When you are a pre-diabetic, you have to remove any items from your food list to bring your blood sugar level back to normal. Likewise, when your financial condition is not stable, you have to cut back on your spending to improve it.
Here comes financial fasting. It is known as a technique to cut down on your inessential spending to control your finances. When you have to bring your blood sugar level back to normal, you stay away from sugary food for at least a month.
Now the question is how long the financial fasting should last. There is no particular length of time because it ultimately depends on how long it takes to get back to a sound financial decision. Here are some of the rules for financial fasting:
- Buy things that you need. You will have to completely cut back on your wants like eating out, movie halls, bars, night entertainment, and the like. You should spend money only on food, housing, medication, and other necessities. In other words, you can say that you have to live off a lean budget.
- Use only cash for all of your purchases. As long as you are on financial fasting, you should not use your credit cards. Using cash can prevent you from overspending.
- Have a spending log with you. Make sure that you keep noting down all expenses so you can track how much money you have already spent and how much you are left with for the rest of the expenses. Keeping tabs on your expenses is crucial even if you are living off a lean budget.
Here are the tips to make it successful.
Just following the rules are not enough to make it successful. Here is what you need to do to shoo in.
Identify needs and wants
As you know, you are to spend money on needs only unless you achieve your goal. It is paramount to identify the difference between needs and wants. For instance, your needs can vary from the other people.
For instance, while going to the salon cannot be necessary for you, others may consider it a need because of their profession. It is crucial to understand what is essential for you and what you can shrug off as your want.
You should write down your needs and wants on paper, so you do not have to decide at the time of purchase. This is a great way to understand the difference between them. If you have already noted it down, you can easily tackle your temptation. For instance, if your friend has asked you to dine out, you can politely turn down the offer.
Just because you have created a list of your needs and wants, it does not mean that you can achieve your goal. You will have to stick to it. Show some responsibility. There should not be any room for flexibility. Otherwise, there is no point in financial fasting.
Your friends may persuade you to go shopping or bar, but you know why you deny them. Even if they scorn you, make sure that you tackle them without breaking your financial fasting rule.
Of course, this does not go to continue until your last breath. You will have to stick to it unless you see improvement in your financial condition. Once you have taken control over your spending, you can stop it.
It is normal to be tempted to go to the cinema, shopping hall, and nightclub. After all, you want some fun in your life. When you have the worst temptation, remind yourself that it is just a matter of days that it will end up.
After all, you are doing it to be financially stable. If you succumb to your temptation, you will increase your trouble. This will make it more challenging to spend money on entertainment and fun activities down the line.
Many people do not realize how it is hitting their spending capacity, which is why they rely on unsecured bad credit loans with direct lenders to meet most of their needs. If you do not want to get into a debt trap, you should overcome your temptation.
Financial fasting does not need to be more than a month if you stick to your goal. With these tips, you can make it successful.