Could a financial diet be just what we need to curb excess spending? Does the 5:2 diet work just as well for our finances as our waistline? Read on to find out…
October is upon us. The giddy heat wave of the summer feels like a distant memory and our minds are turned to all things comfort. Be that food, clothing or spending. As Christmas creeps ever closer, the glossy magazines are full of the latest diet promising to help us get party ready. At Magenta, we don’t believe that a person’s weight has any bearing on their value and celebrate everybody and every body. However, when it comes to finances, we could all probably do with trimming the fat. As part of our ‘no-spend’ October, we’ve taken some of the most popular diet plans out there and given them a financial twist. Could embarking on a fiscal fast help you to achieve your long-term financial goal? Let’s find out with part one…
5:2
Tremendously popular in recent years, the 5:2 diet proposes participants embark on two lower calorie days a week followed by 5 days of regular eating. The idea behind the diet is that by restricting yourself on two days and eating normally the rest, a calorie deficit will be created. Financially thinking, we can see how this mentality could work. Committing to curbing your spending on two days a week could drastically cut your expenditure. The flexibility of this approach is particularly appealing. If you have certain days of the week where you find yourself over spending, say a shopping fuelled Saturday or on your Wednesday work time wander, then the 5:2 could work for you. Just remember to make sure the other 5 days are not spent making up for it. The key to this working is extreme restriction across 2 days and sensible spending for 5.
16:8
This approach is popular in the diet and fitness industry. 16:8 encourages people to fast for 16 hours and eat within an 8-hour window. Most people approach this with a fast from waking up to 12pm with normal eating commencing between 12pm-8pm. The lure of this approach is that, with a restricted time window, you will be less likely to graze and eat over your daily-recommended calories. Putting a spending spin on this, this is an approach that could work very well for those of us who tend to fritter away the cash. If you’re a commuter consumer (those train station coffees and passenger purchases soon add up) or a bed time buyer (just a quick browse here, an impulse purchase there) then restricting your spending to a specific window could not only help reduce your outgoings but help steer you away from those, often regrettable, impulse purchases. Knowing that you can’t complete on a purchase may force you to reflect on what you really do need and what purchases are made in haste or boredom. This approach works well for those who do shift work as the hours can be switched around to those most suitable for you.
Hmm, there’s certainly some food for thought there! Join us for part 2 as we cast our financial eye over some other popular diets. If you’ve enjoyed this article, please comment and share with friends and family.