Financial Fasting 101

The pandemic taught us many things, one of which is that it’s important to have financial security. But, as most of us know, with great financial security comes great financial responsibility. One of the quickest ways to save money is to go on a financial fast. Let’s discuss!

What Is a Financial Fast?

Financial fasting refers to cutting back on nonessentials and saving a larger portion of your income. After bills and utilities are paid, it’s recommended that 50% of your remaining income should be put into savings. The other 50% of your income can be spent on other essentials and activities. Feel like cutting back more? Try saving 70% of your income after you’ve paid your bills.

Pros and Cons of Financial Fasting

There are both advantages and disadvantages of a financial fast.

Pros:

1. You can regain control of your finances and savings.
2. You can gather insight as to where you tend to spend money.
3. You can feel good about having money saved in case something happens.

Cons:

• Serious debt issues may require a different approach.
• Financial fasting is a quick change that can be scary to some.

Financial Fasting Tips

Here are some tips to get you started.

Eat for Less

If much of your spending is on food (especially eating out or takeout), save money by shopping your cabinets, pantries, and freezers to use what you already have. When it comes to grocery shopping, only buy what you need. You can also cook meals in larger batches with more cost-efficient ingredients and store bread, fruit, and vegetables in the freezer before they go bad.

Steer Clear of Triggers

Spending triggers, that is. For instance, if watching a Target haul on TikTok inspires you to go shopping, avoid it for now.

Get Organized

Not only does going through old drawers and closets remind you of what you already have (and don’t need to buy), but you can also find things to sell for some extra cash.

Essentials vs. Wants: Know the Difference

In theory, you probably already know the difference, but sometimes lines are blurred when putting essentials vs. wants into action. An essential is something you need, like groceries. An essential is not a latte from your favorite coffee shop every morning.

Get Support

A financial fast takes time and patience. That said, surround yourself with people who support you in your quest for financial security and create boundaries with those who encourage frivolous spending.