Start Your Quarantine Debt Diet

There are many different dieting trends currently out there which guarantee remarkable results. Some have the common catch-phrase, “Drink this before bed for 2-weeks and lose 10 pounds!” While these are great promises for your personal health, what happens to the rest of your life? What if there was a diet for your budget?

There is… ” Do THIS for 1-month after with your budget and spending, and lose pounds of debt!”

Okay, so it is not that simple of a process to fix some budgeting problems which may have crept in during the holidays. However, there are some easy ways to fix or detox your spending habits. This is something Jordan and I have done multiple times after on-going spending due to holidays or other events.

Re-Evaluate

The first step in helping your budget and your spending get back on track is to first admit that you have a problem with your spending. We have talked before about having a weekly or monthly budget meeting. Now is the time to sit down and take a solid look at your recent spending and other account activity. If you have a spouse for whom you are sharing the finances with, it is crucial to have them spend time with you discussing the current status and understanding where you both sit.

Cut Out the Excess Fat

I am not referring to the ACTUAL fat, but rather all of the excess spendings which have been going on. Too often we can get caught up in the spending, and it is hard to differentiate when it is time to stop. Once you have had a chance to review what your spending habits have been over the last few months, take note of the items which were non-essential. Eliminate those from your spending immediately. A simplified version of this would be to simply stick to the essentials of the budget only such as food, clothing, shelter, and common monthly expenses. Do this for at least 2 months to allow your thinking and spending habits to rewire back to what they were BEFORE the crazy spending began.

Don’t Binge After the Detox!

If you have ever been on a crazy diet or detox you can understand what it feels like to come off of it and be ravenous for the nearest calorie-filled foods. The same is true with not spending. You will likely want to spend money to reward yourself for being so good. DON’T, just don’t. Instead, review how well you have been doing and congratulate yourself on a job well-done! You do not want to risk undoing what you have just done through one act of buying something expensive.

These are tips for those of us who have already taken steps previously to work on a budget and to begin getting out of debt. If you are reading this for the first time without a proper budget or plan for debt, please check out some of the other posts such as:  Create a Budget That Works! or Cooking Up a Budget – From Scratch.