Healthy Spending

Think of managing your personal finances like dieting:

• Calories in/calories out - You only have a certain allotment of calories in any given day. Consume as much as you burn and you'll maintain your weight. Spend as much as you earn and you'll break even.
• Losing control of your weight - Getting into the habit of not exercising and consuming too many calories is far easier than beginning a diet and exercise plan. Similarly, it is far easier to spend money than to cut back.
• Avoid crash diets - When beginning a new routine to obtain a healthier lifestyle, it's important to be realistic. You won't eat salad alone three meals a day for the rest of your life. Smaller, less drastic changes are much more likely to keep you on course and avoid the dreaded binge. As they say: everything in moderation. When trying to cut back on spending, it's much more realistic to implement small changes and set long-term goals than to immediately give up on spending on things you enjoy.
• Know what you're putting in your body - Anyone that has tracked calories has had that moment of shock when something he ate had far more calories than he estimated. Tracking calories typically has the consequence of helping people not only better understand how many calories foods have, but helps people avoid overeating. It's also important to track what you spend. This goes beyond just a checkbook register. Truly tracking how much you spend on a monthly basis on things like groceries, gas, dining out, and clothing will allow you to have a much more robust understanding on where your money goes and where you can begin to make small changes to cut back.