Do you suffer from Financial Bulimia? I think it’s an interesting definition for a way some people spend money. I’d never heard it before, but I came across it at So Now What?:
Financial Bulimia. I have a tendency to get ultra frugal, and then snap and do something like book a last minute weekend getaway–to the tune of $3,000! I would like to get on a more even, moderate keel.
I think that the term fits quite accurately to a lot of people trying to get their finances in order. It also rings true since dieting and personal finances / debt reduction have a lot of similarities. Just like with dieting, there is no quick fix with debt reduction. It takes time and ultimately a change in habit over time. If you try to cut spending down too drastically too fast without the time to think through the cost cutting you’re doing and whether it is healthy (there is a difference between eating the cheapest foods that are unhealthy and a low cost diet that is nutritious), many times it will result in a spending spree that ruins all the hard work you’ve done.
This is why it is so important to work on the budget and debt reduction using as many painless saving ideas as possible to begin the debt reduction process. It also is quite important to do it slowly but surely over a period of time when possible as this will likely result in a long term change of personal finance habits for the betterment of your bottom line.