You’ll encounter something that will set you back financially every now and then. Maybe it’s something you could’ve avoided, like taking an expensive impromptu vacation. It could also be something unexpected and unfortunate that just happened, like an accident or a loved one needing money. Whatever happened, it’s important to understand how to get back on track financially.
15 Steps to Get Back on Track Financially
Getting back on track financially isn’t an easy process. It means looking at what went wrong and taking steps to prevent them in the future. Sometimes, it means taking a look at your own actions and what you could have done better. Here are the 15 steps you must follow to achieve your financial goals despite setbacks.
Reflect on your setbacks/mistakes
What caused you to be set back financially? Was it something you could’ve avoided, like a shopping spree or taking time “off” and spending money without saving? These are mistakes, and the only person that can correct them is you. Find out what you did wrong, and find a way to stop that from happening again.
There’s also the chance that your setback was something that you couldn’t have avoided. For example, you might’ve had an accident that caused you to wipe out 80% of your emergency fund. That’s not a mistake but a setback that can happen anytime. These can always happen, sometimes one after the other, which makes it essential to get back on track ASAP.
Assess your current assets and situation
Where are you right now, and where do you want to be? To get back on track financially, you need to know where you are and where you’re going. You can’t define what being “back on track” means without knowing this.
Build/Rebuild your emergency fund
If you were set back by an emergency, it only makes sense to rebuild your emergency fund. Without one, you may have no other option than to take on debt–which is definitely not ideal. There are some severe consequences to not having savings or an emergency fund.
Adjust your budget
If you find that you’re spending too much on certain things, then it’s time to adjust your budget. This might mean tightening your leisure fund or making a few sacrifices. No matter what adjustment you think you should make, you should always be trying to…
Cut your costs
Even the smallest bit of savings can help when you’re learning to get back on track financially. Time to take advantage of those discount codes, coupons, gift cards, and vouchers!
Increase your income
If you want to get back on track financially and fast, one of the best ways to do so is to increase your income. This might mean getting a promotion or a new job, but I recommend getting a side hustle. It’s always a good idea to have multiple ways of making money. That way, you won’t be in danger if your sole source of cash dries up.
Get back into the money mindset
Getting back on track financially means getting back into the mindset of saving and spending money wisely. Keeping certain wealth-building habits helps you stay on track.
Move the goalpost
Failing to achieve your goals simply kills motivation, especially because of something out of our control. “Moving the goalpost” to a more achievable goal can help you stay motivated instead of working towards an impossible goal.
Get aggressive with your savings
If you think your goal’s within reach despite the setback, having an aggressive savings plan can help tremendously. By saving/investing more money, you’ll be able to catch up to where you should be with a few sacrifices.
Make a new timeline
Life happens, and sometimes, you won’t be able to achieve the milestones you’ve set for yourself at specific points. For example, young people think it’s easy to get a house until they realize how much sacrifice that entails. There’s nothing wrong with remaking a timeline after a better understanding of how you and your money work.
Decrease your screen time
Is financial insecurity mentally affecting you? Or can you simply not stop adding more and more items to your Amazon cart? Decreasing your screen time can help protect you from toxic financial habits and thoughts.
Have a tracker
Trackers help keep tabs on how much you’re spending and what you’re spending on. They’re also handy for staying on track after you’ve been derailed for a while. After all, “track” is right in its name!
…Or an accountability buddy
Having an accountability buddy to hold you accountable whenever you even slightly start to go off track can help. This means that you’re pressured to achieve your financial goals not just by yourself but by someone else as well. If you want an added challenge? Give yourself a punishment whenever you find yourself starting to go off track again.
Don’t know anyone who’s as serious about money as you? That’s because you haven’t joined my Wealthbuilders Facebook group yet! This community is full of women wealth builders looking to grow their wealth over time! In this group, you’ll find important tips and discussions on the best ways to build wealth. The best part? Membership is free!
Repeat
This won’t be the last time you’ll be derailed, and you need to know how to get back on track financially. That’s why you have to keep repeating these steps and building habits every time it happens. That way, you’ll keep moving forward even with a few setbacks.
Keep learning
Don’t focus on getting back on track financially–learn how to get ahead! That’s why you should join the money squad! As a member, you’ll receive exclusive financial advice sent weekly via phone! Signing up is absolutely free and takes just a few seconds, so sign up today!
