Detoxify Your Financial Health

Recently my aunt went on a three-day fruit detoxification program. She had been toying with the idea for some months and, after a routine check up with her doctor, she decided to take charge of her health. To embark on this detoxification program she had to reduce or eliminate processed foods: meat, sugar, dairy and caffeine from her meals and adopt a meal plan rich in vegetables, fruits, nuts, and seeds, while increasing her water intake. Although detoxification seemed extreme, after the third day, she was in good spirits and felt energetic, light and alive.

Similarly, a financial 'detoxification' helps to flush out the wastages and overlaps in your financial planning. It can reveal the weaknesses or gaps in your financial health so that you can take the necessary action to improve the situation. The easiest and simplest way to do this is to start with a new personal budget. As part of the detoxification program: ruthless, 'clean- break', honest personal and family budgeting will be required.

A personal budget is a finance plan that allocates income towards expenses, savings and debt repayment. However and this is where its gets hard...to really create wealth you need to get your family to financial health as well. Keeping track of your own expenses is daunting enough, monitoring the spending of an entire family takes extra effort and commitment. If you start small and involve everyone in the process, you will be on your way to a working family budget and a plan for your financial future health.

So how could one do it?

1. Track your monthly expenses.
2. Do an easy budget and keep at it.
3. Include the whole family.
4. Analyze, cut out the unnecessary and get saving.
5. Evaluate by breaking your budget requirements into two columns: Needs and Wants. And honestly ask the question: Do I need it or do I want it? If answered truthfully it will become clear that by addressing the needs first, the detoxification of your financial health will start.

WANTS

NEEDS

1. Overseas Holidays
2. Eating Out
3. Extravagant Gifts
4. Unrealistic Investment Schemes
5. Shopping Sprees

1. Daily Living Expenses
2. Emergencies
3. Retirement
4. Additional Bond & Debt Repayments
5. Affordable Family Getaways

All surplus income can now be allocated towards meeting your Wants (guilt-free)

Remember: commitment, consistency and sincerity hold the key towards your success. The present is the best time and opportunity to do just that! While knowledge is power, it is the application of knowledge that is the most powerful. Start detoxifying your finances now!

Silke Financial Services are skilled risk and investment strategy consultants that provide a unique service offering not available elsewhere in the marketplace