What do I do when my financial situation is strained? Do I limit my budget?

In today’s post I will try to answer the question above and flesh out the reasons why I don’t think it’s a good idea. Personally I never limit my budget.


One day you may find yourself in financial trouble. That’s just part of life. It can be that you have fallen ill and have expensive medical bills or that you have just lost your job. These are all circumstances that normally force you to look into your personal finances and take a hard look. In the end you may come to the conclusion that you don’t really need all those restaurant dinners or coffees at Starbucks.

To cut back on low-hanging fruit like that does not do you any harm – it may even be a positive for your economy – but I still seldom do. Why is that? It’s because I have made a budget that allows me to lead a certain lifestyle. That lifestyle is then non-negotiable which means that I simply don’t compromise on the things that I’m doing. For instance, I love biking in the nearby hills and even if I had been unemployed I would still enjoy doing that. Now you can say that going on a bike is not the most expensive of things, but even so it still costs a fair amount each month. So what do I do?

The answer to question may seem to obvious. When my resources are not enough for the month’s expenses I simply increase my income. That is what I suggest that you do too. An extra income will allow you to maintain your lifestyle so you don’t have to cut back on the things that you enjoy the most.


Today we have been talking about personal finance and what to do when there are unexpected expenses. Do I limit my budget? No. I try to increase the money coming in.

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