Do You Need to Go on a Financial Diet?

Where can you trim?

BLACK COUPLE WORKING OUT

(Image: ThinkStock)

Recently, a colleague shared that he wanted to purchase a loft — to do so he moved out of his expensive apartment in the city and moved into a more modest space in the suburbs. I was quite surprised, even more so when he stated “I am taking a step back to make a giant leap forward.”

I really thought about what he did which was smart, but thought his attitude about it was the best. It made me think about how many of us need to go on a financial diet.

It is so easy to get used to a certain lifestyle, expensive car or apartment, extravagant dinners and high-end wardrobes. But what happens when you need to save money for something or if you need to make a change? It could be a decision to purchase a home, go back to school or to get your financial house in order.

You may have to decrease your spending now to achieve a much larger goal later. Take a look at your financial lifestyle. Do you have the expensive car, but don’t own your home? Do you run out of money before your next paycheck? Are you lacking an emergency fund?

Now is the time to go on a financial diet for your greater good. Maybe get a smaller apartment, when the car lease is up get a less expensive car, do a little less clothes shopping and put that money to better use like buying a condo or beefing up your savings.

Don’t look at it as a negative. Look at it as sacrificing now so you can enjoy even more down the road.

Black Enterprise Columnist Jennifer Streaks is a Financial Expert, Author & Pundit. Continue the conversation by following her on twitter @JStreaks or visiting her website at www.JenniferStreaks.com.

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