Know All About the Financial Diet That Can Help You Manage Finances Like a Pro
If you want to learn how to become financially secure, this book is a must-read. If you find yourself unable to peruse this book due to time constraints, you can read free book summaries or listen to free audiobook summaries.
Today’s society and lifestyles are all about consumption. When it comes to financing, budgeting, or investing, there is little to no advice, leaving us with no option but to shirk our financial duties and responsibilities. This book “The Financial Diet” gives us small tips and tricks to help point us in the right direction.
The don’ts of expenditure
These four habits listed below are a big no when it comes to making expenditures. Not committing these mistakes is a good start to maintaining a good financial balance.
Firstly, using credit cards to pay when there is no guarantee if we can pay off the credit card debt within a month.
Secondly, spending money on unnecessary things and making expenses over our budget.
Thirdly, spending money without ensuring how much balance we have in our accounts.
Fourthly, not saving right from the first day.
Creating a budget
This step can feel restricting and can be time-consuming. But, making a budget will give us a clearer picture of our income, our expenditure, and our savings. This will let us know whether we are living in excess or deficit. While it sheds light on our current financial condition, it also lets us know about the unnecessary expenditures that could have been prevented. In the long run, it will be extremely beneficial to us and help stabilize our financial condition.
It is true that we work and slave our youth away trying to earn money. But The Financial Diet suggests making money work for us. And the simplest way to go for it by investing money, and preferably as soon as possible. Because saving money and investing while we are still young means giving money more time to multiply.
Investing, as complicated as it sounds, is a much simpler concept. However, there are two steps to be followed before we start investing. Firstly, we need to set up an emergency fund. We need to ensure that a fraction of our savings go to the emergency fund because we never know when we might require it. Secondly, paying off our debts. Unless we have fulfilled this requirement, we will never have money left to save. After these two steps, we can go for retirement accounts and Individual Retirement Accounts as starting points. If we get a good grip on these, we can go for investment in low-risk funds or go directly for individual stocks. Investing will make our money work for us. In short, our money can double itself without us working hard for it.
Investment in our careers
Only hard work will give us that financial security that we desire. As such, we need to invest in our careers first by acquiring the right set of skills that will help us climb higher and put us at an advantage over others.
For freelancers, The Financial Diet suggests finding a mentor to guide us through the basics. Secondly, they suggest networking because it is only networking that will help us gain our clients. A great way of networking is volunteering our services. Volunteering is important not only for freelancers but also for paid workers. This creates goodwill in people’s hearts and gives us a boost in our image. Fourthly, negotiating our price. Though this might be a little tricky, it shows good professionalism.
Our food habits
According to The Financial Diet, we should learn to control our dietary habits. Many people find it difficult to cook and prefer to rely on take-outs for their meals. Our generation, especially, is more interested in trying out exorbitant recipes that we see on the Internet than creating a simple meal using locally available ingredients. This habit can rack up huge expenses and can destabilize our financial situation.
As such, the author suggests, going for local produce and home-cooked meals. They are healthy for our health as well as for our pockets. We will automatically see a huge reduction in our expenditure which means more savings.
Being honest about your Finances
We are always dreaming about owning luxurious items and spending our money on the most exorbitant goods. However, we need to be honest with ourselves about our financial condition and learn to dream accordingly. Needlessly wasting money on unnecessary things is only going to increase our debts and worries. So, it is best to be honest about our financial conditions, not just to ourselves but also to our friends and relatives, so that we are never pressurized into financial situations that could prove troublesome for us.
Using these few tips and tricks as suggested by this book, we will surely find ourselves living a more stable and secure life.