As a boy in junior high, I used to mow lawns in my neighborhood to make money during the summers. The lawns where I grew up were very small and would only take about 20 minutes to mow, but I would haul in $15 per lawn (pretty good for a 7th grader in those days!). I remember the great feeling of getting that cash in my hands after another week’s worth of lawns were done. At the end of the week, I would take 1/3 and set it aside for church, 1/3 set aside for savings, and would use the remaining for spending money. This taught me valuable lessons growing up on the importance of both saving and giving. Unfortunately, some of those lessons wore off when I was introduced to credit cards at age 18. I had to relearn some of those valuable lessons, which was painful. But with getting ahead financially, just like with losing weight, comes making necessary sacrifices to reach our goals. Lifestyle Change Required! When trying to reach our target weight, crash diets are no good! You need something more consistent, more like a lifestyle change with eating and exercise habits to make the change last. In personal finance, however, sometimes a cash diet (not a crash diet) is necessary to get the ball rolling to help you reach your goals. This doesn’t mean you will always live with a cash budget (although you certainly could). Oftentimes when folks are in debt, they continue to use their credit cards and wind up spinning their wheels with their debt. By taking a credit card fast, and using cash for every single purchase, you can begin to purge some of the negative spending habits you may have caught. Before you embark on a cash diet, you’ll need to take care of some necessary budget planning. Working Within Your Budget Budgeting usually isn’t fun, but it is a necessary part of getting ahead financially. It is essential to help you understand cost cutting ideas, where you can reduce expenses, and how to achieve your financial goals. It can also help you with your cash diet. Unfortunately, it seems like too many folks these days don’t work within their budgets, which means when emergencies arise they are forced to do things they shouldn’t do – like borrow from their 401k or take an early IRA withdrawal ! When is the last time you reviewed your budget? My wife and I are in the process of reviewing ours again as we look for areas to cut back in order to save for a new goal – a swagger wagon . Just the other day, my wife reminded me while grocery shopping that we were in “cut back” mode. Needless to say, I had to put something back on the shelf! Sometimes it takes big sacrifices in order to meet your goals, and other times it takes little ones. Either way, understanding your budget and aggressively saving is the long-term answer to make the financial changes necessary to reach the goals you have. Here are some additional resources to help you reach your goals: 10 Money-Saving Tips to Stash $10,000 10 Free Household Budget Spreadsheets 15 Ways to Cut Your Expenses Have you ever been on a cash diet? What do you think of them? Photo by epSos.de Related Articles: 3 Things to Overcome to Reach Your Financial Goals Is It Possible to Manage Credit Cards Well? 7 Ways To Get Serious About Personal Finance How To Set Strong Long Term Financial Goals 7 Steps To Help Get Out Of Credit Card Debt We’ve Earned $73/month Cash-Back From Our Debit Card Jason writes at Redeeming Riches where he helps others Restore Their Money and Renew Their Minds . If you want to learn how to save money be sure to subscribe to to catch more of Jason’s posts! The articles on this site are for entertainment purposes and should not be taken as financial advice. Please contact a financial professional for specific advice regarding your situation. Also, many of the CPF articles help us pay the bills by using affiliate relationships with Amazon, Google, eBay and others. Find out more here .
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Is It Time to Go on a Cash Diet?