You’ve been doing all the right things when it comes to saving your hard-earned cash. You’ve cut back on luxury getaways and culinary splurges, exercised caution around Friday night drinks, resisted the temptation of online sales and proudly watched your savings grow. Then out of nowhere – your car has broken down, your dog needs an urgent vet visit, or you need to replace an important household appliance.
Next thing you know, you’re watching a decent slice of your hard-earned savings disappear faster than a sausage in bread at a Bunnings fundraiser.
First of all: take a deep breath. This happens to everyone. You’re not off track – you’ve just hit a bump in the road.
Unplanned expenses are one of the most common obstacles when saving for a specific reason – be it a deposit for your first home, a wedding, or six-months travelling. But it’s not game over. Here’s how to regroup, recover, and keep that dream alive.
Don’t panic – assess the damage
Before spiralling into “I’m just going to give up on this” mode, take a moment to look at the numbers. How much money did you actually have to take out of your savings? Was it a once-off or part of a bigger, ongoing issue?
This first step is about clarity. It’s tempting to ignore the painful numbers you’re seeing in front of you but facing them head-on gives you back a sense of control. Understanding exactly what’s changed will help you make a smarter plan going forward.
Tighten up (temporarily)
Having a recovery plan doesn’t mean you have to overhaul your whole life, but a short-term budget refresh can help you refill the tank.
It’s a good idea to cut back where it won’t hurt too much. Maybe skip Uber Eats for a while or cancel that gym membership and start getting fit outdoors instead. Check your bank account to review your automatic debits and see if you have any other subscriptions you could cancel. Even shaving $100–$200 a month off your spending can help you catch up quicker than you’d expect.
Make it up with micro-wins
It’s not just about cutting back – one good way to get ahead is to look at ways to increase your income.
You could try selling items you don’t use (hello, Facebook Marketplace). Or consider taking on a side hustle – you could pet sit, do some online tutoring or a few Airtasker jobs. It could even be worthwhile looking at your current role and applying for that promotion or requesting a salary review if it’s been a while between raises.
Even small windfalls – like a gift or tax refund – can go toward plugging the gap. Every little bit gets you closer to your goal.
Build a buffer (even while saving)
Planning to get your savings back on track should also include a contingency to manage future unforeseen expenses.
If you don’t already have one, this is the time to build a separate emergency fund, even just a small one – $500 to $1,000 is a great start. While this might sound counterintuitive when you’re focused on your savings, an emergency fund can act as your financial buffer, so future curveballs don’t force you to dip into your savings again.
Thinks of it as your financial seatbelt – it won’t stop emergencies from happening, but it’ll stop you flying through the windscreen when they do.
It can be challenging to pull even this small amount together when you are focused on your savings, so start small if you need to: even redirecting $50 a month into a separate “just in case” account can make a big difference next time life throws a curveball.
Reset your timeline (not your goal)
It’s also important to consider that when an emergency pushes your savings timeline off course, you need to remember that setbacks do happen, and it is annoying if you’ve suddenly been thrown into reverse but, it just means that it’s going to take a slightly longer route than expected.
Life isn’t a straight line. There will be hiccups along the way, and some of them will cost money. You’re still on the road. And you’ve just proven you can handle financial surprises and keep going. So, keep your hands on the wheel – and your savings will recover faster than you think.
