Money Reset: How to Get Back on Track Financially
No matter how much you plan ahead, sometimes life has other plans for us, and it's easy to get off track financially. Whether you started the year with goals of saving more money, paying off debt, or getting better control over your finances, life can sometimes throw you off course. If you’re wondering how to get back on track financially, I’ve got some tips to help you recover and thrive.
How to Get Back on Track Financially: 11 Practical Tips
1. Reflect
I know (believe me, I KNOW) that it is hard to look back upon your mistakes. It’s painful and can bring up feelings of shame, embarrassment, anger, sadness, and more. But mistakes (and even setbacks that were beyond your control) are also opportunities to learn.
You can ask yourself:
What could you have done differently?
What could you do in the future to avoid the situation?
How could you be better prepared?
By reflecting on your financial habits, you’re already on the path to getting back on track financially.
2. Create habits that stick
Changing your habits is HARD. If you’re feeling regret right now because you tried to change a habit and didn’t stick with it, you are completely NORMAL. Humans are wired to maintain the status quo. It’s much easier to stay the same than it is to do something new.
Here are a few tips for building new financial habits that I’ve personally found to be the most useful:
Automate: The more you automate, the less you have to rely on your memory, motivation, feelings, etc. It all happens without you having to think about it.
Get an accountability partner: Even when you know what you are supposed to be doing, it can be hard to make yourself do it. Hiring a coach (like me!) or working with a friend can help with holding yourself accountable and sticking to it.
Pair a new habit with an old one: Let’s say you have a new medication to take. If you try to do it at a random time, you’re more likely to forget. But if you pair it with another habit, like making your morning coffee or brushing your teeth, you’re more likely to remember.
Know WHY you want to create the new habit: You have to know why this is important to you and keep reminding yourself of that regularly. Your motivation has to be strong in order to stick with your new habit and get back on track with your finances.
3. Consider a different budgeting method
Budgets come in many forms. One of the primary reasons budgets fail is that you’re using a method that isn’t aligned with your goals, habits, personality, tendencies, lifestyle, etc. If you’ve tried budgeting before and weren’t able to stick to it, it’s not that you’re bad at budgeting—you may just need to learn a different method of doing it.
Learn the basics of budgeting for beginners.
4. Schedule time to talk about and review your money
What gets scheduled gets done. I’m a self-employed, busy mom of three and I know exactly how hard it is to make time for anything. And I also know that money and finances often get shoved to the back burner. Before you know it, you haven’t reviewed your finances in months and you basically have to start over.
One way to make this a little easier is to make a plan and/or schedule time. You can set up an appointment (with your partner if you have one) to review your finances every month, or more frequently if needed.
5. Make your goals more realistic and specific
Did you set goals that were too big and vague? If so, that’s usually a recipe for disaster. You need to make sure that your goals are actually achievable and lay out a specific plan to make them happen.
For example:
Vague Intention: Save for retirement
Specific Goal: Set up an automatic transfer of $500 every month into a Roth IRA
Vague Intention: Spend less on food
Specific Goal: Reduce eating out to once/week and start shopping at Aldi instead of Whole Foods.
Vague Intention: Get out of debt
Specific Goal: Pay the minimum monthly payment on all debts and put $200 extra toward the debt with the highest interest rate.
Helpful Resources:
6. Remember that every little bit counts
Saving small amounts can feel insignificant—like you’ll never reach your goal at that rate. And it’s understandable to feel that way! You won’t be able to buy a new home just by giving up a daily avocado toast latte.
At the same time, small amounts CAN add up. And more importantly, it’s not about each individual action—it’s about creating the habits and mindset of someone who saves money. Once you start thinking about saving money, you’re more likely to do it more often and that’s what can make a difference when you’re trying to get back on track financially.
7. Take one step at a time
Trying to make a huge change all at once can be counter-productive. For example, I worry anytime I see people trying to go from a lifestyle of accumulating debt to extreme frugality all at once. Why? Because it is unsustainable. You’re more likely to stick to it if you make small, incremental changes and give yourself a chance to adjust before moving to the next step.
8. Keep learning and get help if you need it
It’s always possible to learn more things. Take a class! Read a book or a blog! Even re-reading something you’ve read before can provide new insight that you didn’t pick up on before.
And there’s no shame in getting help if you need it. It’s unreasonable to think that you’re magically going to be able to do everything by yourself. If you need help, get it! The benefit you’ll receive can be more than worth the cost of it.
A financial coach (like me!) can help you analyze what is happening with your money, give you tips to help you get ahead, and provide accountability and support to make sure you stick with it.
9. Focus on what you can control
With personal finance, there are many external factors that make life harder. You have no control over wages, the economy, inflation, pandemics, and more. But focusing exclusively on those factors can lead you to give up.
Instead, focus on the things that you CAN control—your choices, decisions, beliefs, habits, etc.
Learn more: Taking Control of Your Finances in an Unpredictable World
10. Focus on what is important TO YOU
It’s easy to get lost in the pressures of modern living. Advertisers and social media show us all of the things that people have and do. You have to remember that most people do not live like that. Most people do not have magazine-worthy homes, go on expensive vacations every year, have the latest cars and technology, etc.
You have to stop comparing yourself to others and focus on what it is that YOU want out of life. Align your money with your values to create the happiest, most fulfilling life you can.
11. Forgive yourself
Mistakes happen. Plans change. I truly believe that most of us are making the best decisions we can at any given moment with the information and resources we had available at the time. So don’t be too hard on yourself. Give yourself a little compassion and move on.
Remember, your self worth has nothing to do with your net worth. You are worthy as a person just the way you are.
And no matter what, you have the power to take control of your life and finances. It all starts with believing that it’s possible and taking that first step.
Getting back on track financially is possible with the right mindset and strategies. By following these tips, you can regain control of your money and move toward a more secure financial future.
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