Published
October 19, 2024

How to recover from a financial setback

Budgeting

So your child got sick and you have some unexpected medical bills.  Or your car needs new tires.  That’s a real adult problem right there.

The key to bouncing back is creating a budget that’s realistic AND focused on recovery.

First, figure out where you are right now. Take a clear look at your income, expenses, and any debts you need to manage. It’s important to be honest with yourself about the situation. Pretending like it doesn’t exist won’t make it go away.

Next, prioritize your needs. When you’re in recovery mode, essentials come first—food, housing, utilities, in that order! This is survival mode.

Then, look for areas where you can cut back. Having a physical budget can help you identify the areas that may need to go, and remember this is just temporary.

And third, get creative!  Budgeting is about balance, so you have to look at both expenses and income.  What can you do to bring money in the door fairly quickly?  You need a plan.  

Finally, be patient and don’t be too hard on yourself. Setbacks can happen to anyone.  It doesn’t mean you’re a failure. Recovering takes time, but you can regain control of your finances.

Create your budget here!