Are you looking for some ways to kick overspending? You’re in the right place!
If you’re struggling to make ends meet and you feel like no matter how hard you try, the cash isn’t enough at the end of the month, it’s time for you to take control of your finances. To do that, you need to start living within your means.
This isn’t about the amount of money you earn, but how you choose to spend it. It can be quite hard to survive financially if you’re spending more than you’re making.
Let’s take a look at some of the tried and tested ways to kick overspending so you can take control of your financial future! Check this out!
1. Assess your current financial situation
OK, so you’ve realized you’ve somehow ended up spending more money than you’re earning. While this may not seem like something big, it’s actually great that you’ve figured out the issue.
So, the first entry on our list of ways to kick overspending is actually the first thing you should do: assess your current financial situation. This includes looking at all of your income sources, fixed expenses such as rent, a mortgage, car payments, or electricity bills, debt payments, and monthly discretionary spending.
Once you understand the situation you’re in financially, you can build a plan and find ways to kick overspending and get out of debt.
2. Create a budget
Creating a budget is one of the best ways to kick overspending and get your financial life in order. Start by tracking your current expenses and income to see exactly where your money goes.
Then break your expenses into categories such as groceries, utilities, travel, entertainment, etc. It’s important to not leave anything behind, so no matter if it’s a $2 expense, you just include it in one of your categories.
Once you have all of your expenses broken down into different categories, create a budget that helps you make ends meet while allowing some room for fun activities. Don’t forget that life isn’t always about budgeting; you should also indulge yourself with things that make you happy.
When you follow a budget, you can find crevices that can be eliminated to save money and put it toward reaching your financial goals. Moreover, it’s important to revisit your budget each month and adjust it as needed.
3. Use cash instead of credit cards
The next entry on our list of ways to kick overspending is something that many financial experts recommend doing. Credit cards are some pretty useful financial tools that allow us to easily buy things out of our budget.
However, if you’re trying to stop spending more than you earn, it’s best to leave your credit card at home and use cash instead. When you physically hand over the money to purchase an item, it feels far different than swiping a card. With cash, you can clearly see the money leaving your wallet. This simple act can help you stop overspending and keep you accountable.
Use your credit card only in case of an emergency, such as medical bills or home repairs. For everyday items, make sure you use cash, and it will be easier to stick to your budget.
4. Shop with a list
This is definitely one of the best ways to kick overspending. How often have you gone to the grocery store without a list and ended up with plenty of unnecessary products in your cart? We’re not here to judge, though; we’ve all been there!
In fact, financial experts point out that almost everyone who goes grocery shopping without a list spends more money than they need.
So, next on our list of ways to kick overspending is to make a list before going to the store and stick to it! If you want to step up your budgeting game, before heading out, list the products you need, their prices, and any discounts or coupons available.
Shopping with a list is great because it helps you stay focused on your budget, ensuring you don’t overspend. The goal is to avoid impulse purchases and stick to the stuff on your list.
Keep reading to discover other ways to kick overspending!
5. Stay away from FOMO
One of the reasons you’re spending more than you make is because you’re experiencing fear of missing out (FOMO). If that’s the case, you get a nagging feeling when you’re not taking part in the worthwhile and exciting things going on around you. To avoid this feeling, you end up overspending.
Before making a purchase, ask yourself if you really need that thing and if you can truly afford it. If it’s unnecessary and cannot be afforded, don’t purchase it! Just because there are lots of people who do or buy something doesn’t mean you have to do the same.
By avoiding FOMO, you can keep your finances in check and save money. Here’s a book that can help you overcome this fear.
6. Learn about money management
In order to put into practice these ways to kick overspending and take control of your finances, it’s helpful if you learn some things about personal finance management. Most people avoid doing that because they think it’s some sort of rocket science, but it’s not. All you need to do is understand the basics.
Learn about taxes, budgeting, saving, investing, insurance, debt management, and retirement planning. Once you know the basics, do some research to learn how to apply them in your own life.
Knowing these concepts and practicing them regularly will help you make smarter financial decisions. It’s also one of the best ways to kick overspending.
7. Create an emergency fund
Next on our list of ways to kick overspending is having an emergency fund. Not only will this allow you to cover unexpected expenses, but it will also give you peace of mind knowing you’ll be able to weather the potential storms that come your way.
Emergencies can occasionally show up at your doorstep, and obviously the last thing you want is to get caught. You’ll end up borrowing money, piling up debts, and using your credit card to pay for them.
Creating an emergency fund will help you prevent this from happening and ensure that money is available when needed. Your debt won’t increase, and your savings will remain untouched.
Start by setting aside a small amount of your income each month, and eventually, you’ll have enough saved up to cover any emergency costs that may arise in the future. According to financial experts, you should aim to set aside at least 4-6 months worth of living expenses in your emergency fund.
8. Make some changes in your lifestyle
Last but not least on our list of ways to kick overspending is something that’s very effective in the long run. Many people who spend more than they make find it difficult to stop because it’s part of their lifestyle. If you find yourself in the same position, try to make some changes to your lifestyle.
For instance, if you want to take control of your finances, you should aim to not buy as many clothes or eat at a restaurant as often as you used to. The key is to find the right balance between your needs and wants and aim to only spend money on what you need.
This being said, live simpler, save more, and make some changes in your lifestyle to match your budget. With a little bit of effort, you’ll soon start seeing the results and be able to manage your spending.
If you liked our article on ways to kick overspending, you may also want to read 15 Ways to Protect Yourself Financially During Inflation.
