In today’s world, where we are constantly bombarded with advertisements and encouraged to spend money, it can be difficult to take a step back and assess our spending habits. A “financial fast” is an excellent way to do just that. It involves a period of time in which you deliberately avoid spending money on nonessential items to improve your finances and help you spend more mindfully. Here are some benefits of a financial fast:
1. It Helps You Identify Your Spending Triggers
One of the main benefits of a financial fast is that it forces you to take a closer look at your spending habits. By going through a period of time without spending money on nonessentials, you will likely find yourself in situations where you would normally spend money if not for your fast, such as going out for lunch with colleagues or browsing online shopping sites. This can help you identify your spending triggers and become more aware of the situations where you tend to spend money unnecessarily.
2. It Enables You to Save Money
Cutting out nonessential spending saves you money. This gives you an opportunity to kick-start your savings and build up an emergency fund or work toward a specific financial goal, such as paying off debt or saving for a down payment on a home.
3. It Encourages You to be More Creative
When you can’t rely on spending money to entertain yourself, you may find yourself getting more creative with your time and resources. This can be a great way to discover new and rewarding hobbies or interests or ways to solve problems without spending money.
4. It Reduces Stress and Anxiety
Money is often a significant source of stress and anxiety, and a financial fast may enable you to find clarity around your relationship with money, as well as your spending habits. By focusing on your financial goals and avoiding unnecessary spending, you may feel more relaxed and more in control of your finances.
Finally, a financial fast can help you become a more mindful spender. By taking a break from unnecessary spending and focusing on your financial goals, you can develop a better sense of what you truly value and what you can do without. This can help you make better financial decisions in the long run and avoid overspending on things that don’t bring you true happiness or fulfillment.
Think of a financial fast as an opportunity to hit the “reset” button on your finances. Whether you embark on a financial fast for a week, a month or longer, you are sure to reap the benefits of this powerful financial practice.
WAEPA’s Free Financial Wellness Program
WAEPA members have access to a free Financial Wellness Program through our partnership with Ernst + Young (EY). This program includes access to tools and financial advisors to help manage day-to-day finances and work towards long-term goals.
Founded in 1943, WAEPA provides current and former Civilian Federal Employees with exclusive Group Term Life Insurance and Short-Term Disability Insurance. WAEPA members have access to resources, tailored specifically to the needs of Feds and their families. Today, more than 50,000 Feds and their families choose WAEPA to be there for life’s biggest moments.