Parallels can be drawn between losing weight and upping your financial game. Both require perseverance and dedication. Find out how to achieve both goals with one plan.
The last few years have seen the healthcare fad sweep across the world. People are gearing themselves with fitness bands, running shoes, and all other kinds of healthcare gadgets. Flab and fat are giving way to flatter stomachs and toned arms and legs. We know it’s not easy to achieve that perfect beach body. Working out entails surmounting many challenges, mentally and physically. It requires dedication, effort and perseverance. But the end results are worth it.
The same is true of financial management. It seems hard in the beginning, but then as your account shapes up for the better, cost-cutting measures become easier to implement.
Additional Reading: How To Check Your Financial Fitness
This article draws parallels between the process of losing weight and managing your finances. Read on and all the fat will hop over from your waistline to your bank account. Imagine a slimmer waist and a fatter bank account.
Step 1: Come Up With A Plan
You need to set a plan in place before you begin a regime of any kind. Working on your goals without a plan will not lead to desired results. A plan helps you keep a tab of your progress so you’ll know when to make necessary tweaks.
Now, it’s not necessary that your very first plan works wonders for you. It might take a while before you identify what works best for you. It’ll be easier to get into the groove with a plan that matches your personality. With regards to taking care of your health, you might find that a certain workout and diet plan is more effective than others.
The same is true of financial management. If you want to get richer then begin by setting a plan in motion. Look at your finances and see what you need more – cost-cutting or smart investments. If you need to improve your liquidity then making investments won’t help. You will need to cut down costs. Likewise, if your future finances look bleak then you need to look for a good investment plan. Merely saving will not tide you over in the future. The cost of living rises faster than the desert temperatures.
With a plan in place, you need to look for a technique to implement your plan. Perhaps cardio works better for you than yoga stretches. Likewise, there are different budgeting techniques. Make your pick and try them out. Sometimes a combination of two or more budgeting methods could be the answer to your financial problems.
The beginning of everything starts with a plan. So whether it’s weight loss to look slimmer or investing to get richer, you need to start with a plan. Don’t be hasty when making a plan. If you want it to work, spend some time analysing your needs and then give your plan a form. Build it one step at a time.
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Step 2: Cultivate Good Habits
A bad habit never disappears miraculously. It’s an undo-it-yourself project – Abigail Van Buren.
We agree. Achieving your goals has a lot to do with making new habits and giving up your old ones. It’s a dual process. Also, when the goal is weight loss and financial management, your new habit needs to last a lifetime. Stop working out and you’ll gain weight. Let loose with your finances and you’ll slip into debt.
How do you form a habit? You start with baby steps. The first day of a workout routine is always easy. You perhaps begin by running 2 kilometres and then gradually pick up the pace. Within a few months, you are ready to run a marathon. You prepare your body with patience and dedication.
Financial planning works on the same principles. If you have to cut costs, you don’t go ninja on yourself immediately. Start small. Pull back on small costs and give your budget time to adjust to it. Gradually, increase the sum you save. Give yourself and your budget time to adjust to the changes. Patience and dedication.
Remember, extreme measures will strike back. Just like your muscles give way under excess pressure, your finances too will come crashing down under severe stress.
Bonus Read: Everything You Need to Know About The Sovereign Gold Bond Scheme
Step 3: Trap The Temptation
“Temptation is the root of all evil.”
Very true. There are ample stories where men of strong character have succumbed to temptation. Cultivating new habits is not enough to reach your goals. You need to steer away from all things that affect you negatively.
Let’s consider weight loss. If you want to shed those kilos, cook up healthy meals at home. Do this instead of chomping on fried, roadside snacks every day. This will help you save money as well.
Similarly, if you spend a lot on shopping, you must resist the pull of shopping malls and fancy stores. Do not even visit when a sale is on. Giving in to the temptation of frequent shopping is akin to binge eating.
You can link this to the previous step of cultivating a habit. Make it a habit to steer clear of everything that poses as a temptation. Whether it’s food or spending – draw a line between you and all things tempting.
Of course, it isn’t an easy thing to do. It may be hard at first but eventually, you’ll get used it. In fact, over time it will become second nature to you. All you have to do is stay calm and not give in.
With regards to your finances, there is one way to avoid temptation. Automate your life. Automate your bills and others expenses. Make sure your money gets channelled to your investment plans and your Credit Card bills get auto-debited. These moves will leave little in your account for discretionary spending.
Even if you have your basic costs covered, it doesn’t mean you can spend all that is left. Direct some money to your emergency fund before going gaga on shopping and other recreational activities. If you feel you have little left to spend on recreation then work hard to earn more. You can even consider getting a second source of income to boost your financial situation.
Additional Reading: How To Earn Extra Income And How To Use It Wisely
Step 4: Stay Positive
Stay positive. This is extremely important. This is because giving up old, toxic habits for new, healthy ones is not an easy task.
There will be days when going back to your old life will be very tempting. This is when you have to take measures to cheer yourself up. Go for a walk, talk to a friend, do anything that’ll make you happy. Something that’ll take your mind off things.
One way to stay positive is to give yourself little gifts for every milestone achieved. Whether it’s weight loss or financial management, mark your journey with small milestones. Each time you achieve a milestone treat yourself to a day of comfort living. If it’s about your health, indulge in your favourite cuisine or ice cream. It’ll keep you satiated and motivate you to reach the next milestone.
For financial management, set savings and investment targets. Each time you cross a certain number in your account, treat yourself to a day of shopping. Now don’t go blow up all that you saved. Just something small to celebrate the achievement.
You can even club financial management and weight loss. Each time you lose a certain amount of weight and cross a certain limit in your account, go ahead and buy yourself nice clothes. Something that you always wanted but couldn’t because of size and price limitations. Nothing like losing weight and getting rich at the same time.
Additional Reading: How To Set New Fitness Goals For Yourself And Your Bank Account
Step 5: Add-Ons
To better your financial life and physique, you might come up with ideas to do a lot more. For example, at some point, you might decide that you don’t just want to lose weight. You might want to learn a skill while doing so. What do you do about it? You join a dance class, kickboxing class etc. So, while you lose weight you also learn a skill. Add new ideas to your existing plan. You can always tweak it for better results.
For financial management, do not just stick with your regular investment and savings plan. If you see a new, more lucrative investment plan then make the jump. You can do something as basic as getting a new Credit Card. It’ll do wonders for your finances. Try it to believe it. At some point, you might feel that you need to be prepared for your retirement. Once your budget is well balanced, you can start looking at creating a retirement fund.
The moment something comes to your mind, do it. Don’t wait. It’ll all add up well in the end. Yes, these things take time and results are hard to come by. But once you see the results, you’ll be thrilled.
Additional Reading: 5 Best Investment Options For Retirement
Step 6: Don’t Beat Yourself Up Over Mistakes
Nobody is perfect. Even the most dedicated people can make mistakes. You too will make mistakes on your journey. Just don’t beat yourself up too much. Acknowledge your errors and then move on. Harping over it will only make you commit more errors.
Bonus Read: Introduction To Debt Funds
Aren’t these steps simple and easy to follow? Now make yourself a plan to lose some weight and gain some money. To help you kick-start your journey, you can start with a Fixed Deposit account.