How to Recover After Blowing Through Your Budget
The good news is that you have a budget that you have blown, as many Americans don't even have a budget that they follow, which leads them down a hole of debt that they can't get out of. You on the other hand simply blew your budget. Fortunately, you can get back on track to keeping well within your budget when this happens.
Assess How Bad the Situation
The first step to recovering from a blown budget is to assess how badly you blew it. This is crucial as your budget could actually be much better or worse than what you thought. Because of this it is important to ensure that you properly and quickly assess the damage done. There is a big difference between blowing your budget by 5% and 50%. Once you've assessed how badly you blew your budget you can decide on the course of action to take and the mindset that you need in order to handle it.
Figure Out Why it Happened
It's important to know what exactly caused you to fall of your budget wagon. Was it an expense that you couldn't avoid such as a medical bill? Or was it a response to a stressful event? By knowing what caused you to blow your budget you can ensure it does not happen again in your future. If it is an unavoidable expense then you can work to ensure that you have a plan in order to deal with it if it happens again.
Plan for Action
Figure out exactly what you can do in the next week in order to work towards recovering your finances. If you made an unnecessary purchase can you return it? Can you somehow make up the money you lost? Do you need to be extremely strict with budgeting in the following month in order to recover the money you lost? Knowing the answer to these questions will help you get back on track.
Long Term Action Plan
Once you figure out a short-term plan for fixing your budget, you will need to think about a long-term action plan in order to get back on track. This plan should ensure that this type of budget crisis does not occur again and/or fix the mistake that might take more than a week to fully recover from. For example, cutting up your credit cards and only using cash can be a good way to avoid excessive spending.
Get Someone to Help You
Although this may not necessarily be required, it could help to reach out to a friend or relative that you trust in order to help you get back on track with your budget. This person can help to keep you accountable for how much you're spending.
Don't be too Hard on Yourself
Whenever you are working toward a goal, it is important to understand that setbacks and mistakes are normal and they happen. You should not be too hard on yourself when you blow your budget as this is just a part of life. Make sure that you keep a positive attitude when it comes to your finances even if you mess up.
Don't Give Up
Remember that what determines a failure from a success is how you handle a setback in your budget. If you blew your budget then you must not give up on budgeting entirely, but pick yourself back up and immediately try to recover your finances. Chances are getting back on track is easier than it sounds, and once you get the right mindset you can overcome almost any obstacle.