Getting Back on Budget After Overspending | Cleveland Bradley County Teachers Federal Credit Union

Holidays, birthdays, anniversaries or even just a random Wednesday: overspending for any reason is so easy to do. Making a grand display with gifts, taking the trip of a lifetime or going out for a great big meal are all things that we love to do throughout the year.

If you have blown your budget recently, there are plenty of ways to get back on track without feeling too much of a long term pinch.

Breaking the Habit

While most of us overspend for a specific season, it can also become a habit that slowly works its way into our day-to-day lives. You go in for a few things and walk away with a cart full of unplanned purchases. (Hello, Target!)

Fortunately, you can take steps to curb your unnecessary expenses and create better financial habits that will keep your wallet more than happy.

As it is with most bad habits, the first step in creating better routines is admitting where your expenses have gone off-track. Are you grabbing snacks during a marathon shopping day? Overstocking on grocery items? Or is your regular spending in check but your gift giving expenses through the roof?

Identifying spending you regularly partake in that isn’t included in your budget is the best way to adjust both your mindset and your spending. Once you have identified your problem areas, you can create a plan both for the short- and long-term in order to break the overspending habit for good.

Recovering From a Spending Binge

Even if you already have solid spending habits, seasonal shopping can throw your budget for a loop. Whatever the reason for your spending binge, once the experience is over, it can leave you feeling empty or overwhelmed. Just like it is possible to break regular overspending habits, you can also recover well after splurging.

First of all, cut yourself some slack. When you overspend on something intentional, keep your focus on the purpose of the expense rather than the total cost. If you set a budget and went over it, set a better budget and allow yourself more spending room the next time the same (or a similar) event nears.

While you are recovering from a large expense, make payments above the minimum due as you are able. Tackle the damage slowly but steadily while you review why you overspent in the first place.

Did you blow your vacation budget on souvenirs? Buy the kids extra presents at the holidays? Decide if this spending was worthwhile, and make changes to either incorporate these expenses the next time or eliminate them altogether.

Budgets are always going to be consistently shifting and should remain a fluid and flexible part of our lives. No matter how far off-track you feel, there is always a way to get back to a more comfortable position. Allow yourself time to get there, and you will find yourself better prepared the next time the spending itch arises.

Need some help keeping your budget exactly where you want it? Contact us today!