They say if you don’t diet enough, there is a possibility for your body to suffer a massive failure. Well oddly enough, dieting is always associated with food and weight control, but the changing trends of the changing world create a necessity of dieting in various domains. Of these domains, an essential one remains the financial diet.
So, why a financial diet? To begin with, going as per what Benjamin Franklin said once- ” beware of little expenses; a small leak will sink a ship.” Sometimes it is hard to recognise these gaps and what is worse is that sometimes it is difficult to fill these gaps. It does not matter how petty your salary is, what you do with that petty salary matters more than the sum.
So those who don’t believe in dieting so far, it’s time to make the necessary amendments in their finances with the following tips.
1. First things first- a plan
“Failing to plan is planning to fail “ according to Alan Lakein. The first and foremost step to a guaranteed success is a perfect plan, or a plan that can be brought into action. If you plan precisely, half your work is done. So do not neglect this pre requisite of succeeding in meeting your goals of the financial diet- plan appropriately.
2. Setting “realistic goals” should be primal
If you have been spending 100000 a month and you plan to bring it to 20000, it would only be a folly. However, if you plan to cut it to 90000 in the first month and gradually reduce it by say 5000 every month, it would be a much better idea than the former one and more importantly, it would be a goal that you can easily reach. So choose your goals cautiously.
3. Remember that its research before investment and not the other way round
If you follow the latter, trust me you are on a perfect path that leads to failure. As a thumb rule, you are supposed to know your investment, which will only come by an extensive research before investing and not after investing. So to be able to invest in a better and saner way, run a research!
4. Today and not tomorrow is the time to save
There are a few things which you cannot leave for tomorrow. Saving your hard earned money is one of them. It can rather top the list if you go by experiences of highly successful people. If you want to achieve the goals of your financial dieting, saving is not something which can be procrastinated.
5. Giving up the unnecessary always helps, even if it is a habit
Brian Tracy once said that “successful people are simply those with successful habits”. Observe and analyse which of your habits are the ones which are just equivalent to throwing your money in trash. Remember, that money once gone does not return ever. Even one wrong habit can make your dieting a mess.
6. Your debt is one big hurdle you need to evade from, NOW!
If you ask me to give you a list of what all is holding you back, debts would occupy a high position in that list. Your debts can wreck your finance and your financial dieting. So pay your debts and pay them on time. Out of all your expenses, it is your debt which should be managed and cleared as soon as possible.
7. Want one word solution? It is called “organisation”
Remember when you were a kid and your mother told you to get organised? It did have much more to it than just clearing the mess for her. Organisation is one habit which will make you successful wherever you are and in whatever you do. So if you have a “to do” list, add “get organised” to it.
8. Your focus should be longer than this moment
It is easy to think of “just now” but what will help you will be a focus in the long run. It will give you a better aim and a better means to plan. Besides, one greater advantage that will come out of thinking in the long run is that even if you fail in a few short term goals, your focus would be unscathed. A few failures would only be your stepping stones up on which, you can re build all that you want to.
9. Know what you own before owning some more
A lot of moolah is gone in buying things which you do not need. Remember, with one wrong expense, you can devastate months in terms of finance. Before you spend your money, make sure you are spending it over things which are only going to be of use to you rather than merely occupying some corner of your house.
10. Keep a spending journal
A lot of successful people attribute their success to keeping a journal that contained all their expense management besides all their planning and management. A journal can work wonders for your life in general, besides saving you from bankruptcy. So record all your fiscal aspects in your journal.
11. Be accountable for your spending
No one is asking you to submit your finance management to someone but then you need to know that you and only you are responsible for every penny that you let out from your pocket. Keep this in mind because this is one thing you cannot you can pass on the blame for on to someone else.
In the end I would only like to quote what a wise man had once said- “being in control of your finances is a great stress reliever.” So let the stress go and manage your finances wisely. Do not forget that the very first step of your financial diet begins with managing the very next penny that you are about to spend.