Is your weight gain about more than the food? Overeating is often a symptom of something else going on in your life.
It can be anything from money issues to relationship issues. Money management should be on your list for creating a fit life.
Unhealthy finances are a big reason that a person can experience major stress and are overweight. But there is hope. There are some tools you can use to reduce debt and change the way you think about money.
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It is a common belief that it can be difficult to lose weight and pay off debt at the same time, but it can be done. The plan has to be simple to you d not have added stress.
Just because you may not be in a position to pay off debt or save money, you can still stop the bleeding by coming up with a plan to control your spending.
Financial management consists of 3 things…controlled spending, debt repayment and saving money for retirement and unplanned expenses.
The goal of this module is not to focus on personal finance. But since money can be the source of stress it deserves to be talked about.
After all, you are trying to get yourself into a position where you are not constantly feeling stressed out.
Here is an easy way to make decisions about financial management.
Start by making a list of all the expenses you pay each month. Now, look at some of the other things that you may spend money on regularly. Add those things to the list as well.
These “other things” might include eating out, the new pair of shoes you buy each month and your unused gym membership.
Now, it is time to create a 50/30/20 budget. I know, I know…just the name sounds scary, but it is really simple.
There are many ways you can look at your finances, but 50/30/20 starts with your after-tax income (the cash you can hold in your hand each month).
Simply put, 50% of your income goes to necessities, 30% for wants and 20% for savings and debt.
For example, if your “paycheck” is $6,000 each month, your necessities should be covered with 50% of this amount or $3,000. What should you consider “necessities”?
Necessities are expenses that you absolutely must keep in your budget no matter what.
These include things like housing, utilities, transportation and health care expenses; at least the minimum payments on your debts; and the bare minimum of basic clothing and supplies for living.
What is a want? It is the category where you choose what you “want” to spend your money on.
These are things like dining out, alcohol, cable TV, internet, shopping trips, vacations, memberships, subscriptions, gifts, entertainment and other luxuries.
The savings and debt repayment category includes money you set aside for your future or to pay off debt faster than required.
You can use this money to build an emergency fund, save for a down payment on a home, invest for retirement or pay off your student loan debt or credit card more quickly than required.
There are many ways you can budget or analyze your finances. So why do I recommend, the 50/30/20 method of budgeting?
Because it is simple and flexible. You can complete a simple worksheet in 15 minutes or less.
Getting bogged down with lots of details can lead to stress and confusion and that is exactly what we are trying to avoid.
Make a list of your needs, wants and savings/debt repayment and see where they fall in the 50/30/20 method of budgeting.
If your needs are higher than 50%, you may need to reduce your wants category to less than 30% until you can get your needs in line with the recommended 50%.
If your needs and wants combined are less than 80%, you may want to consider adding the difference to your savings and debt repayment category.
Flexibility and simplicity are the real beauty of the 50/30/20 plan for managing your money. It is a great tool for keeping financial stress at a minimum.
Your finances do play a part in your overall health, small corrections are a step in the right direction while you focus on your physical and mental health.
Money (or lack of it) may not seem like it has a lot to do with your health, but it all goes back to stress. Being concerned about how you are going to pay the bills or put food on the table is just another form of stress.
Money management may take practice. And there are several financial gurus that can tell you what to do and the best way to do it.
Consumer debt freedom and building an emergency fund will be the 2 things that will bring the biggest peace of mind when it comes to managing your money.
Get out a piece of paper and list your take-home income at the top and find out if you are spending within your means.
If you are not, take the time to make the necessary adjustments So you can pay your bills, save for a rainy day and possibly take your dream vacation.