Took a big hit at the casino - roll with it
Wanted to share this experience as example of the Roll with it approach of YNAB. Due to poor judgement on our part, we lost more money than we intended at a casino this weekend. This resulted in a huge overspend on our "Entertainment" budget. Ooops - that was unfortunate - now I have reallocate budget so I don't have a big red -$500 next to Entertainment. Here is what I did: We have a Vacation category where we have been saving up and it currently has more the $500 available. I'll move available balance from Vacation over to Entertainment to cover the overspend. In the coming months we will need to decide: take a cheaper vacation, or wait longer to replenish the vacation savings, or cut back on other discretionary spending to funnel back into Vacation savings, or find some other way to bring in extra income - like selling stuff we have laying around on craigslist. What we will NOT do is take on debt.
The win for me: planning out how to handle this hit and not feeling like I completely screwed up a rigid budget.
Excellent example & reallocation of funds. What we tend to forget when we all get so caught up budgeting and paying off debt, that we are allowed to spend money too. It's just that it is controlled spending in accordance with our goals. You had fun, it cost more than you anticipated, so you made adjustments. Done. Will you gamble again? Who knows, but you'll probably put a cap on your fun money at the casino so then the money is just for fun. :)
I love how you're re-evaluating your priorities, Daily Impressions !
In the heat of the moment, the casino won out and now readjusting for future vacations or entertainment is on the table. Cutting back in other areas or selling items you don't need are great ways to recoup those funds and I love your attitude towards debt! :)