Have you ever gone on a detox? Whether it be for smoking or just eating healthy food. Detox is saying no to any habit that you wish to improve on.
A financial detox or financial cleanse is something similar. You can go on a 30-day financial cleanse to get rid of all unhealthy financial habits you might have and streamline your financial goals and personal finance journey with the new year just around the corner.
Today might be a good time to think about it and take on a 30-day financial cleanse journey, which will help you save a lot of money during the trip and sustain the practices you develop after the 30 days.
Let us look at some things that you can do during your 30-day financial cleanse journey.
- Take a No-Spend Challenge - A no-spend challenge is a great way to accelerate your finance journey and quickly reach your financial goals. While you will have to spend an entire month with a lot of patience and discipline, it is the cost that one must pay to achieve their goals. Avoid spending money on any wants and bring down your needs expenses as much as possible. Make all necessary expenses beforehand so that you have to make minimal cash transactions, if any at all.
- Manage Your Debts - If you are currently under obligation, you should immediately plan to repay it. You should study the various options that can reduce your debt burden, such as refinancing a loan. You should also make it a point to repay your expensive debts (higher interest rates) first. Do not use a credit card or add to your debt unless necessary.
- Review Your Budget - Take some time to study your last few months’ expenses and identify critical areas where you have been overspending. Find ways to cut down on these expenses. If you have a subscription that you do not use, unsubscribe.
- Review Your Portfolio - Take some time to study and analyze the performance of your portfolio. Check if it is in sync with your current financial goals. Look at how diversified it is and check if you need to rebalance some allocations. It is not advisable to do unnecessary transactions because of the costs involved.
- Review Your Financial Goals - Goal setting is essential and can have a substantial positive impact on being disciplined with money. Set some long term as well as short term financial goals for yourself. If you already have, review them and check if you are on track. Think about possible ways to accelerate your journey towards your goals. Review the timelines you have set and match for scope for improvement. When you have a plan of action, you tend to perform well.
- Learn About Good Financial Habits - Money management is an ever learning topic. Read a good book on personal finance management and add one good financial practice to your schedule. Small improvements often show significant results.
