Life Happens! Mistakes Happen! But Can You Recover?

Updated: Feb 23, 2019

How has the first week of 2018 been going for you?

If your answer is anything like mine, it has gotten off to a great start and I am so ready to keep this ball rolling! If not, that's alright too! We're just going to take steps to turn things around!

So, I am on this blog today because I wanted to share a quick tidbit with you.

As I am working one-on-one with my clients, I like to survey them to find out if there is anything they would like to cover in their sessions that we haven't touched on yet. A response that I got back said she needed "strategies of staying on track and getting back on track when I fall off the wagon."

What she was talking about was her personal finances, not her business. You see, dream building isn't just about making a ton of money as an entrepreneur - it is also about using the money that you have well. How else are you supposed to turn the profits from your business into your dream home or that vacation you and the hubby have been talking about for 5 years?

So what do you do when you're working hard, making money in your business an then you mess up? You saw that sale at Macy's and shopped 'til you dropped? Or what about that moment when a series of irresistible social events popped up back to back and you just had to go to all of them? Or perhaps 5 of the 6 people living in your house came down with some combination of flu, strep throat and/or tonsillitis with multiple doctors visits and various medications (or maybe that was just MY December).

Sometimes we're going to make a financial misstep or life is just going to happen. That is an irrefutable financial fact, but just because we messed up or got beat up doesn't mean we need to give up on that dream life! This is where a strategy comes into play!

We'll call this my Busted Budget Recovery Plan!

  1. Take a breath and don't beat yourself up. When life just happens, this is easy. It's life! It's not something you can always control, so you just accept that fact and move on. But when you mess up, it's harder. Here is the thing, you already know you made a mistake. You're staring at those shopping bags with regret or thinking about how much money you must have spent on those outing is nauseating now. You already know it wasn't the best choice, so what's the point in making yourself feel worse by beating yourself up? Instead of staying mad at yourself, it's time to breath and start focusing on solutions.

  2. Figure out the damage (i.e. how much you overspent). Identify the budget category (or categories) impacted and start adding up all of your expenses in those categories for the month. You'll then compare that total to the budgeted amount for the category to see how much you overspent (or how little you have left for the rest of the month). No, looking at the bank account or receipts is not going to be fun, but we need to know the damage so that we can make a quick plan to address it.

  3. Adjust the budget to accommodate what happened. When we overspend in one area, we may be able to salvage the overall budget by making adjustments in other areas. Do we eat out less? Do we do our hair at home? Does the family night out turn into a family night in with rented movies and popcorn? Sometimes we can reduce other expenses to accommodate life or a financial misstep. And if you can't, then just be aware that your budget for the next month will be impacted and plan accordingly (grab some more hours a work, reduce next month's eating out budget, etc.)

  4. Keep going. When we make a mistake or life steals our wallet, it's easy to give up on the budget and just try again next month. The problem with that plan is oftentimes we make it worse by no longer paying attention to our spending, which results in overspending in other areas too. Do your best to minimize the damage by sticking to your other budget categories for the month.

Sound do-able? Of course it does, because it IS! You are a super smart person and you're perfectly capable of using that tool called money to create the life you want. You just have to be unafraid of those inevitable moments when you'll make a money mistake or you get caught in the whirlwind of life. It happens to all of us, even ME (because those doctors visits and medications hammered my December budget)!

The key is recovering!

So take this Busted Budget Recovery Plan, print it out and keep it close so that you can refer back to it when you have your own busted budget moments!

I hope this helps! Talk to you soon!

Tiana B. Clewis

Ready to become a #dreambuilder in your money, your life and your business?

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