Unfortunately, busted budgets are an inevitable fact of life. If you have a house, kids, a car, or do anything other than sit in your house all day, you’re exposed to risks and repairs – and some of those things can cost money.
But that doesn’t mean you should admit defeat and stop trying. Busted budget aside, you can still be a budget hero the other 90 per cent of the time. Here’s how:
Open targeted savings accounts
If you want to prepare for various types of emergencies, it might be smart to open targeted savings accounts and start tucking money away. For example, you could start one for any event that happens fairly often – things like home repairs, car repairs, school supplies, or medical bills.
Opening separate accounts for all of these expenses might be the best way to start preparing for each of them – even if you can only stash away small amounts of money at first.
Build your basic emergency fund
Another tool that can help you weather any financial storm is an adequately funded emergency fund. Most experts suggest you keep at least three to six months of expenses in an account you can get to easily, but you may need more or less depending on your situation.
If you want to start building your emergency fund but don’t know where to start, start small. Even ₦500 per month can add up quickly if you contribute regularly. Just make sure not to touch it unless you have a true emergency.
Analyse your monthly budget
If you keep going over budget for reasons other than an emergency, it might be wise to re-evaluate your budget altogether.
Remember, a budget is meant to keep you on track, but you shouldn’t set yourself up for failure. Sometimes you might just need a little more wiggle room to make it work.
Look for ways to cut back
If you’ve overspent on home repairs or other emergencies recently, you might want to look for ways to cut back so you can recoup those funds over time.
For starters, look for the low-hanging fruit. Things like your grocery spending, cable TV bill, and entertainment spending are generally easy to curb. And you never know – you might actually enjoy your life more without all of the “extra” expenses.
Try to earn some extra cash
Cutting back is great, but there’s another way to create the same effect – earning more money. If you want to find a way to recover from that $1,000 hospital bill or furnace repair bill, you could always look for ways to earn the money you lost.
Maybe you could start a side hustle in your spare time, or perhaps you could build a full-fledged side business out of your own home. Either way, there are endless ways to make some extra cash. Mowing lawns, babysitting, and tutoring are great ways to get started making extra money, just to name a few.
Recovering from busted budget with style
Let’s face it – busted budgets are part of life. In fact, the only people who never experience a busted budget are the ones who have no idea where their money is going in the first place. Trust me, you don’t want to be that guy.
Yep, the fact that you even know your budget is messed up means you’re already ahead of the game. So don’t let a crazy month or two ruin your finances completely. Just get back on the wagon and keep trying – no matter what.
Have you ever had a busted budget? What kind of surprise bills have you endured lately?
The Sun News Online
