Try the Cash Diet in 2019
You’ve heard of all the diet crazes that are out there – paleo, keto, Whole30, low-carb, etc., etc. Diets fad come and go but there is one health plan you should get on board with that will benefit your wallet in the long run.
In addition to improving your physical health in the New Year, consider adding the Cash Diet to your list of resolutions.
“Just cash?” you say. Yep! Try it out for a month and see just how much money you regularly spend when you could be saving. Here’s how to go about the Cash Diet:
Set aside the most important funds
Before you begin this diet, figure out how much income you bring in every month. Ideally, you won’t be in the red. Then, round up the money you need to pay for bills, debt, and your emergency fund. The remainder of that month’s income is what you will use for your other purchases – using cash, of course.
Preplan your spending
Everyone’s income is different but regardless, you’ll need to plan out how to make your cash flow last for the duration of a month. Whether your leftover available income is $600 or $1,200, you must divide this money up over the next four weeks. Look at your spending habits and guesstimate how much you’ll need for gas, groceries, transportation, fun money, and so forth. During this Cash Diet, you will not be able to rely on your credit card to fill in the financial gaps.
Record your spending
Throughout this month, you’ll have some “Aha!” moments when you look back on how much you spent and on what. That’s why it’s so important to record where your money is going. You may be amazed by how often you buy unnecessary items, expensive food, or big buys. Once you identify where you need to cut down on spending, you’ll see your savings grow.
Compare how much you spend with cash versus card
The problem with using a credit card for the majority of your purchases is that it doesn’t feel as concrete as cash. Cash is more physical; you won’t have as much in your hand with each purchase you make. With a credit card, you don’t see how much you’re spending until you get a statement in the mail or log into your credit card account online. Using cash to pay for items and experiences will make you realize that each dollar is valuable.
Identify where you fall short
At the end of the month, or even just after a week or two, you’ll be able to identify patterns and habits in your spending. Perhaps you’ll notice that you eat out a lot when you’re stressed and don’t have enough time to cook, or you treat yourself to the spa too often, or buy clothes you don’t need more frequently than you realize. Completing the Cash Diet will help you become more money-wise, grow your savings account, and teach you that you are truly in control of your budget.
New Era Debt Solutions has settled over a quarter of a billion dollars of debt since 1999 and wants you to be our next success story. If you need assistance achieving financial freedom, contact one of our friendly counselors at New Era Debt Solutions to learn more about finding the debt relief option that best fits your needs and budget. Our counselors are with you every step of the way.