If your credit card is begging for the sharp end of the scissors to put it out of its misery, or you’re keen to start some serious saving, it could be time to go on a spending diet.

Financial personal trainer Alice LeMessurier, aka The Investment Stylist (www.theinvestmentstylist.com.au), can help whip you into shape with her four-step financial detox.

Step 1: Financial check-up

Start with a financial examination: look at your assets, income, expenses, and liabilities such as loans. If your assets are worth more than your liabilities and your income is higher than your expenses, then you’re in the clear. “But if you have loans, owe money on your credit card and you’re spending more than you’re earning, you need a financial cleanse,” says Alice.

Step 2: Cost cleanse

The best way to beat credit card debt is head-on. Start to monitor your spending by recording monthly expenses. Cut down on impulse buying and cancel any unnecessary costs.

Avoid exorbitant interest rates on your credit card and reduce your credit limit to an amount you can afford to pay off monthly. You’ll be amazed at the difference these changes can make. “If drastic action is needed, cut that credit card in half,” says Alice. “It’s the financial equivalent of purging your cupboards of chocolate!”

Step 3: Budget massage

You need to know where your cash is going. Divide your income to conquer your mortgage, rent, groceries, entertainment and fuel, so you can account for all of your spending. If you set a monthly budget, review it weekly so you don’t put off saving until the next month.

Step 4: Exercise your money

“Much like any physical exercise program, you’re far more likely to succeed in your financial goals if you have a clear idea of the outcome you want to achieve – be it income, growth or protection of your finances,” says Alice.

Be honest and separate your needs from your wants. Once you’ve identified long-term necessary costs such as retirement and school fees, focus on short-term aims like holidays and start saving for them.

Considering investing? Defining your ‘risk tolerance’ is integral to any investment strategy. Remember the basic rule: the higher the risk, the higher the return (and the higher the chance of loss).