The most important part is to cut back on sugars and starches (carbs).
These are the foods that stimulate secretion of insulin the most. insulin is the main fat storage hormone in the body.
Another benefit of lowering insulin is that your kidneys shed excess sodium and water out of your body, which reduces bloat and unnecessary water weight.
in the first week of eating this way, both body fat and water weight.
This is a graph from a study comparing low-carb and low-fat diets in overweight/obese women