What Gives When The Budget Breaks?

This post was originally published on December 16, 2008. ~Nicki

photo credit: jekert gwapo

Establishing a budget is one of the best things you can do for your finances, your family and your future. A budget allows you to tell your money where to go, instead of your money telling you where it’s going. Regardless of your financial situation you are robbing your money of its potential if you don’t have a plan for it.

I’m not going to tell you how to set up your budget. I’ll have my husband guest post on that some other time. What I want to talk about today is what you do when you blow the budget. This is a problem for some people more than others. For some, the extra expenses are easily covered and with a shrug of your shoulders your month moves along. However, if you are reading this blog then chances are a little better that a blown budget is a mini crisis for you.

Here are some things to keep in mind when the budget breaks.

1.) This is a fantastic reason to establish an Emergency Fund. If you don’t have one then start one. I know … you don’t have any extra money to save, right? Well, that means you especially don’t have any extra money for a crisis, which you usually NEED money for. Just do it. Just start. You’ll thank yourself later.

2.) This is not the time to panic. Panic has never solved a problem since its beginning when Eve first noticed she was naked. Anxiety will cloud your thoughts. Give yourself a chance to succeed and leave the anxiety and panic out of it. Breathe and think.

3.) Get creative. Whether your crisis is no fault of your own (furnace died) or it is a result of your stupidity (emotional shopping were you?) you’re going to have to be creative to get out of it. Invest your anxious energy into thinking up a creative solution. Here are some of mine:

• Cook really cheap for a week or two. Be optimistic and make it fun. How cheap can we possibly be this week? Think pancakes, eggs & toast, rice and beans, baked mac & cheese … believe me, it’s doable.
• Make some money immediately. If it’s winter, walk around with a shovel and see if you can shovel someone’s walkway or driveway. Offer babysitting skills or sign up for a babysitting service. Sell something on ebay. Whatever resources you have to drum up some quick cash … do it.
• Cut all extras for a few weeks. This seems obvious right? I’m not just talking about your manicure. I’m talking about extra trips out of town or needless driving around. No coffee shop stops and daily newspaper purchases. Sounds tough right? Well, then … start that emergency fund and you won’t have to be so radical about it next time.

4.) Remember it’s only temporary. Your little crisis will be just that a month from now; a little crisis.

5.) Move on. This doesn’t have to be your “normal.” You don’t have to live from one financial crisis to the next. Make a plan and get out. I’m in one of those plans right now and it gives me hope for the future. A little hope can go a long way.

I’d love to hear from you on this one. What helps you in a financial crisis? When bad things happen what spurs you out of it?

Why I do what I do ~ Lately I’ve been noticing that Chloe is constantly oraganizing things. She lines up her doll and animals. Sets all her play food in a neat little row, and now she’s been asking for a separate utensil for each food at meal times. I think I may be rubbing off on her. Hmmm …

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Tagged as: Budget, Money Trouble