This post may contain affiliate links. Please read my disclosure for more information.
Now that schools are back in session, all those summer vacations and weekend parties are out the window. So, is there a better time than now to go on a money diet?
We often hear about people going on diets—whether to fit into a wedding dress or look great for the summer. A money diet works the same way. It’s a short-term challenge designed to cut back on unnecessary spending and get your finances back on track.
Table of Contents
What is a Money Diet?
A money diet is similar to a food diet. It’s when you intentionally focus on cutting out unnecessary expenses. While similar to creating a budget, it takes a different approach. A financial diet is more of a short-term reset, where you aim to curb wasteful habits quickly. A budget, on the other hand, is a detailed, long-term tool designed to help you manage your money over time.
For example, I love stopping by the cigar shop now and then, and while I’m out, I’ll often grab some wine for my wife or treats for the kids. These aren’t part of my budget, but they’re things I enjoy doing.
Why Should You Go on a Money Diet?
If you’ve noticed your credit card balances creeping up, you’re splurging more on non-essentials, and your Empower dashboard is showing a sharp drop in your net worth, it might be time for a money diet. Maybe the markets aren’t the only thing impacting your finances—there could be wasteful spending sneaking in, and you may need to rebalance to stay aligned with your goals.
This year, I’ve felt my spending going off track, almost like how it was before I got serious about my finances. Here are some of the biggest (and necessary) expenses I’ve faced for my home and yard:
- Roof replacement: $9,080
- Riding lawn mower: $3,021.84
- Cordless chainsaw: $128.52
- Weed wacker: $188.75
- Pool chlorine: $342.84
- Lawn dethatcher: $129.59
I hope these tools will last a long time and eventually pay for themselves. Except for the lawn dethatcher, which decided to burn out just as I was about to use it for the second time this year!
How to Get started
Start by committing to a no-spending month. Don’t deprive yourself of essentials, but stick to the goal of cutting out unnecessary purchases. While you’re at it, take a look around your home and see what items you can sell to declutter and bring in extra cash.
If you can successfully stick to a financial diet for six months, you’ll not only see significant savings but also start embracing a simpler lifestyle. Over time, this new approach to spending can become second nature, helping you achieve long-term financial peace.
How to Avoid Feeling Deprived
Think about what truly brings you joy—what would you do if working for a living wasn’t necessary? Unless you’re in your dream job, there’s always room to explore new passions. Even if you love your work, why not keep growing and learning? Sometimes, simply shifting your focus can make everything else fall into place.
For me, photography and reading have always been my outlets. Without my camera or books, I’m not sure what hobbies I would enjoy more. I love capturing moments, freezing them in time, and then revisiting those memories years later. It brings me a deep sense of joy and nostalgia.
When it comes to reading, I can never get enough. Books offer endless wisdom through the experiences and guidance of others. They’re like treasure troves of knowledge. While artificial intelligence (AI) is becoming more prevalent and people increasingly rely on computer-generated systems for information, there’s something timeless about learning directly from the insights of individuals.
Books remain my go-to for personal growth and inspiration.
Use the time for personal growth by focusing on the activities you love and diving deeper into your passions. You can enrich your life without feeling deprived, even while sticking to your financial goals.
Challenges and Expectation
I’ve long embraced the no-spending mindset. When I first started paying off my debt, it was the most effective approach to reducing it. You never know what financial surprises might come your way, and now, with a home and a dog, the stakes feel even higher.
Fortunately, with my wife’s support, I’m confident we can stick to this plan, just like we’ve done before. It won’t be easy, but the goal is more important than the challenges ahead.
Tools and Resources
MINT: I used to rely on the MINT app to track my expenses, but I found it frustrating due to frequent delays in updating my financial information. Eventually, I stopped using it and switched to one of its competitors, You Need A Budget (YNAB).
YNAB: This app was a better choice at the time. It functions similarly to MINT but operates on a monthly subscription basis. Unlike MINT, YNAB doesn’t suffer from constant account disconnections, and its alerts are timely.
Empower: This has become my personal favorite. It lets you connect all your financial accounts, track your money, and—best of all—provides a real-time overview of your net worth.
Credit Karma: If there’s one app that can keep you in check, it’s Credit Karma. While its primary purpose is to monitor your credit score, it goes beyond that by offering personalized suggestions to help you get back on track. It can even recommend the best credit cards tailored to your financial situation based on your current score, helping you make smarter financial decisions.
Journal: Writing down your thoughts and plans creates a sense of accountability, as your subconscious feels compelled to follow through with the tasks you’ve outlined.
What to Expect and How Long Should You Stay on a Money Diet?
A money diet is designed to reset your spending habits, and the duration depends on your financial goals. You can start with a no-spending month or a 52-week money-saving challenge. However, if you’re facing significant debt or looking to rebalance your finances, committing to at least six months will make a noticeable difference.
For me, I’m committing to a money diet for the entire school year. Based on my calculations, it’ll likely take longer than that, but by the end of the year, I should be far enough along that I won’t feel the need to continue dieting.
The goal is to get back on track—aiming for at least 50% progress—without making major changes to my budget. The key is to start small and build momentum over time until I reach my financial goals.
Have you ever tried going on a money diet? If so, how long did you commit, and what were the biggest changes you noticed in your spending habits? If not, what would motivate you to start one?
**Valuable Resources I Use Daily:
Empower offers a free account to assist you in managing your net worth and investment portfolio. Your asset allocation and portfolio performance are so obvious and easy to grasp that I can't get enough of them. It's an excellent tool for anyone keeping track of their investments.
Robinhood is a platform that does not charge commissions. You can start investing with as little as $1 in stocks, ETFs, and REITs. It's simple to operate and navigate. Sign up now to receive a free stock.
Gio founded TheGrowthFocusedGuy in January 2020 because he was fed up with debt.
His mission is to document his journey to Financial Independence in order to motivate and inspire others to get out of debt and begin building generational wealth.
