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Step 1
RECOGNIZE IT FOR WHAT IT IS
The first part of avoiding the feast and famine cycle is recognizing and acknowledging a feast for what it is, it's a feast. It is not normal and should not be treated as such. Do not spend frivolously during a feast because money seems to be flowing like water, recognize that it is much like flash flood - there may be a lot right now, but it won't last long. -
Step 2
STOCK UP DURING A FEAST
A financial feast is a perfect opportunity to put away money in preparation for a famine. Take a percentage of your income and put it in a savings account or certificate of deposit. This will ensure your money is earning interest and is not easily accessible. -
Step 3
AVOID BIG SPENDING
Coming into a lot of money all at once, or getting a ton of overtime for work may tempt you into buying the biggest flat-screen TV you can find or buying a new car, but try to restrain yourself. Recognize the feast as a such and instead invest in a savings account or purchase something that you have been needing. -
Step 4
RELY ON SAVINGS AND FOOD STORAGE DURING A FAMINE
If you adequately prepare for a famine, or financial downturn, you will be able to weather the storm successfully. Use savings to pay your bills and expenses while you are experiencing difficulty. If you've acquired some food storage during your financial feast, you will be able to eat good nutritious food without spending much need funds at the grocery store. -
Step 5
BE CONSISTENT
Whether you are feasting or starving financially, it's important to remain consistent in your spending and saving. Plan to put away a percentage or portion of your earnings with every paycheck and don't skimp when you are experiencing times of plenty.
