How to budget: Author shares what ‘financial fasting’ is and how it can help you can save thousands

A personal finance author shared a three-step tactic to help you save money every month.

Frances Cook, from New Zealand, explained the concept of “financial fasting,” which involves living frugally for one week a month.

‘If you have trouble saving money, it is sometimes better to do it in short sprints. So maybe financial fasting is for you!’ Frances wrote on Instagram.

The method is intended to teach people how to budget and avoid wasting their income on unnecessary expenses.

The method aims to help people learn how to budget and avoid wasting their income on unnecessary spending

Start by calculating the ‘absolute minimum’ you can live on for a week – including a ‘very basic’ grocery, bills, rent or mortgage payments, and all other necessary expenses.

Then block any money for a week before your ‘financial fast’.

‘Live on that bare minimum, try not to spend anything extra that week. Keep social plans to a minimum,” Frances said.

Make sure that the money saved is put into an online savings account and do not touch it.

“Go back to your normal life for the rest of the month, knowing you’ve done something good for yourself,” Frances said.

Some prefer to implement this money quickly the last week before it is paid or the first week after it is paid.

After sharing the money method on Instagram, many seemed eager to try it, while others claim they’ve been doing it “for years” because “it works.”

Omg this is so clever!!!! Be sure to try this!’ one person wrote, another said, ‘I like this idea of ​​a challenge. Difficult! But anything is possible.’

“We call this a week with no expenses, no extra expenses apart from fixed expenses like bills/food etc. It’s a game changer,” added a third.

Previously, Frances talked about how you can save faster for a 20 percent home deposit and why investing in the stock market is better than putting money in a savings account.

Right now it can seem daunting or impossible for first time homebuyers to enter the real estate market, but the best thing Frances recommends is to “don’t panic” and think deeply about your financial goals.

“Depending on your purpose in life, buying a home may actually hold you back,” she previously told FEMAIL, adding: “It may seem impossible to put down a $100,000 home deposit and could lead to that some people give up.’

Those looking to buy or rent a home in an area closer to a major city may want to consider investing in stocks – an avenue Frances deems “doable” and an option that works “for all stages of life.”

“You can use stock to build a level of financial independence that allows you to rent safely forever, or you can use it to help you build a down payment,” she said.

Previously, Frances talked about how you can save faster for a 20 percent home deposit and why investing in the stock market is better than putting money in a savings account

“Instead of frantically putting your money in a savings account and watching house prices rise as you struggle to keep up, you can put it into stocks instead,” Frances said.

“Stocks have appreciated even more than houses in the last ten years, so it can help you keep up.”

Unlike real estate which requires a large lump sum down payment, investing in stocks and shares gives the individual the freedom to choose the amount for themselves.

Frances said that online investment platforms, such as Raiz, FirstStep and Spaceship, allow users to start for as little as $5, which is perfect for beginners.

‘The only trick is a long-term strategy; stocks can go up and down a lot in ten years, even if you eventually get out,” she said.

While some may view investing in stocks as a “risky” option, Frances said there could be more benefits than investing in real estate or choosing not to invest at all.

“Choosing between ownership and stock is a bit like choosing between chocolate and vanilla — different people prefer different things for different purposes,” she said.

“The big problem is that a lot of people can’t get chocolate right now, because saving at least $100,000 is a huge goal.

“In the meantime, if you can invest $5 in stocks, you can figure out how you want to invest and have less at stake if something goes wrong.”