7 Things To Do Now If You’ve Lost Control of Your Finances, According to One Personal Finance Expert
Written by
Choncé Maddox
Edited by
Jenna Klaverweiden
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When life throws your finances off track, it can be tempting to give up on your budget altogether. Maybe you forgot about an unexpected bill or overspent on groceries — again. Before you spiral into shame or start telling yourself you’re “bad with money,” money coach Allison Baggerly wants you to know it doesn’t have to be this way.
In her recent YouTube video, Baggerly, founder of Inspired Budget and author of “Money Made Easy,” broke down a practical method that’s helped thousands of people escape what she calls the “crazy cycle” of financial defeat. Here’s how you can reset your money plan no matter what day it is or how far off track you feel.
Recognize the ‘Crazy Cycle’ (and Know You’re Not Alone)
Baggerly described the “crazy cycle” as a pattern many people fall into when their money plan goes off the rails. You create a budget, then life throws a curveball like a forgotten oil change or surprise birthday gift, and you overspend. Guilt sets in, and you start believing you’re just bad with money. The solution? Abandon the plan altogether and go back to spending impulsively — until the next wake-up call.
The most dangerous part of this cycle is the belief that one mistake equals failure. But in reality, no budget will ever be perfect.
This is in line with advice from money expert Rachel Cruze, who encouraged her viewers in a recent YouTube video to budget even if they’ve tried and failed before. She emphasized that money is a part of life that can’t be escaped, so you want to be sure to be in control of it.
Take Back Control With a Mini Budget
Instead of waiting for the start of a new month or your next paycheck, Baggerly encouraged using a “mini budget,” which is a short-term, simplified spending plan that helps you reset immediately. It’s a way to regain control of your finances without the pressure of creating a full-blown monthly budget.
This approach is perfect for moments when you feel overwhelmed, off track or financially discouraged. Mini budgets are flexible, forgiving and focused only on the next few days, which makes it easier to build momentum and restore confidence quickly.
Check Your Bank Balance (Yes, Even If It’s Scary)
Facing your bank account after a spending spree can feel intimidating. But knowing exactly how much money you have is the only way to make a plan that works. Open your banking app, subtract any pending charges and write down the amount you actually have available.
Even if you feel anxious, Baggerly said that you should remind yourself that looking at your balance doesn’t define your worth. It’s just a data point to help you move forward.
If you’re feeling anxious about checking your bank account balance, there are some things you can do. According to Mind Money Balance, creating a plan, giving yourself a schedule and consulting with a friend can help alleviate that anxiety.
Count the Days Until Your Next Paycheck
Next, figure out how many days you need this mini budget to cover. Baggerly suggested budgeting from paycheck to paycheck rather than by month. That means if you get paid next Friday and today is Saturday, you’re working with a six-day timeline.
Knowing your exact window helps you focus your spending and prioritize only what’s necessary. It also prevents you from underestimating how long your remaining funds need to last.
List Every Expense You Expect Until Then
Take a few minutes to mentally walk through your week. Do you need groceries? Will you need to fill up your gas tank? Are there any bills or subscriptions that will be auto-drafted? Write down everything you anticipate spending money on between now and payday, according to Baggerly.
Being proactive about upcoming expenses (big or small) allows you to avoid the “surprise” spending that often derails a plan. Don’t forget to include a buffer for those just-in-case moments. This not only reduces stress but also gives you flexibility if something unexpected pops up.
What If Your Mini Budget Is Negative?
If your expenses exceed what’s in your account, don’t panic. A negative mini budget isn’t a failure, but rather, it’s a signal to adjust. Baggerly suggested looking for areas to cut back, like postponing takeout or skipping unnecessary purchases. If needed, transfer a small amount from savings or brainstorm ways to earn quick cash, like selling an unused item.
The goal isn’t to punish yourself. It’s to create a plan that keeps you afloat without adding more financial stress. By adjusting rather than abandoning the plan, you stay in control and avoid adding to the spiral.
Make It Visible
Once your mini budget is done, don’t hide it. Baggerly suggested printing it out and posting it somewhere visible, whether on your fridge, on your bathroom mirror or inside your closet. The idea is to keep your budget top of mind so you don’t lose track of where your money is going.
Keeping your budget visible also creates accountability. It’s a gentle reminder throughout the week of your intentions and priorities. And if you have a partner or family involved in household finances, this helps keep everyone on the same page. Ramsey Solutions also advises having an accountability partner with budgeting to help you stay on track.
As Baggerly put it, budgeting is like meal planning. You don’t need to figure out dinner for the whole year, but just plan for the next few days. The same goes for your money, and that’s where a mini budget comes in handy. Ask yourself: “Where do I want to spend my money this week?” and go from there.
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