A wave of nostalgia washed over me as I walked into Toys R Us, one of my favorite stores from childhood. Instantly, I remembered being a little girl and making a beeline to the bike section to ride the bikes up and down the aisle. I took my kids to Toys R Us to have an experience like I did before the store went out of business, but instead of going for the bicycles, they rode Power Wheels! I got so caught up in my emotions over sharing Toys R Us with my kids that I overspent big time.
If you ever overspend, you aren’t alone. We’ve all lost sight of our budget or clicked “purchase” without thinking. It’s tempting to ignore the problem or sit in the worry, wondering how to get back on track financially. But the better approach is to take control. Here are 5 ways to bounce back after breaking the bank.
1. Declare a spending freeze.
I was scrolling through social media and saw a mom post about how she went to brunch with her children. To her surprise, the bill was $200. She declared a spending freeze to get her finances back on track.
If you’ve overspent, consider going on a spending freeze for 30 to 60 days. Is Amazon where you mindlessly spend? Delete the app for a month. If you dine out too much, cook at home for a month instead. This spending freeze will help you save money that can be used to catch up on late payments, pay down credit card debt, or rebuild savings.
2. Re-evaluate your finances to see where you stand now.
After overspending at the toy store, I was tempted to avoid looking at my bank account and upcoming bills. I knew that wouldn’t alleviate the feeling of dread though. Instead of ignoring the numbers, I decided to evaluate where I stood.
When you’re figuring out how to get back on track financially, it’s essential to ask yourself: Why did I overspend? How much did I overspend? What bills were due soon? What bills will I be able to pay with my remaining money? How much new credit card debt I did I incur? The answers to these questions will point you to your next step and show you how to avoid overspending in the future.
3. Ask for payment deferrals or forbearance.
One month, I spent more than I planned on my kids’ activities. I had some unexpected expenses, and I couldn’t pay all my bills on time. I called my insurance company to let them know I’d need a few extra days to pay and asked if it could be done without a late fee.
If you cannot make your next payment, ask if there is a forbearance program that will allow you to miss or change the payment date without penalties. If making a payment will cause a family hardship, apply for financial assistance from your state or county or community programs through organizations like your local church, the Salvation Army, St. Vincent de Paul, and Love INC.
4. Look to see what you can return.
I was tired of feeling frumpy, so I decided to refresh my wardrobe. I made multiple purchases between the Target app and in-store, making tracking my spending harder. When I added up the charges, I couldn’t believe it. Reluctantly, I returned most of the items.
Deciding to return something you really wanted isn’t easy. It takes swallowing your pride, and sometimes it means having a difficult conversation with your kids. Making a return is worth it if it leads your finances back on track.
5. Increase your income.
A single mom I know of was trying to recover financially after overspending. She decided to look for ways to earn extra income to provide for herself and her son. How you can earn extra income will depend on your family situation and your current schedule. Explore working for a grocery delivery service. Ask about temporarily increasing your work hours. If you have a freelance skill, consider companies like Upwork or Fiverr where you can market yourself online.
It might feel uncomfortable to look for a second (or maybe third) job, but remember, it’s temporary. Plenty of people hustle on the side to provide for their families or pay down a debit. It’s a great example to your kids that sometimes the only way to recover from financial hardship is by putting in the work over time.
If you’ve overspent, ask yourself how to get back on track financially. What’s one action step you can take?
