LIFE & COMMUNITY money talks
Do Cash Diets Really Work?
The answer is: Please—does any diet ever really work? Here are helpful strategies for taking control of your finances and setting yourself up for long-term success.
TEXT STACY YANCHUK OLEKSY
THE WORD “DIET” can easily send anyone who has wanted to lose weight into a state of anxiety. The reaction to a cash diet is similar. Perhaps we didn’t pay attention to where our money was going, we got carried away with online shopping or we overspent for a special occasion, and now the bill has come in. We plunge straight into panic mode and head into a vortex of stinking thinking DERXW KRZ FDUHOHVV ZH DUH DQG JR IRU WKH TXLFN ¿[ a cash diet. “I’ll stop spending, then it’ll be OK,” we tell ourselves. But diets, whether for food or money, don’t always work for long. They start a cycle of bingeing and purging, depriving and indulging. Financial comfort, on the other hand, is about balance and control. It’s about setting achievable goals, creating a realistic spending plan and living within RXU PHDQV ,W LV SRVVLEOH WR JHW EDFN RQ ¿QDQFLDO track by managing your money without starving your spending. Here’s how.
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DECIDE HOW YOU WANT TO FEEL ABOUT THE WAY YOU SPEND MONEY.
PUT YOUR CREDIT CARDS AWAY—FOR NOW. Go back to basics
FIND OUT WHERE YOUR MONEY IS GOING. Our budgets die
MAKE A PLAN. Every
ALLOW FOR SOME GUILT-FREE PURCHASES. Give
and pay with cash (or debit). Only when things are on track again should you use credit (to get the incentive points we all covet).
a death of 1,000 cuts as we buy little things such DV FR̆HH DQG OXQFK :ULWH down everything you purchase. Yes, it’s more fun to spend money than it is to track it, but this is key for taking control.
Do you want to be in control? Safe? Charitable? Once you know your monetary values, you can make decisions that align with them.
dollar you earn needs to serve a purpose—savLQJV ¿[HG DQG YDULDEOH expenses—otherwise, it invites irresponsible spending. So create a budget and allocate each and every dollar.
STACY YANCHUK OLEKSY IS THE DIRECTOR OF EDUCATION AND COMMUNITY AWARENESS AT THE CREDIT COUNSELLING SOCIETY. VISIT MYMONEYCOACH.CA FOR MORE INFORMATION.
50 OCTOBER 2017 | CANADIAN LIVING
yourself an allowance to spend on anything you want, but remember that once the money runs out, that’s it! You’ll have to wait till next month to indulge yourself again.
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