How to Build Your Savings After a Splurge

How to Build Your Savings After a Splurge

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Are you experiencing an empty wallet or debt hangover after a spending spree? We get it. It’s no fun coming home to a blown-out budget.

But while it’s unfortunate to break the vacation spell by imposing strict budgeting and savings plan after the blissful period of splurging and overspending, the best time to do it is ASAP.

Bounce back from a wallet-emptying and debt-inducing splurge with these tips:

1. Acknowledge the financial loss.

“The damage to your savings nest has been done. Now what?”

Feeling guilty about spending “too much” is natural, but it’s better than refusing to acknowledge the problem. The sooner you admit your failure to keep your savings intact and healthily growing, the sooner you’ll find ways to create a plan of action.

2. Create a plan of action.

Your plan of action must include effective debt repayment, financial diet and savings strategies. You can also do side hustles if you want to make more money to build your savings faster.

Debt Repayment

If you’ve mostly used your credit card or loaned money for the splurges, pay the balance off promptly to prevent any interest from accruing. Prioritise credit card balances and loans with high interest rates.

You can also get a personal loan for debt consolidation, which means taking out one loan to pay off other outstanding loans. Alternatively, you can get a consumer credit counselling service to negotiate a debt repayment plan with your creditors or enter into a debt settlement plan if your accounts are charged-off or in collections.

Financial Diet

Adjust your lifestyle or do a budget makeover, depending on the amount of money you lost from overspending. You may need to cut back on some expenses as you work to recoup your savings.

If you love drinking out in bars, restrain yourself from this indulgence for a few weeks or months. Not spending money on expensive bar drinks will not only help your finances recover quickly, but it will also put a limit to your alcohol intake.

Make an Extra Income

Sell arts and crafts products if you have an artistic streak or the stuff you don’t need on online marketplaces like eBay or Amazon. Aside from the extra income, you can also unclutter and organize your space in the process.

You can also drive an Uber or Lyft, do freelance work or get a part-time job. If you’re really eager to earn an additional income and build your savings faster, there are a lot of side hustles to choose from.


Design your new savings plan based on how much you spend over your budget and how long it will take to rebuild the account. For instance, if you blow your budget by $4,000 and you want to pay yourself back in eight months, set up an automatic transfer to your savings account for $500 a month.

3. Set up a savings account for future splurges.

Dreaming of your next vacation or splurging itch? Prevent blowing out your budget again by opening a bank account exclusively for splurge expenses. This will keep you from touching your budget for basic necessities and emergency savings fund.

Don’t forget to create a spending plan. List down all your expected expenses and the estimated amounts. Then, set clear and reasonable limits for these expenses. Make a wiggle room for unexpected spending and a few splurges. You’re most likely bound to overspend again if your budget is too tight.

Recovering from an empty wallet or debt hangover after a spending spree is important to secure your financial future. Act now by working harder, spending smarter and saving bigger.

If you need immediate financial assistance for debt consolidation, major purchases and vacation funds, the Personal Finance Team at Positive Lending Solutions can help you get the money you need. Call us on 1300 722 210 or request a Quick Quote and we’ll take you through the application process as quickly as we can.

See also:

5 Life Hacks to Save Money While Living the Good Life

Finding Balance Between Saving And Splurging

How the 50/30/20 Budgeting Rule Can Help You Save Money

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