5 Tips To Putting Your Spending On A Diet

March 4, 2014

Debt Management

While bodily diets constantly change, a budget diet is consistent. Though there are many options to tightening the budget belt, all will work if implemented properly.

While losing weight sometimes feels like a gambling game, cutting the cord on your spending will actually yield results.

1. Save More Spend Less

It sounds simple, yes? And in truth, the principle is simple. Cutting your spending habits off like a bad habit will increase your savings. Learn to spend money only on the necessities rather than the extras. Curb those shopping cravings with other practical projects. It becomes a win/win of saving money and completing those projects that have been left unfinished for months.

2. Learn How To Budget

But, for those who are already skimping and feel like there is little left at the end of the month, spending even less than what is already being spent appears nearly impossible.

At this point, create a monthly budget. Even though most people are generally able to calculate their net earnings by their expenses, actually writing it down will provide a written, readable analysis of your month’s purchases.

For one month, write down everything you have spent, what it amounts to, and how that number compares with your income.

Next, create a budget or spending allowance for each necessity (determine what your necessities are: car, food, home, etc.). Continuing to keep a record functions as an accountability check.

3. Get Yourself Out Of Debt

If your binge spending habits have gotten out of control, you are most likely dealing with a bit of debt. Getting out of debt is the first priority, otherwise it is likely you will never be able to catch up and make ends meet.

Because of the way debt works, the interest generated amounts to a significant number each month. Unless you can get ahead by making large payments, it is easy to drown in debt’s added interest.

For those in a significant amount of debt, depending upon interest rates, taking out a loan to pay off a loan is an option. While that might seem counterproductive, some loans, like a second mortgage or title loan from a company like TitleMax.com, have less interest rates than the interest accruing on the credit card bill.

Paying off the larger sum of interest with another loan means more savings in the long run. Yes, there is still a loan to pay off, but it will be easier with more minimal payments.

4. Make Substitutions

Just like you would swap out fruit for chips when on a nutritional diet, swap out the bar and eating out for a beer and cooked meal at home. Instead of spending happy hour after work at a restaurant, invite your friends over to kick back at your home. Not only is it cheaper, it is a more relaxed atmosphere.

5. Treat Yourself

The best way to keep your budget in check is to allow yourself a reward for doing well. Without an incentive, it is too easy to have a moment of weakness and blow the budget entirely.

Exercising some restraint will yield the results you have been looking for.

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