A few adjustments and some extra discipline can go a long way toward getting back on the right path.
Whether because of an unexpected expense or a few too many impulse buys, even the most buttoned-up budget will inevitably take a hit.
When this happens, it’s normal to feel like you’ve lost momentum—especially if you’ve been diligent about budgeting for a long time. But don’t be too hard on yourself. With a little effort, you can get back on track toward your goals.
Here are six ways to bounce back from a budget breakdown:
When spending goes off the rails, it’s easy to feel like the situation is beyond your control. But the reality is that you’re still very much in the driver’s seat—you just need to make some prudent choices.
As a baseline, you can commit to postponing spending on ”wants“ until you’ve made the minimum monthly payments on your bills—including credit card bills. This can help you keep potentially high-interest balances in check from month to month and save you the stress of late fees.
You can also take a hard look at your discretionary spending and make manageable tweaks—even if they’re temporary. If you eat out a lot, try making all your meals at home for a week and analyze the cost savings. If it’s significant, try repeating the process until you feel more in control of your budget. If there’s a streaming service or subscription box that you know you could live without, consider cutting it out for a month or two (you can always sign up again later!). These small adjustments have the potential to add up to big changes in your credit card balances and give you confidence in your ability to steer your budget back in the right direction.
Digging for deals may take some effort, but don’t underestimate the power of a coupon or discount code to help you save significantly on things you’re already buying. Coupon blogs and promo code websites are great places to search for savings, and many also offer strategies to maximize the amount you save. Turn up the fun factor by getting your friends into it, too—you can compete and compare savings totals, and swap tips and tricks you’ve picked up along the way.
Automation can be a budgeter’s best friend. If you’re signed up for direct deposit at your job, consider funneling some of your earnings into a savings account. You may not feel the impact in your paycheck as much if this rerouting is done automatically. Call it your “Making It Back Fund,” and check on your balance often. When you see it inching upwards, you’ll know you’re making progress.
Speaking of automation, there are plenty of apps that will allow you to set up personalized alerts when your spending has exceeded a particular limit (or is about to), giving you a reality check in real time for when it’s time to rein things in.
Have a passion for crafting? Do your ideas or hobbies often prompt people to ask, “Have you ever thought of charging for that?” Then put your skills to work and start getting paid for them. Thanks to a number of online platforms, there is ample opportunity to earn extra cash on the side.
A big part of budgeting is estimating what you’ll be spending each month on the things you need and setting dollars aside for the things you want. While that’s important, it doesn’t necessarily take into account those months when life has other plans for you and your money. Padding your budget a bit is a good way to keep things realistic and make sure you’re prepared for unexpected expenses.
Living within a tight budget can lead to feelings of deprivation, which can take a toll on your mental well-being. To help avoid this—and reward yourself for being responsible—think of no- or low-cost ways to treat yourself. Practice yoga, watch a movie, cook a nice dinner, catch up with an old friend on the phone. There are countless activities that can boost your mood without boosting your bills. As a bonus, you may gain a greater appreciation for life’s small pleasures—and realize that living well doesn’t have to mean breaking the bank.
Don’t despair if you’ve let your budget slide. A few adjustments and some extra discipline can go a long way toward getting back on track.
This article has been prepared for informational purposes only. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be appropriate for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
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