7 Easy Ways To Control Overspending

In last week’s blog, we looked at some of the causes of overspending. In this blog, let’s take a look at some easy ways through which you can control this habit.

1. Make a budget

make a budget to control overspending

Perhaps the most obvious solution is to create a budget. Not only will this help you organize your finances, you will have an idea of where your money is going and should go ideally.

Your budget can be tailored to your requirements and should include 30% for your wants, 20% for savings, and 50% for your monthly necessities or needs.

2. Put limits on your cards

put limits on your credit cards to control overspending

While a credit card is a great financial instrument, if misused, you can end up with a lot of debt due to high interest rates. While debit cards do not come with interest charges, if you are not disciplined enough, you can easily clear out your account.

If this is one of your problems, then why not put limits on your cards? It will be easier to control your overspending urges then.

3. Examine the real reason behind overspending

examine the real reason behind overspending

Sometimes overspending is not only linked to lack of discipline but also other issues. Perhaps shopping is a way for you to relieve stress and fill a void in your life. Examining the reasons for your overspending habits can help you find a way to stop it.

You can take help from your family and friends if you feel that your spending habits are going out of control. A financial advisor can help you channel and organize your spending in a better manner, one that is better for your financial health.

4. Auto debit money into a separate account for savings and investments

auto debit money into a savings account

One of the best ways to prevent unnecessary spending is to set up an auto debit feature for your account. At the start of the month, ensure that the amount required for bills, savings, investments, etc. are all auto debited from your savings account.

The rest is for you to use as you wish. This way, not only will you fulfill your financial obligations for the month, you can also spend money guilt-free without harming your finances.

5. Track your spends

track your spending

Spending without tracking your expenses is just an invitation for debt. Luckily today there are many easy ways to track your spending. You can use Excel to manually track and manage your spends or you can use a high rated app such as the moneyview Money Manager app.

Most banks send an SMS every time a certain amount is credited to or debited from your account. If this feature has not been activated, we would highly recommend contacting your bank getting it done.

6. Set specific financial goals

set specific financial goals

Having a goal will give you something to work towards and in turn will make you more disciplined. Goals do not have to be lofty. Even something as simple as investing 5% of your salary each month is good enough to begin with. 

When you have something exciting to save for, your overspending impulse will start getting curbed.

7. Spend more using cash

spend more using cash

While digital transactions are convenient and hassle-free, it is also hard to keep track of it. Using cash on the other hand will psychologically make you more aware of the money that you are spending. This way, you may be compelled to spend a little less. 

In Conclusion

If you are an over spender then do not worry. There are easy solutions that can help you become more disciplined and the above are just some of the more popular ones.

What are some of your solutions? Are there any tips that have helped become a more disciplined spender? Let us know in the comments below!