7 Financial Fixes You Can’t Ignore Right Now

Understanding the "Crazy Cycle" and How to Break Free

When life throws your finances off track, it can feel like an overwhelming challenge. Whether you forgot about an unexpected bill or overspent on groceries, it’s easy to feel defeated. However, financial coach Allison Baggerly emphasizes that this doesn’t have to be the end of your budgeting journey. Instead of giving up, there are practical steps you can take to reset your financial plan and regain control.

Recognize the Pattern and Know You’re Not Alone

Baggerly describes the “crazy cycle” as a common pattern where people create a budget, face an unexpected expense, and then spiral into guilt and frustration. This leads them to abandon their budget entirely and return to impulsive spending. The key is to recognize that one mistake does not mean failure. No budget is perfect, and setbacks are part of the process.

This idea aligns with advice from other financial experts who encourage people to continue budgeting even after previous attempts have failed. Money is an essential part of life, and being in control of it is crucial for long-term stability.

Take Back Control With a Mini Budget

Instead of waiting for a new month or paycheck, Baggerly recommends using a “mini budget.” This short-term, simplified spending plan helps you reset immediately without the pressure of creating a full monthly budget. It’s ideal for moments when you feel overwhelmed or financially discouraged.

Mini budgets are flexible and forgiving, focusing only on the next few days. This makes it easier to build momentum and restore confidence quickly. By breaking down your finances into smaller, manageable chunks, you can regain control without feeling overwhelmed.

Check Your Bank Balance (Yes, Even If It’s Scary)

Facing your bank account after a spending spree can be intimidating, but it’s an essential step in creating a realistic plan. Open your banking app, subtract any pending charges, and write down the amount you actually have available. Knowing your balance allows you to make informed decisions and avoid further financial stress.

If checking your balance feels anxiety-inducing, there are ways to manage that. Creating a plan, setting a schedule, and consulting with a friend can help alleviate some of the tension. Remember, looking at your balance doesn’t define your worth—it’s just a data point to help you move forward.

Count the Days Until Your Next Paycheck

Next, determine how many days your mini budget needs to cover. Baggerly suggests budgeting from paycheck to paycheck rather than by month. For example, 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 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.

Being proactive about upcoming expenses helps you 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—it’s a signal to adjust. Baggerly suggests looking for areas to cut back, such as 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 suggests 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.

Final Thoughts

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. By taking small, consistent steps, you can regain control of your finances and build a more stable future.