Budgets Are Not Fad Diets: A Path to Financial Health

Maintaining financial health shares many similarities with maintaining a healthy diet, yet the consequences of straying from a financial plan can be far more significant.

When you indulge in something with poor nutritional value, your body often responds quickly, like an upset stomach. While the discomfort is temporary, the taste of that fried fair food was undeniably delightful. Humans often justify indulgences that aren’t good for them long-term because we crave immediate satisfaction.

Now, substitute fair food with an expensive concert, fancy clothes, or another form of immediate gratification. While you might not experience a quick stomach pain, you’ll feel the pain when the credit card bill arrives.

To help you maintain a healthy financial life, here are 9 simple steps you can take today:

1. Stop Comparing Yourself to Others

Constantly looking at what others have and comparing yourself is a surefire way to undermine your financial health. Focus on your own goals and circumstances. DIY when possible and invest the savings for something important to you.

Comparing self to others

2. Recognize and Address Bad Habits

Justifying bad spending habits is your brain’s way of lying to you. Recognizing this behavior is the first step to avoiding repeated mistakes.

3. Write Down Your Plan

Whether you choose paper or a digital program, writing down your budget plan is crucial. In this modern world, going 100% digital can be particularly effective and convenient.

4. Review Your Spending

Take a close look at your spending through credit card statements, bank accounts, and other payment formats. The facts are right in front of you every month – don’t deny their existence.

5. Separate Needs from Wants

Distinguish between what you truly need and what you simply want. For example, you need food, but do you really need to eat out 20 times a week or pay a premium for home delivery?

Wants versus needs

6. Consider the Cost of Convenience

There is often a cost to convenience. Review what tasks you can do yourself to save money.

7. Choose Quality Over Cheapness

While it’s tempting to go for the cheapest option, it might not always be the best choice. For instance, having car insurance is essential, but opting for the lowest cost might leave you with unexpected problems if you need to file a claim.

8. A lifetime of Discipline

Fads come and go, but discipline can last a lifetime. Reward yourself for achieving savings goals and take pride in reaching what’s important to you.

Discipline and review

9. Review Often

Remember to revisit your budget at least once a year or whenever you experience life-changing events, whether for better or worse.

By following these steps, you can maintain a healthy financial life and avoid the pitfalls of immediate gratification. Stay disciplined, stay focused, and enjoy the long-term benefits of financial health.

 

Ian Goldey, the author of this article, brings over three decades of experience as a private wealth manager, assisting families with their financial planning. He has applied this extensive knowledge, along with his partners to create WhenIDie.com, a digital platform that simplifies the entire process of death planning and more. Try it free for 30- days. Apply this code 2024BLG15 for a 15% discount!

 

Legal Disclaimer

The information provided in this blog is for general informational purposes only and is not intended to be tax, legal, or financial advice. Readers should not act upon this information without seeking professional counsel tailored to their individual circumstances. While we strive to ensure the accuracy and reliability of the information presented, we make no representations or warranties regarding its completeness, accuracy, or current applicability. The use of this blog does not create an attorney-client or accountant-client relationship. For personalized advice, please consult a licensed attorney, tax advisor, or financial professional.

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Budgets Are Not Fad Diets: A Path to Financial Health

A spreadsheet for hardcore finance geeks that want to analyze and track past performance of various asset classes. Users of this free template can customize and update for their own personal needs.

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Budgets Are Not Fad Diets: A Path to Financial Health

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Budgets Are Not Fad Diets: A Path to Financial Health

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Budgets Are Not Fad Diets: A Path to Financial Health

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Budgets Are Not Fad Diets: A Path to Financial Health

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Budgets Are Not Fad Diets: A Path to Financial Health

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Budgets Are Not Fad Diets: A Path to Financial Health

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Budgets Are Not Fad Diets: A Path to Financial Health

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Budgets Are Not Fad Diets: A Path to Financial Health

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Basis – is the dollar starting point

Depreciating Method – DB-SL is for Declining Balance Single Line

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Self-Explanatory single page workbook.

Summary Returns Multi-Index

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Income

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Budget

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Try and buy, safe and secure with no selling of client privacy. Cancel at any time…but you won’t want to because we are going to do everything possible to make you happy with support, new features, fast updates, and listening to users for how to improve! Android or iOS