It’s Time To Go On A Personal Financial Diet
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 reality of the issue if that many of us need to be on a financial diet. Is it the right time to shed those extra financial commitments you made when times were much rosier?
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.
On the other hand it is probably good to reward yourself with small indulgences from time to time, just to take the drudgery out of the “diet”. In fact it might be a good idea to budget for these little indulgences. Just try to stay within the budget and you’ll be rewarding yourself while staying with the plan.
Watch financial advice videos, and financial news videos at CVNMoney.com -
- Howard Brule
