We have all been there before. You know the situation where you feel like you have to spend to feel better, or sometimes I hear the phrase, “I can’t help it.” “fear of missing out (FOMO),” some people sometimes overextend themselves by spending money on things they may not need. Below are 4 things to do if you are always overspend.
Before we dive into the 4 things to do if you always overspend, I will assume you have a budget. Having a budget is one way to know if you are always overspending. If you don’t have one, you may not even recognize that you always overspend. You can click here to view my budget worksheet. The worksheet will help you to identify your monthly expenses, so go ahead and download your free copy here.
Let’s get back to business and explain why doing the following can help to reduce your overspending habits.
CREATE A MONTHLY BUDGET
As I stated above, it is almost impossible to curb your overspending habits if you do not have a budget. Once you have identified your monthly expenses, which must include the four basic needs, you can start allocating the rest of your money to your other monthly needs. The four basic needs are shelter, transportation, utilities, and food.
While some of your monthly expenses are a basic need, there may be opportunities to cut back on your spending. All the aisles at the grocery store or the clothing store with the new arrivals aren’t the reason you went to the store. Always go shopping with a list, stick with it, and don’t buy anything that isn’t on your list. That is how you get caught up in that web.
AVOID SALES
Do you know about RAKUTEN? It is an app that allows you to shop and earn cash back from over 2500 stores. Many people spend so much money shopping on Rakuten because of the cashback. Think about it, you are spending money you may not have because of 3% cashback.
I use RAKUTEN to shop all the time, but only for items, I need. I do not check for cashback first before I decide to buy. To curb your overspending, you have to resist sales, especially for items you do not have on your budget. You do not need the discounted item at the store since it was not on your budget.
DELAY GRATIFICATION
There are many times where I wanted to purchase something but did not after a day. I wanted a Gucci sweater. It is a sweater I always wanted to own, until I checked the price. It was $1000. The price didn’t bother me. After two days of unintentionally thinking about it, I decided not to purchase.
So the next time you want something that is not on your budget, give yourself a few days to think about it. If you want it after a few days, then incorporate the amount into your budget the following month.
CHALLENGE YOURSELF
To challenge yourself, pick a specific month, and plan to spend money on your basic needs only. If you can go an entire month without spending beyond your basic needs, try to do it again until it becomes a habit. If you need to purchase an item outside your monthly budget, you can add it to the next month’s budget. The key here is to budget and stay on course.
So when you agreed with your friend to travel to ARUBA next month, make sure you have it in your budget before you say yes. Also, think about the above 4 things to do if you always overspend the next time you decide to go on a shopping spree.
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Till Next Time,
Charly,
Delay gratification indeed. I have not done any shopping for clothes, jewelry, or shoes in the past 4 months. Perhaps it’s the pandemic and I have no where to go nonetheless it felt good having some restraint on shopping.
Keep it up! You got this
I love the Challenge Yourself advice. In April 2019, I told myself that I wouldn’t buy clothes for the rest of the year. It was the best decision I made. I got so frustrated with the amount of clothes in my closet and suitcase (because the rest wouldn’t fit in my closet) that I barely even had the chance wear. There’s 365 days in the year; and most of the time, I am in work clothes, church dresses, or sweats. Let’s be real, I didn’t need all of the clothes in my closet but for some reason, I told myself that I “needed” this dress for the wedding, the date, or the brunch. For any event that I attended, I found an outfit to wear right in my closet – and I am surprised every day at all of the options I’ve always had. Challenging myself made me feel super proud and accomplished.
Thanks so much for reading. Challenging yourself may seem impossible but once you are able to get through the first month, it becomes better 😊