the “diet”. Just try to stay within your budget. That will give you the satisfaction of splurging and the sense of accomplishment that comes with meeting your goals.
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- Howard Brule
