A budget is a great tool to track and manage your income and expenses. If you have been regularly using and implementing a budget to manage your money you should be well on your way to or already have your finances under control. However, that doesn’t mean that even the most financially responsible person or family doesn’t have financial challenges that will pop up at times.
“It happens.” “What happens?” Sh*t happens and things pop up that you may not have not planned for or even ever thought about. Household appliances may break and need repair or replacing. Fender benders happen and the insurance deductible needs to be paid. If being sick for a few days from work your sick pay is usually less than what your actual salary may be. Anything unexpected can happen that may have a direct and negative consequence for your wallet and therefore for your budget.
Steady As She Goes
Having your budget being blown out due to an unexpected expense or due to some oversight on your part is a normal occurrence for just about all of us. Do not beat yourself up over it.
In order to get past the current detour in your financial road, you need to stay focused on your budget and maintain your financial course because unfortunately, once your household budget has been blown, it can become far too easy for additional failings to occur.
After putting in the time and effort to manage your money, it is a steep and slippery slope of discouragement and despair if you do not grab the financial reigns and take back as much control as you can. It’s like missing out on a workout one day. Many of us will think, “Heck, I’ve already missed one day, I’ll go tomorrow.” And what happens? Tomorrow never comes.
Grab The Wheel And Take Control
You need to know that when things occasionally go off course, and you also need to know that it is inevitable that from time to time things will go off course – it is not a matter of if things will go off course, but when – the trick is to grab hold of the wheel as soon as possible and right your financial course just as quickly as you possibly can. Your success in life depends on maintaining your financial course regardless of what may happen.
These Four Budget Fixes Will Help You Get Back On Track:
1. Ensure Your Budget Is Reasonable.
Budgets require knowing where money is being spent, as well as how much you are spending. When first making a budget, it’s easy to incorrectly estimate how much you actually spend on different items. Your estimates and reality often collide.
- Until you have some real data to use, build a buffer into your budget to protect against overspending. When you overspend in one area, you can use money from the buffer category to offset the difference. Try for a 10-20 percent budget overage buffer, at least for the first while.
- Over time, your estimations will improve and the buffer category can be phased out. You might decide to keep it in your budget permanently, but lower the amount held for the buffer.
2. Use Funds From The More Flexible Budget Categories To Correct Spending Mistakes.
Some categories are much more flexible than others. Your rent or mortgage payment aren’t very flexible. But things like clothing are flexible. You can purchase a $20 pair of pants or a $300 pair of pants. That’s flexibility. Eating out is similar. Stop eating out.
- It’s quite easy to cut back in these areas in the event that another category has been overspent. Eat in instead of going out. Rent a movie instead of going to a concert.
3. Avoid Waiting To Ask For Help.
When we get behind on their bills, many of us may panic. Sometimes the solution is as simple as asking your creditors for a little extra time. Many are far more accommodating than you might think. Creditors know that if they’re willing to work with you, you’re more likely to be able to pay them.
Speaking with them early on should make it easier for them to make adjustments for you before things get to far out of hand.
- Avoid Jumping On Quick Fix But Costly Solutions. Payday loans and credit card advances can be difficult debts to eliminate. These types of solutions often result in additional rounds of similar solutions. The amount of debt you owe seems to keep increasing all the while.
- Negotiate with your landlord and even your utilities to see if an alternate payment arrangement can be reached. Never assume you know the answer before speaking with them.
- Be sure to get back on track as soon as possible. Delaying payments just means piling on the debt.
4. Adjust Your Budget As Needed.
If you’re consistently coming up short, your budget likely needs to be adjusted. It might be that your income simply doesn’t permit the targets you’ve set in the more discretionary categories, such as entertainment.
- If you’re still struggling, keep track of every cent that you spend for a month. This includes the spending of loose change. Track everything. Then ask yourself how this compares with the budget you’ve set. Where are you making an error?
- You should be reviewing your budget at least once a month in all circumstances – Even if you have your finances under control. By the way, if you do have control over your money then it is probably time to find ways to cut back on your spending and save more of your money.
Conclusion
Living within a budget is a necessary part of being financially responsible. Being financially responsible is a necessary aspect of a mans life. Single or with a family, every man needs to take care if his money. Success in life depends on it. But, sh*t does happen and everyone overspends from time to time. When your budget is blown, be proactive and take responsibility to correct the situation.
The streets are filled with homeless people that made bad financial decisions or did not make proper corrections when the sh*t did hit the fan. Do not become one of them.
The first step as a solution is to make the necessary adjustments by shifting the allocation from one category to another. Then, if needed and early on in the budget crisis, be in contact with and work out a resolution with your creditors.. If you’re still having challenges, then your budget probably needs an overhaul.
Get your budget under control, get back on track and continue on with reaping the rewards of your fiscal responsibility!
BAM! Be A Man. Do The Right Thing. Take Care Of Yourself And Your Money
BAM! Be A Man. Do The Right Thing.
Be The DtRTy Guy!
