Fiscal Fitness: Eliminate Debt with 10 Successful Diet Principles

Photo by aussiegall

Recently I’ve been studying the habits of successful dieters — people who’ve lost 30 lbs. or more and kept it off. And in reading a recent Get Rich Slowly article, I realized that the same successful principles these people follow are the same ones that will get you out of debt and keep you out of debt.

Debt dieting and weight dieting are exactly the same.

Personally, I’m doing both, and it’s striking how similar the two practices are. I allowed myself to get lazy and get into debt with bad spending habits, and now I’m trying to work it off (debt-free by early next year!). I also allowed myself to get overweight with bad eating habits (and a lack of exercise) over the course of several years, and now I’m trying to work it off (flat stomach by early next year!).

Let’s take a look at the 10 habits and principles of successful dieters — again, people who lost a lot of weight (at least 30 lbs., but many over 100) and kept it off (see National Weight Control Registry for one of my favorite sources of info on this).

Count calories. It seems difficult, but it’s not really, and it works.
Weigh in weekly. Daily weigh-ins work for weight maintenance, but really you should weigh in once a week when you’re trying to lose weight.
Exercise. Almost everyone who loses and keeps off weight incorporates more physical activity.
Watch less TV. TV makes you fat. You can probably figure out why.
Write down goals. If you put your goals down in writing, and make them specific, you’re more likely to actually achieve them.
Log their eating and exercise. Writing down what you do really makes you more aware of it, and motivates you to do better.
Public accountability. By telling others about your goal and your progress, either in some type of program or an online group or just your spouse and friends, you motivate yourself to do well.
Baby steps. No one gains 100 lbs. overnight, and you don’t lose it that way either. Take small steps to eat healthy and get more active, and one step at a time, you’ll get closer to your goal.
Lifestyle change. You can’t go on a drastic diet or exercise program and expect to sustain it. It has to be small, gradual changes that you can incorporate for life. You’re not restricting yourself, you’re changing the way you live.
Rewards. You have to find (non-food) ways to reward yourself. Treat yourself without blowing your calorie limit.

So how do these weight-loss principles apply to debt elimination? You probably can see by now that every single one will work in the same way. Let’s take a look:

Track spending. It seems difficult, but it’s not really, and it works. I’ve done it, and you can really see where your money goes. And it makes you more aware of your spending.
Check-in weekly. You could actually do it monthly, but balancing your checkbook once a week really helps you to stay on top of your budget. And keep a graph of your debt elimination, updated weekly, so you can watch your progress.
Income. Almost everyone who loses and keeps off debt incorporates an increase in income. It’s like exercise: you still need to diet (or control spending), but exercise (increased income) helps burn off the fat (debt) faster.
Watch less TV. TV makes you spend. You can probably figure out why.
Write down goals. If you put your goals down in writing, and make them specific, you’re more likely to actually achieve them.
Budget. You really need to plan your spending, and log it to make sure you’re following the plan.
Public accountability. By telling others about your goal and your progress, either in some type of program or an online group or just your spouse and friends, you motivate yourself to do well.
Baby steps. No one gets into $30K of debt overnight, and you don’t lose it that way either. Take small steps to be more frugal and earn more, and one step at a time, you’ll get closer to your goal.
Lifestyle change. You can’t drastically change your spending habits overnight and expect to sustain it. It has to be small, gradual changes that you can incorporate for life. You’re not restricting yourself, you’re changing the way you live.
Rewards. You have to find (inexpensive) ways to reward yourself. Treat yourself without blowing your budget.

If you follow these 10 principles of dieting to help you get out of debt, you’ll be successful, without a doubt. They’re working for me, and they work for many others.

Maintenance Phase
Once you’ve lost the weight, or eliminated the debt, how does your life change? Well, I haven’t gotten there yet for either, but from my research, here are some things that others have found:

You should still track. Although you’re no longer in the intense weight-loss or debt-elimination mode, you don’t want to go back to your old habits. Tracking helps keep you aware of what you’re doing, and keeps you sticking to good habits.
You have more leeway. Once you’ve lost weight, you can indulge in treats more. Similarly, once you’re out of debt, you can spend on indulgences a little more. But you can’t go overboard. Do it in moderation, and stick to your new, healthier habits.

Has anyone else found these principles to be true for both goals? Let us know in the comments.

If you liked this article, please bookmark it on del.icio.us or vote for it on Digg. I’d appreciate it. :)

See also:

Fiscal Fitness: Eliminate Debt with 10 Successful Diet Principles

Photo by aussiegall

Debt dieting and weight dieting are exactly the same.

Count calories. It seems difficult, but it’s not really, and it works.
Weigh in weekly. Daily weigh-ins work for weight maintenance, but really you should weigh in once a week when you’re trying to lose weight.
Exercise. Almost everyone who loses and keeps off weight incorporates more physical activity.
Watch less TV. TV makes you fat. You can probably figure out why.
Write down goals. If you put your goals down in writing, and make them specific, you’re more likely to actually achieve them.
Log their eating and exercise. Writing down what you do really makes you more aware of it, and motivates you to do better.
Public accountability. By telling others about your goal and your progress, either in some type of program or an online group or just your spouse and friends, you motivate yourself to do well.
Baby steps. No one gains 100 lbs. overnight, and you don’t lose it that way either. Take small steps to eat healthy and get more active, and one step at a time, you’ll get closer to your goal.
Lifestyle change. You can’t go on a drastic diet or exercise program and expect to sustain it. It has to be small, gradual changes that you can incorporate for life. You’re not restricting yourself, you’re changing the way you live.
Rewards. You have to find (non-food) ways to reward yourself. Treat yourself without blowing your calorie limit.

So how do these weight-loss principles apply to debt elimination? You probably can see by now that every single one will work in the same way. Let’s take a look:

Track spending. It seems difficult, but it’s not really, and it works. I’ve done it, and you can really see where your money goes. And it makes you more aware of your spending.
Check-in weekly. You could actually do it monthly, but balancing your checkbook once a week really helps you to stay on top of your budget. And keep a graph of your debt elimination, updated weekly, so you can watch your progress.
Income. Almost everyone who loses and keeps off debt incorporates an increase in income. It’s like exercise: you still need to diet (or control spending), but exercise (increased income) helps burn off the fat (debt) faster.
Watch less TV. TV makes you spend. You can probably figure out why.
Write down goals. If you put your goals down in writing, and make them specific, you’re more likely to actually achieve them.
Budget. You really need to plan your spending, and log it to make sure you’re following the plan.
Public accountability. By telling others about your goal and your progress, either in some type of program or an online group or just your spouse and friends, you motivate yourself to do well.
Baby steps. No one gets into $30K of debt overnight, and you don’t lose it that way either. Take small steps to be more frugal and earn more, and one step at a time, you’ll get closer to your goal.
Lifestyle change. You can’t drastically change your spending habits overnight and expect to sustain it. It has to be small, gradual changes that you can incorporate for life. You’re not restricting yourself, you’re changing the way you live.
Rewards. You have to find (inexpensive) ways to reward yourself. Treat yourself without blowing your budget.

If you follow these 10 principles of dieting to help you get out of debt, you’ll be successful, without a doubt. They’re working for me, and they work for many others.

You should still track. Although you’re no longer in the intense weight-loss or debt-elimination mode, you don’t want to go back to your old habits. Tracking helps keep you aware of what you’re doing, and keeps you sticking to good habits.
You have more leeway. Once you’ve lost weight, you can indulge in treats more. Similarly, once you’re out of debt, you can spend on indulgences a little more. But you can’t go overboard. Do it in moderation, and stick to your new, healthier habits.

Has anyone else found these principles to be true for both goals? Let us know in the comments.

If you liked this article, please bookmark it on del.icio.us or vote for it on Digg. I’d appreciate it. :)

See also:

Posted on 9 October 2007 in Finance & Family |
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Comments (28)

Shawn Ward Says:

October 9th, 2007, 8:20 am

Fantastic post! You guys nailed this one… (big credit to JD over at GRS)…

If I could add one more step to the process - it would be:

11. start today

So many of us fall into the “I’ll start on Monday” trap - and that can last weeks, months, years - waiting for that perfect time to start.

Jeff Lilly | Druid Journal Says:

October 9th, 2007, 8:30 am

The parallels are indeed striking, but there’s at least one place where they break down. You said that “no one gets $30,000 in debt overnight”… Well, I’m here to testify that it happened to me. We had a terrible time trying to sell our house, and when we finally did, we took a definite loss on it. Suddenly, instead of sitting on a huge non-liquid asset, we were in debt. That was two years ago, and we still have the debt… and no house. :-) Don’t get me wrong — we have a wonderful place to live, we have a great income, and we’re slowly getting out of debt. The “baby steps” principle still applies. But debt, unlike fat, can hit you hard and fast.

t Says:

October 9th, 2007, 8:33 am

You’ve got it exactly right. And from 6 years out into the maintenance phase, I can tell you it works, and it lasts.

Logging really is just an unbelievably important part of it, for me. I never understood why, and it sort of bothered me. A couple years ago, though, I read Howards Rachlin’s “The Science of Self Control”. It really change how I looked at the mechanisms I use to control my own habits and behaviors. I’d highly recommend it.

Rebeca Says:

October 9th, 2007, 8:52 am

Hello Leo! What an original simile you’ve come up with! You’re absolutely right, the principles of dieting and saving are the same. i wonder then why I’m in good control of my personal finances and yet I’m so bad at dieting, I cheat all the time! Even if I know that the scale will speak the truth for me!

Rebeca Says:

October 9th, 2007, 8:53 am

By the way, I forgot to add that the similarities would have appeared more striking if you had placed them inside a two-columned table instead of two lists. But the article is very good nonetheless.

The Dividend Guy Says:

October 9th, 2007, 8:56 am

Good article - the public accountability is important - especially if you are married or with someone. Making sure all people are on the same page and after the same goals in the household is very important.

Jen Says:

October 9th, 2007, 11:17 am

Persistence is the name of the game in both of these goals!

freefrombroke Says:

October 9th, 2007, 12:40 pm

I’ve seen the association between weight and debt for some time. Saving money is no different than watching your calories. Look at our country overall - personal savings are at an all-time low and obesity rates are at an all-time high. The discipline is the same for both. I think the biggest step is a lifestyle change. If you’re maintaining a budget or maintaining a diet you need to look at your lifestyle and adjust it for the long haul.

Amol Says:

October 9th, 2007, 13:09 pm

Dieting simply put: Eat less
Financial dieting simply put: Spend less

Maggie Says:

October 9th, 2007, 13:30 pm

This is a great post! Thanks so much for the comparison. I’ve had no problem keeping off the 70 lbs that I lost off, but this month (for the first time in a few years), I’ve been unable to pay all my credit cards off in full. This scares me a lot, because I’ve gotten into trouble before with things like this snowballing, so your post gives me hope. I was able to lose and keep the weight off…I just need to nip my debt in the bud and get it taken care of now.

Bill Ellingsworth Says:

October 9th, 2007, 13:55 pm

Great comparisons! Funny, you know both but when brought together, the similiarity is “frightening.” I’ll have to watch my weight :)

Steve "The Debt Settlement Man" B Says:

October 9th, 2007, 14:08 pm

Wow very interesting post, I love the analogy seeing that these two problems(debt and diet) seem to be something that most people go through at some point or another.

Todd Says:

October 9th, 2007, 14:42 pm

Hi Leo– REALLY nice post, and I see the similarities. I would add one more though: the synergy between healthy eating and healthy spending, meaning: to lose weight it is beneficial to eat the healthiest of foods while to limit debt it makes sense to spend on only things that benefit you. I think this could be a good 11th! Thanks for the article! (ps, I wrote a really good article on the 5 healthiest foods for health on my blog…check it out)!

Gates VP Says:

October 9th, 2007, 15:53 pm

I’ve posted about this exact similarity elsewhere, though I like the 10-part list.

Personally, I’d like to take it one step further and say debt and obesity have the same emotional drivers. This is a generalization, but I’ve just seen the combinations of overweight/in debt and fit/in the black too many times to chalk it up to coincidence.

Which actually leads me to conclude that the most important hurdle to long-term success after the “loss process” is to have a fundamental emotional driver that will keep the new habit. I believe that this is the primary reason for the “rebound effect”.
I’ve been up and down with weight and in and out of debt, but the fundamental reason has always been a lack of impetus to behave otherwise. If I didn’t want to live to be a hundred or drop down to 3 days/week when I hit 40 then I wouldn’t be able to keep up the good habits.

Of course, some people actually never generate this impetus and simply replace the debt addiction with a saving addiction. Then you get the impulsive misers who litter the Personal Finance blogs and you’re not better off.

The impetus for both debt and weight management are often the same or overlapped (i.e. living to be 100 requires both). So to everyone on a weight/debt loss plan, please figure out why you’re doing this while you’re losing all of this weight/debt and then you’ll actually be able to keep it off, b/c you’ll then you’ll never want to exist any other way. :)

Productivity Blog Says:

October 9th, 2007, 17:24 pm

What I liked most is to share your position with someone else. If you are telling someone about your financial position everyday, even for the sake of not giving a bad news you will walk that extra mile and control your spending…

Ferris Says:

October 9th, 2007, 17:29 pm

I’m more radical, I cutted all the fats and carbohydrates and lose 10kg in 5 weeks, plus I began to run 4/6 km per day.
Now I’m going everyday to the gym and lifting some halters to gain muscle, and I’m going to the long haul to have then bigger than never.
Radical and Extreme is the key, unless for me! =D
And don’t procrastinate.

Leo Says:

October 9th, 2007, 19:30 pm

Great comments, guys!

@Amol: I always hear people give that simplistic advice when it comes to losing weight or getting out of debt, but the truth is it’s not that simple. It’s easy to say spend less, but many people just have a really hard time doing that. And so, the simplistic advice isn’t very helpful to them — they already know they should spend less, but they’ve developed bad spending habits over time.

Same thing with dieting: it’s not easy to eat less, or eat healthier. It takes a drastic overhaul of your eating and exercise habits. It can be done, but it takes work, and it takes more steps than telling someone to eat less.

GreatManagement Says:

October 10th, 2007, 3:25 am

Great post - ideas, which are so tangible - thanks.

My weight goes up and down regularly and I can confirm counting calories is the only way, which works for me. It’s simple, it’s easy and there are a number of websites where you can track your eating habits/calories.
I also think ‘rewards’ can be food related - just make sure they are not too often. Just once a week. A choc biscuit or a Latte.

Re: debt. I always ensure I regularly review my essential outgoings like car insurance, house insurance… I come across so many people who don’t spend an hour just checking they have the best policy for the right price. Instead of getting a pay rise from work, give yourself a pay rise by cutting down the cost of your regular outgoings. Do you really need that monthly magazine? That wine club membership - get rid of that debt first.

Andrew

helix Says:

October 10th, 2007, 4:56 am

I liked the article and the comparison between good financial and good dieting habits.
I’d like to emphasize an additional point, important in all areas of life: Choose your friends wisely.

Company is stronger than will. If your friends have unhealthy financial or dieting habits, you’ll likely pick them up or experience strain in resisting them. Moreover, you’ll feel like you are sabotaging the friendship if you “don’t go along” - which only adds more stress for you. A stress that you’ll have to remedy somehow, mind you.

So, sometimes, one just has to let go of some friendships in the interest in preserving one’s health, welfare and sanity.

PJLime Says:

October 10th, 2007, 7:37 am

“Watch less TV. TV makes you spend. You can probably figure out why.”

I don’t understand this statement. There might be a correlation between television viewing and spending for some segment of the population. But television does not MAKE you spend money.

Please try to make sense when attempting to give advice.

t Says:

October 10th, 2007, 12:41 pm

@ PJLime: ha! Well, he did just say “probably” - I guess that implies that there would likely be a few out there who can’t figure it out. Also, in an email complaining about whether someone’s advice has real meaningful content to it you include the line “Please try to make sense when attempting to give advice”?

PJLime Says:

October 11th, 2007, 0:52 am

Dear t,
I don’t understand you, either.

Jess Robinson Says:

October 11th, 2007, 2:49 am

http://www.codinghorror.com/blog/archives/000970.html - seems everyones on the same ideas.. ;)

practica Says:

October 11th, 2007, 17:46 pm

I’ve adopted recently simple but powerful technique, Very simple. When hungry i drink water. A lots of water. Our body is mostly made of water - that is why it is good to drink a lot. Not coffee, not juice - water. I stopped eating too much and lost 4 kilograms in 3 weeks. I am happy and feel great. Simple technique – real results.

Warren Says:

October 11th, 2007, 19:09 pm

What a great comparison! I Am trying to accomplished these goals as well and what is interesting is how they intertwine like how watching tv is unhealthy for you and your check book.

Also Eating more and eating out (which causes me to overeat) burn my pockets and add to my belly.

Leo Says:

October 11th, 2007, 22:14 pm

@PJLime: You might be right … TV doesn’t *make* you spend more money. However, I would say that there is likely to be a high correlation between TV viewing and consumer spending.

Is it a direct cause-effect relationship? That’s debatable, I suppose, but consider this: corporations spend *billions* on advertising, especially TV advertising … to make you spend your money on their products. And it works, obviously. If it didn’t work, they’d stop wasting their money.

Now, you could argue that some people are better at skipping the ads, or thinking for themselves, rather than just mindlessly buying stuff that TV ads (and programs) tell them to buy. And there’s a valid argument there. But I think that the pervasiveness of TV ad influences is greater than most of us think. Even if you don’t rush out and buy a product after seeing it on TV, you are at least more aware of it. And that has a subconscious message on your brain.

If you don’t have a spending problem, you don’t need this article in the first place. But if you do, I would suggest watching less TV (or none at all) to see if that helps. I would bet that it does.

Jamey Stanworth Says:

October 15th, 2007, 14:21 pm

There are a lot of great resources to help us get out of debt fast. Thanks.

The Middle Manager - Build Muscle and Burn Fat Says:

November 13th, 2007, 10:18 am

Great post. I spend a lot of time working to find parallels from business and finance to weight loss, and was excited to read this post! I am glad that I am not the only one that can see parallels between the two worlds.