It’s probably no secret that, as consumers, many of us struggle to get ahead financially. Often, we have the tools that are required to improve our savings and finances but we just don’t know how to start. So what do you do if you find yourself in this situation? Continue reading to find out three things about spending fasts that can help you improve your finances.
What‘s a Spending Fast?
A spending fast is when you cut out all spending that is not directly tied to your necessities. A necessity would include mortgage payments, car payments, insurance, food, medicine, utilities, fuel, etc. This means that impulse buys and other non-essentials like fast food, knick-knacks, your daily coffee fix and any other extras won’t be purchased during your fast.
Of course, it’s up to you to decide which purchases are absolutely necessary versus which ones aren’t. Additionally, when starting your spending fast there are also other things that you should consider.
The first is how long the fast will last. Since the goal of your fast is to make a significant impact on your expenses, ideally it should last for one or more months.
Then after you’ve decided the length of time, you should decide if and how you’re going to substitute for anything that you’ve chosen not to spend money on. For example, if haircuts from the salon are out, then will you do your own haircuts or do you have someone else who might agree to chip in by helping for free or a reduced cost?
After the Fast
When your spending fast is over, you should more than likely end up with some residual savings. So it’s good to already know what you’re going to do with any savings accumulated during your fast. For example, will you use your savings to start a rainy day fund or will they be used to pay down debt?
If you factor these things in before starting your spending fast, then chances are that you’ll have a successful spending fast. We hope that you’ve enjoyed this post.
By the way, we’re curious on what you think about spending fasts. Be sure and let us know in the comments section. Thanks! And don’t forget that if you’d like to stay up to date on the latest applique, budgeting, and fashion tips that you can do so by subscribing to our newsletter or RSS feed!