We have all had a situation where we have blown our monthly budget and have no spending money left. We helplessly look at our back accounts regretting spending so much money and we’re only humans. We make mistakes and we get back up from them. So here are 3 ways to get your budget back on track after an accidental spending splurge.
Deal with the issue ASAP
Don’t be in denial about your situation; it’s time to face the facts. It is easier to acknowledge the issue and fix it than to ignore it and go through the same situation over and over again. It is natural to feel guilty about splurging but do not dwell on it. What is done is done.
Victor Kiam said, “Even if you fall on your face, you’re still moving forward”.
Your plans are never going to go exactly as expected but keep moving forward. Our failures are successes if we learn from them and move forward. So the sooner you acknowledge that you have over spent, the quicker you can recover from the splurge.
Create a plan
“If you fail to plan, you plan to fail.”
Nothing is easy to bounce back from, whether it’s losing weight or starting a new job, everything takes time and requires a plan. Making a plan will help you prevent and contain your next splurge. A great way to plan would be to cut off expenses you don’t need, or give them a complete makeover. This could be anything from eating out less, walking more instead of taking public transport or driving less to save on the cost of petrol. Everyone’s budget will vary, just remove what you think is an unnecessary expense. Don’t be extreme and deprive yourself from having the occasional treat but be reasonable. The more you cut off, the more money you can set aside for other necessary expenses. For example, for the month of June you could stop your gym subscription if it’s not currently being used and do online work outs until you reactivate your account. The list of expenses you can cut is endless. Do what you think is necessary on a temporary basis to help you get back on budget.
Create a splurge fund
We have all heard the saying “prevention is better than cure.” This applies to splurging as well. It is better to prevent spending an excessive amount of money than it is to have to go through the pain of trying to recover your savings. This goes back to the previous point about planning. If you plan, you can prevent. Set aside a splurge fund for just your treats and entertainment expenses. Splurge funds and emergency funds are very different. A splurge fund is not an emergency. A splurge fund is just some money you put aside for extra spending whereas an emergency fund is for unexpected expenses like fixing a car issue or paying for an unexpected bill. It allows you to put aside money just to spend on yourself like nights out or go to a nice restaurant. Having this fund can help you adjust to spending a certain amount each month for unplanned splurges. It may help you fix the problem of over spending so set up a separate account and see how you get on.
This post was written by Linsey.