The economic crises have become talk of town. Everyday starts with the news of bankruptcy or job cutting. It’s really painful as the people are suffering like anything. But do you really think that the recession came all of a sudden? There should have been some alarming system to bang our minds before such a horrible situation to come, don’t you think so?

Let’s get this point cleared by the dieting experience of ours. When we go out for a party or to have a rest to the kitchen, we never think of the dieting system. We just eat what our tongue order us and even make a fun of those foods which cent percent are unhealthy for us. We do it regularly, for many days. Even we don’t care about compensating the calories by exercise or walk or jogging etc. All of a sudden we caught into the health trap and became a strong customer of the cholesterols and blood pressure problems. Now what? Here we arrive to the similar situation of recession.

There is a thumb rule that even if you had some dangerous foods, put some extra effort to burn those calories and to be fit and fine. Similarly, with the financial health it is required that you must have at least 6 months of living expenses in cash. Is this so in our case? Almost all the country did the same job which ultimately ended in the recession. Dieting is the only option to come out from the fat and cholesterol problem. Same way, savings is the only option to come out from the recession effect.

The common human problem is that when you start dieting, your tongue starts to rebel. It becomes highly difficult for you to survive in the diet system. A high will power and also an urge to make a healthier health can only take out from the tongue crisis. There are various ways of dieting but the most important is the commitment of the person. Now, let’s compare the unhealthy financial issues, to come out from the financial cholesterol and bankruptcy blood pressure, you ought to have savings dieting.

The moment you’ll think of savings numbers of question will thrash your mind like

I don’t have money to pay debts, how will I save?
In this financial scenario, to talk about saving is like talking about a sea in the desert.
Savings are never useful in the immediate needs.
When the whole stimulus package of $780 trillion is not working for the recession removal, what this $10 or $20 is going to do?
Savings means compromising the life style.
Saving needs large cut off even in the necessary expenditure.
Same as diet system!! But, don’t worry, as we do in the diet system to remove the fats on the body, we’ll have to take some steps to remove these fats of the mind. Take care of some steps which are actually hazardous for the saving criteria.

Never make big cut offs in the normal living style.
Don’t force family members to join in, explain them and let them decide.
Don’t ever make compromise in the necessary or the routine expenditures.
Let it be $20 per month, just star it and more importantly, make it a permanent system.
What we do in the diet system is a gradual shifting of foods, same way a gradual shift of money from the unnecessary expenses to savings.

As we have chef for cooking the nutritious food, we can also have an online service to deposit even the smallest amount of $20. Set up an automatic savings plan that transfers small amounts out of your checking account and into a competitive interest savings account each week or each month. There is great no-fee, no minimum; FDIC insured savings accounts such as ING Direct and FNBO Direct.

Using the diet analogy, when you are on a diet you keep a record of everything you have eaten. Same way, you keep just a record of what you shopped during the week or so and then you will surely realize that there are so many expenses which are easily avoidable without making any big compromise with the regular life style. Just analyze the list and make changes at your comfort.

Remember, initially diet aso is the toughest looking job but when you start seeing the results of fitness, the dieting habit rocks. Just spare some time to happen. Here also, saving may seem to be an impossible thing these days but even the savings of $20 per month is enough for the future problems as even the $20 makes the difference when it comes to compound interest.

So, as you take down your cholesterol level and pressure level down to the minimum and maintain it, keep the minimum of six month living expenses in a savings account at any point of time.
When you do start investing, the same principle applies but this time it is called dollar cost averaging. You set up an account, choose a few mutual funds and set up a transfer of, say, $100 a month. That way, when the price of the mutual funds is high, your $100 buys fewer shares and when the price is low, the $100 buys more shares.

As the dieting system works nicely and make the life longer and sweeter, the savings system will also show you its magic in some months or in few years.

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