My Savings Account Took a Big Hit This Year. Here's How I'm Getting It Back on Track

This summer, I welcomed my second child into the world. It's been an incredible -- albeit stressful -- journey since then, all the more so because I went without a paycheck for months. Even though I'd planned my time off well in advance, it still wasn't easy to watch my savings account balance dwindle as regular bills and then expensive hospital bills kept pouring in.

I'm now back at work, and while it feels good to have stopped the financial bleeding, I'm not content with that. I want to build my savings back up again so I'm better prepared for future expenses. Here are three things I plan to do to pull off this personal finance rebuild.

1. I'm still minding my spending

During my time off of work, I did my best to reduce my spending and limit myself to essential costs. Of course, those are still pretty high when you have a newborn at home. But I did what I could. If it wasn't essential for keeping the lights on or caring for my children, I held off.

That doesn't mean I ditched all forms of entertainment. We still had my husband's income to rely on, so we were able to keep all the streaming services we'd been paying for. But we stuck close to home and passed on most activities that would have required us to spend a lot of money.

It wasn't always easy, but I reminded myself that it was only temporary. Plus, all the things I didn't buy for myself can go on my Christmas list this year -- so my family and friends actually have some ideas for me for once.

2. I'm trying to increase my income

Now that I'm back to work, I'm trying to increase my income at least temporarily. As a freelance writer, that's pretty straightforward: I just have to write more. It means putting in a few more hours every day, but I'm also taking steps to streamline my process so I can get more done in less time. I've only been at it a few weeks, but so far, it's all going well.

Obviously, increasing income isn't as simple for someone who works a more traditional salaried job. But there might still be some ways you can make this happen if you want to. You could try working overtime here and there or asking for a raise.

You could also look into a side hustle if you've got some spare time on your hands. The average side hustle brings in close to $500 per month, and some make more than $1,000 per month. You'll have to save a cut for taxes, but if you set the remainder aside, you could easily grow your wealth by thousands of dollars each year.

3. I'm budgeting a portion of my monthly income to savings

Taking in extra money is helpful, but doesn't always lead to more savings on its own. That's why I'm trying to budget a portion of my income to send to my savings account. Since my income varies, the amount I set aside each month will probably vary as well.

I'm fine with just tracking my income and savings progress through my online bank account, but you could look into budgeting apps as well, if you like. These apps might also help you identify areas of overspending so you can correct the problem and save even more.

I plan to reevaluate my savings goals every month or two to see if I'm trying to do too much or if I have room to set aside even more money. I don't want to set a rigid goal for myself because life happens sometimes and the best plan for me right now may not suit me in the future. It's totally fine if your goals are a bit of a moving target. You just need to keep checking in with yourself to ensure you're heading in the right direction.