When to switch from weight loss (fat) to weight gain (muslce)

Hi, first post, so bear with me...

About 6 months, I embarked on weights and diet program to shift a very stubborn beer gut. For the last couple of years, I've been pretty active and gone to the gym 3 or so times a week, but the fat around the belly had largely refused to budge. I came to the conclusion I wasn't creating a proper calorie deficit, was drinking too much around the edges (albeit massively down on what I was drinking a few years ago - the reason of the beer belly!), and was doing the wrong kind of exercise - too much cardio (particularly high intensity running), and not enough weights (particularly strength sessions).

Some stats: Around mid April, before I started my new program, I was around 170llbs, with height just under 5.11 and a circumference around the fattest part of my belly of 34.50 inches - could pinch a good couple of inches of fat easily.

Now, coming up to 2 months later, I've lost around 10lbs, and just over 2 inches around my waist, which is exactly what I wanted to acheive. Overall I'm definitely leaner, but there's still more fat around my stomach I'd like to lose, although it's a lot less obvious now, but certainly not flat. By focusing on weights this time round (3 times a week) as a weight loss method, and limiting cardio to walking (60mins every day) and slow (60%HR) sessions on a bike (2-3 times a week), combined with a healthy calorie deficit diet, hopefully the weight loss has been predominatly from fat, rather than when I've crashed on cardio in a previous attempt to shift the beer gut, and also lost a lot of lean muscle tissue. Based on some calorie counting software, which includes an estimate of your BMR, it has shown the average calorie deficit over last 2 months to be around 300 calories per day.

Question now is when should I shift to *gaining weight* to build bigger muscles - should I carry on in this way (another month?), until I've shifted the last bit of fat I want to around my waist, and then go for weight gain, or start to slowly reverse the calorie deficit now, before I lose too much weight - always concerned with any weight loss, that some will inevitably be lean muscle tissue, particularly having lost so much, relatively. Losing *fat* is good, but I do want to build muscles too.

Furthermore, having spent 2 months in calorie defitcit for the most part, how can I be sure that, if I reverse that deficit (aim for extra 500 calories a day?), then the extra weight will be muscle gain, and not stored fat in areas I don't want.

Any comments gratefully received!
Cheers
 
I'll keep this short: There's no reason why you can't lose fat weight and gain muscle weight at once. You just might not see any overall weight difference since much of the fat could just be replaced by muscle.

And if you keep your diet right, then you shouldn't have to worry about the calorie difference. As long as the extra calories come mostly from protein with some complex carbs and unsaturated fats.
 
Thanks for a straightforward answer! What probably convinced me that it was one or the other, not both, was previous attempts to get in shape have resulted in muscle gain and toning, but fat around my waist being largely unchanged, although with hindsight, I can now see that my diet wasn't as good as it could have been. Challenge now is finding the extra calories in an appropriate form - last 2 months, I've got used to forcing a deficit (either through exercise or diet or both), and consequently eating smaller meals! Maybe I should cut out the hour walks everyday to/from work, but always thought they were a good form of fat burning. Cheers!
 
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