So You Failed in Your Monthly Budget, Now What?

Sarah Brumley

Sarah Brumley

So, you failed in your monthly budget. It’s a terrible feeling and yet it happens to us all at one point in time or another. The key is to move forward. Today we’re talking about four steps to take so that you can press on passed that failed budget and confidently make progress toward your financial goals – whatever they might be. Sound like something you need? Well then, let’s get started!

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Here’s the deal: in order to achieve your long-term financial goals, you have to have a budget that works for you and your family. That means, getting super clear on your income, expenses, and total debt payoff amounts, so you can make any necessary changes and begin to see progress. That’s exactly what the Financial Fix Up Planner is designed to help you do. With step-by-step instructions to set up your budget, monthly challenges to keep you on your toes, menu planning resources, and space to reflect on your goals, you’ll have everything you need to pursue your dream of financial freedom. Sound like something you need? You can grab your copy today at lemonblessings.com/planner and because you are a podcast listener, you can get it for 20% off by using code SUMMER24. Once again that’s lemonblessings.com/planner and use code SUMMER24 for 20% off your copy of the Financial Fix Up Planner.

So You Failed in Your Monthly Budget, Now What?

Well hey there and welcome to another episode of the Financial Fix Up Podcast. I’m your host, Sarah Brumley. If you’re listening in real time, we’ve found ourselves nearing the end of July and it’s easy to see some of those goals that we made back in January fall to the wayside as we push through summer. Even those of us that are still working hard at our goals, might be finding right now that it’s a struggle to stick to what we know is right with all of the temptations around us.

Or maybe it’s just me?

Based on conversations I’ve had recently, though, I don’t think so. My guess is that if I got the opportunity to sit down with you right now you’d say that this last month has been hard, especially related to whatever financial goal you are working toward.

Not to worry.

Today I’m going to spend some time talking about failure. In fact, I really just want us to sit in it because even if you haven’t dealt with that feeling of failure yet in the pursuit of your current goal, you will at some point in time and it’s important to know what to do and how to move forward in that situation.

So that’s where our focus is going to be today.

Step 1: Give Yourself Some Grace

And that starts by giving ourselves some grace.

Okay, you failed. You did! Own it.

You didn’t meet your savings amount for the month, pay off the right amount of debt, overspent on your grocery budget, or just simply didn’t meal plan at all.

Or maybe, you missed a payment and ended up with a late fee, or overdrafted your bank account.

It doesn’t feel good, right?

Trust me, I know.

When Justin and I were newly married, this was par for the course each and every month. After finding out that we’d overdrafted our account, I’d lie awake at night feeling guilty for not being better with our finances and feeling like I’d failed our family.

It was a terrible feeling, but one I knew well.

If you’ve failed in your budget and are feeling guilty – step 1 to making it better is giving yourself some grace.

Remember: it’s a learning process. Just like a toddler taking their first steps, you are also taking your first steps toward a better financial life for you and your family. It won’t happen perfectly, you’ll make mistakes along the way, but it’s what you do after those mistakes that really matters.

…and you can’t have a successful “after” until you’ve chosen to forgive yourself.

Step 2: Determine Why The Failed Budget Happened

Step two – after we’ve given ourselves grace and forgiveness – is to determine why your budget failed in the first place.

The “why” of it all is a critical part of ensuring success in the future.

  • Did you overspend your budget because a family member unexpectedly moved in with you?
  • Were you tempted to eat out because you were feeling sad, lonely, or tired of cooking?
  • Did a family member end up in the hospital and exceed the amount you had set aside for medical expenses?

It could be any number of things, but take the time to look back through your finances and determine what went wrong. Only when you’ve done that can you move forward and decide how you will prevent that from happening in the future. And we need to know that, too, right? So, how will you prevent the same budget failure in the future?

Maybe you need to add more money to your medical expense fund each month, set better guidelines with house guests, put together some pre-cooked meals so you don’t have to prepare dinner each night…or whatever else it might be.

Whatever you choose, make sure it’s something that will keep you from encountering this same issue again.. As Albert Einstein famously said, “Insanity is doing the same thing over and over again and expecting different results.”

Don’t be insane. Put a plan in place. Let’s get different results. Better results.

Step 4: Pick Up the Pieces

After you’ve forgiven yourself and determined why your budget failed, the next step is to pick up the pieces.

I know, I know. You want to let last month go to the wayside and just start fresh, but if you have lingering charges on your bank account, additional fees due for unpaid debts, or money added to a credit card, you need to figure out how you will take care of those issues.

Consider the ways you can do this. For example, if you overspent your grocery budget last month and had to put the additional expenses on credit cards, then you might need to figure out how to eat out of your pantry and refrigerator for a week or two to recoup that money. Sure, it might not feel ideal at the time, but by taking immediate action to fix the problem you’ll save yourself a lot of frustration in the long-term.

In the case of additional fees due to your bank or with a debt payment, it might be time to consider eliminating your spending money or some other non-essential for the following month in order to get back on track. In our case, I’d probably eliminate our eating out budget, take some money back from our spending allotments, or place a hold on any and all outings with friends.

Once again, it might not seem like fun at this moment but, like we tell our kids, every action results in a consequence. The sooner you get yours out of the way, the sooner you can begin moving toward your goal once again.

Step 4: Review Your Goals

The final step in this process is to take the time to review your goals again. Personally, I write mine down at the beginning of each month so that I can see them and the progress I’ve made to date. If you are really struggling to stay on point with your own goal, you might decide to write it down in a journal each and every day. That just keeps it front of mind so that when you make those monthly plans and daily decisions, you make them with your future in mind.

Keep in mind that, just because the journey gets hard, doesn’t mean the goal you’ve set is the wrong one. Consider the “why” you started out with and determine if it’s still valid. If it’s no longer resonating with you, then it might be time to reevaluate and put yourself on a different track toward success that matters to you.

Remember, the goals that you create, that knowledge of why it matters to you – that’s what will drive you to the financial freedom you crave, whatever that might look like for you. So, don’t skip this part!

Move Forward Confidently

You’ve put the pieces back in place and determined the goal you set is still the one for you, so it’s time now to move forward and do so confidently. This is where a lot of people fail, but you won’t be one of them. You won’t allow yourself to get stuck in the “I can’t do it” mentality, but rather, to know that you’ve learned from a simple failure and have been able to move past it.

  • Be confident.
  • Create action steps to get the momentum going again.
  • Plan ahead.
  • Be confident.

The truth of the matter is, if you really want that goal (which I know you do!), you’ll take this as a learning experience and push forward toward your goal with even more excitement than before.

And if you are still struggling to get that budget up and going, definitely grab a copy of the Financial Fix Up Planner. It’ll walk you through the goal setting process, help you determine what matters most, you’ll be able to set up a budget that works for you and your family and so much more. You can get your copy at lemonblessings.com/planner.

Whatever you decide, just know that I’m cheering you on! We all have times that things don’t work out perfectly or just all out fail, but it’s what we do after that failure that matters most. You’ve got this! Have an amazing day and I’ll chat with you again next time!

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