Is it time for a financial fast?

Is it time for a financial fast?

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By Bromwich+Smith Staff | 945 words | Reading Time: 2 minutes, 37 seconds | Date: 2022/06/03

As we look ahead to summer and all it entails you may be wondering how to pay for that vacation you were looking forward to, or helping your child buy a car after graduating or supporting a wedding and ultimately it starts with financial planning. To help pay off debt or improve your spending habits it might be time for a financial fast.

What’s a financial fast?

A financial fast is a short-term ‘financial cleanse’ that helps you get your finances back in shape. 

The thought of a financial fast comes from, The 21-Day Financial Fast: Your Path to Financial Peace and Freedom, written by Michelle Singletary. The fast spans over 3 weeks, and some of its main points are that you should:

  • Only pay for items with cash
  • Only buy what you actually need
  • Keep a spending log to track your purchases
  • Pick a way to become debt-free
  • Create an emergency fund

What are the Pros and Cons of a financial fast?

Here are some of the advantages and disadvantages of a financial fast:

Pros of a financial fast:

  • Taking control of your finances and saving money
  • Reducing your credit card charges
  • Gaining awareness of your existing spending habits

Cons of a financial fast:

  • Serious debt problems can’t be solved in 21 days—if you immediately go back to your old ways, you’ll be back at square one
  • It calls for a lot of change in a short amount of time, which could be off-putting for some
  • It doesn’t focus on positive credit card habits, which have the ability to raise your credit score

4 tips for financial fasting success

Here are a few tips for making your financial fast a success:

  1. Have a support group: surround yourself with people who have your back and will be there for you in achieving your financial goals. Which means, you  may need to create boundaries with that friend who’s always trying to convince you to go on a shopping spree etc. 
  2. Avoid spending triggers that can make you spend frivolously. If seeing influencers and ads on Instagram makes you want to spend with reckless abandon, consider deleting the app for a few weeks or setting up a time limit to lessen your scrolling. 
  3. Create a budget: Are you making more than you’re spending? If not, you may want to tweak your spending habits and solely focus on the essentials. There are several different budgeting methods, including the 50/30/20 rule, which suggests putting 50% toward what you need, 30% toward what you want, and 20% toward savings and debt repayment.
  4. Focus on essentials vs. wants: regardless of the budgeting approach you take, you’ll want to minimize spending on desires over necessities. There’s a big difference between what’s essential and what’s discretionary. Take time to focus on the things you really need to spend money on, like groceries and rent, and the things you could probably give up for a while, like fancy dinners out and extra-foam lattes. 

Remember that you are not alone, if you are facing overwhelming debt. Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, or

 

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