How to Curb Overspending

For many of us, overspending is a real issue, and it is one of the biggest reasons we build up debt over time. Unfortunately, with the world at our fingertips, it is easier than ever to overspend – with online shopping, internet peer pressure, the disconnect from your money with your card, and easy ways to pay overtime with apps like Klarna with high interest, it’s no wonder we often spend more than we have.

So, how do you curb it and control yourself? As it happens, it’s simpler than you think to start better spending habits.

How do I know if I’m overspending?

In order to solve the issue, you need to identify how you might be overspending.

Did you know the three most common areas where people typically overspend? It’s online shopping, food, and subscriptions so, if any of these three things resonate with you, why not read on, and find out how you might be overspending in these areas.

You buy things before paying bills!

Instead of paying your bills first then spending the leftover money you do have, you go on shopping sprees and order loads of takeout first. As soon as payday rolls around you immediately start spending your money needlessly before sitting down, checking your budget, or paying bills first.

You don’t save!

If you’re struggling with overspending, your savings are likely taking a hit or being neglected altogether too. Instead of spending on needless items every month, why not focus on paying back your debts and putting that extra cash into savings? Future you will thank you.

You spend more than you earn!

Are you consistently playing catch up with your earnings? Do you constantly promise to yourself that you’ll “make up for it next month?” Unfortunately, this also means you’ll send less to your savings account, mount up your credit, or even pull money out of your savings to cover it. What this then means is you won’t adjust your spending and will eventually find yourself in a vicious cycle of debt.

How do I stop?

Please note, if you’re in need of help of debt advice, there are places you can go to for help! Debt advisors can assist you on getting back on track, and they will not judge you!

So, not how to curb that overspending. If you’ve found the habit before you’ve found yourself in deep water, there is still time to kick it. In fact, it is never too late to start new money habits and begin saving instead of spending!

Create a realistic budget!

The first thing you need to do before anything else if you haven’t already, is to set a realistic budget! We have an array of resources where you can do this, from our Money Helper Budget Tool to our previous blog all about how to set up a budget of your own.

Having a budget will help put your money back in your hands, it will also allow you to keep a better charge on your expenses as a whole!

Stop storing your cards on websites!

A lot of websites save your card information to make it easier to checkout. Stop clicking the “Remember this card’ button when buying things online. If you have any cards on any website, remove them. If you have Apple Pay, unlink your bank account. Is your information stored on your internet browser? If so, delete it!

This will then act as a barrier to you and that impulse purchase, after all, having to actually type out your card information gives you thinking time and purpose to your actions.

Think before you buy.

Next time you go to make a purchase, put it down and think about it for a bit. This will give you thinking time to decide if you really need the item you’re about to purchase, or whether you’re simply buying it out of impulse or habit. You may find you even forget about it which, in many ways, will speak for itself.

Never shop without a list.

We always toot this policy during sales season, much like the above. Shopping without a list will likely mean you pick up things you don’t need (especially at the checkout.) When you go shopping without a list, you’re more likely to go down every aisle to make sure you can “remember” everything, but you will always end up spending more than you intended. So, take a list, and you’ll buy what you need, not what you don’t.

Start tracking your spending!

Tracking your spending each day is a great way to discover your pain points and triggers. Not only can that be eye-opening, but it will help you create mindful spending habits. If you track your spending, you know how much you have left in each of your budget categories. There’s no more guessing. You won’t accidentally overspend because you know where you stand for the month!

Create goals!

Creating goals will give you something to aim for, even if they’re small. After all, it’s hard to save if you have nothing to save for, or a total to aim for!

Don’t create goals that are unattainable however, as this will just demotivate you. Why not focus on saving a small amount each week and build up from there?

Keep an eye on subscriptions.

Did you know that the average Brit pays out nearly £500 every year on subscription services? What’s more, 44 per cent admitted they are currently paying for some services which they aren’t using to their full potential and ff these, 53 per cent blame a lack of time for not being able to make the most of them, while 34 per cent said there’s simply too much content for them to cope with.

Are you one of these people? It’s often a good habit to go through your subscriptions and ask yourself if you really are watching that channel or are playing enough games to warrant that subscription. After all, you can always start them again if you change your mind.

Try a no-spend challenge!

A no-spend challenge is a great way to stop your overspending habit. You can do a no-spend challenge for a day, weekend, week, or month.

If you’re just starting out, we recommend doing it for a day or a weekend!

Overspending doesn’t have to define you. And it’s never too late to start changing your money habits and curbing the bad ones! If you need genuine help with debt and money worries, don’t forget that there is help for you too!

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