You create a budget with the idea that it will provide you with spending and savings guidance. And while this may happen, you never know when trouble could arise in the future. You must be familiar with the top signs that your budget is in distress. This gives you what you need to make immediate changes for the better.

Here are five signs that it’s time to rework your budget:

1. You’re spending more than you save

Spending more than you save is the quickest way to find yourself in financial trouble. If this is constantly happening, it’s time to rework your budget. In this case, you only have two options:

• Earn more money
• Spend less money

From a budget perspective, your best bet is to reduce your expenses. 

2. You’re not saving as much as you once did

Any amount of money that you can save is a good thing, but that doesn’t mean you should be happy with it. You must consider why you’re unable to save as much money as you once did.

Are you spending more? Have your expenses increased? Has the inflation finally caught up to you? 

3. Your expenses have changed

Over time, your expenses tend to change. While there are times when you can save money — such as if you pay off a loan — most of the time when expenses change they increase. 

4. Your income has changed

In a perfect world, your income will always be increasing. However, things don’t always work out this way. You could lose a job. You could get demoted. You could switch positions for more flexibility, despite a lower salary. 

5. Your personal circumstances have changed

Personal circumstances have the potential to turn your budget on its head. Did you recently bring a child into your family? Are you going through a divorce? Are you facing large medical bills from a recent emergency?

When your personal circumstances change, you must review your budget and adjust it accordingly. 

Final thoughts

Keep an eye out for these signs among many others. If you get the feeling that your budget needs to be reworked, don’t hesitate to take action. Review each and every detail, ask yourself the hard questions, and then answer each and every one to the best of your ability.

It’s not good enough to create a budget. You must create and follow a budget that you can trust to guide you down the path toward financial success.