Most people wouldn’t link spending and dieting, but there can be a connection. The following guide will help you understand what this is, how it might benefit you, and how to start this diet.
What is a Spending Diet?
Okay, you need to know what this diet is. Basically, it’s a period of your life where you won’t spend as much as you normally would. A person who decides to start this type of diet might do it for various reasons. Some people do it to reach a new year’s resolution while others do it because they’ve spent too much.
Now, there is no set timeline, so you can choose how long you are going to be on this financial diet. Now, it’s not the easiest diet to incorporate into your life, which is probably the reason why it’s considered a diet. As you know, most people can’t commit to diets, and most folks have been accustomed to spending all of their lives, making it a hard habit to halt.
How Can a Spending Diet Help?
A lot of good comes from separating what you need from what you want. For example, it could help you learn to appreciate the things in life that matter, or it can help you stop misplacing value on some things you own. You’d be surprised how many people spend money on status rather than what matters in life.
A spending diet can also help you get out of debt and closer to financial freedom. Whether you are working to pay down student loans, mortgage payments, or apply for an installment loan, cutting back on spending can help you pay off your debts once and for all.
Steps to Start This Diet
For whatever reason, you’ve decided that going on this spending diet is the best decision to make, but now you aren’t sure how to go about it. The following are a few steps you should take to get started:
Set a Timeline
The first thing is to set your timeline. This is up to you, but it may be a good idea to start small, like maybe a week. Track your progress during that week to see how well you did. If you got through your first week successfully, add a second week and keep going.
Identify Needs and Wants
The next thing to do is to identify your needs and add that up to see how much you can spend during your diet. Be brutal with your list of needs. For example, you don’t need to eat out when you can make food at home.
You don’t need to buy plastic silverware or paper plates when you can just clean your regular utensils at home. You don’t need extra clothes when you’ve got clothes at home. Paper towels aren’t necessary because all you need is to clean a cloth more often. You don’t need entertainment subscriptions since you can simply watch free TV. You don’t need a gym because you can exercise at home.
Share Your Budget
You should find a partner to help you, which could be a friend or a family member to share your budget and plan with. Go ahead and share your list of needs vs wants. The reason you are doing this is to have this person hold you accountable. It’s going to seem easier to deny your wants when a partner helps you recognize how non-essential they are.
Be strong and patient with yourself because this diet can be hard to keep. The key is to continue even if you mess up from time to time.