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Most of the talk in the financial blogosphere is pretty negative these days. Just about everybody is talking about the slowing of economic growth, the stagnant housing market, increased numbers of bankruptcies, and the looming recession.
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?
Just as with dieting, keeping your finances under control is mostly a psychological battle. You have to create a plan of attack where you detail how much you’re going to spend and what you’re going to give up. Then you have to develop techniques to keep yourself on the straight and narrow.
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.
On the other hand, we are all human, and that means we all fall victim to temptation from time to time. Don’t get down on yourself when your will power slips and you buy something you swore you weren’t going to buy. Just put it behind you and get back to the plan.
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.
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[...] Financial Diet Plan Could Solve Your Problems Financial Diet Plan Could Solve Your Problems March 29, 2008 – 5:04 am by Howard Brule Most of the talk in the financial blogosphere is pretty negative these days. Just about everybody is talking about the slowing of economic growth, the stagnant housing market, increased numbers of bankruptcies, and the looming recession. 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 ros [...]