What usually happens when you start to accumulate extra weight? Diet? – Probably yes.
It is the same with personal and/or family finances. If you have a lot of loans, low income and etc. you need to regain your good financial form.
You’d better do it quickly. Or in other words – you need a financial diet. But don’t worry! You can optimise your budget with a few simple rules:
“Weigh” your budget – determine how serious the situation is. Write down your debts on some sheets of paper. Consider how much extra money you can earn in the near future. Once a week look at those papers. This will motivate you to take an action. As well as embarking on a scale motivates you in the struggle with excess weight;
Plan your financial diet – define how you will spend your money in the so-called “economy mode”. Create your own rules. If you find it difficult to control yourself while shopping, get out of home with less money and no credit/debit cards. Change your attitude towards loans – accept that they are debts. So they bring you as many benefits as injuries. Think before you use a credit card or apply for a bank loan;
Reduce the unnecessary spending – If you want your financial diet to be successful, you need to get rid of excess costs. Analyse your expenses and decide how you can save some money. When you know your priorities and you have enough willpower to stick to them, you will go through the hard period of deprivation;
Write down everything – Have you ever exclaimed: “I don’t know where my money went!”? Maybe yes…and not just a single time, right? That’s why you need to document everything. Record your expenses very carefully. It may be a little uncomfortable, but it is very useful. Soon you will be aware of exactly where your money goes;
Consider costs in advance – make a list of purchases. For example, if you are planning overall one off cleaning or carpet deep refreshing, check out what detergents or natural products you already have. Do you really need additional ones? Or if you have decided to prepare a certain meal, buy only the products you will use. Don’t be tempted! In the store – try to choose cheaper goods;
Control yourself – if you can’t, ask someone close to you for help. Remember, like any other diet, this one should be observed as long as it’s necessary. And without any interruptions! This is quite important if you want to have good results.