Reasons Why You Overspend & How to Stop Blowing Your Budget

I don’t know that I always have buyers remorse, but I do have spenders remorse! Have you found yourself coming back from a shopping trip feeling that you have spent way more than you wanted to? You are certainly not alone. There are many reasons why people overspend so you may find that you identify with one or more of the things in this article. I will also talk about about helping you find a few ways to fix the problem that is draining your bank account every month. Let’s get to it. 

Impulse Buying

It has been estimated that over three quarters of shopping decisions are made on impulse. This is a shockingly high percentage, and a habit that you certainly should get out of so you can stop buying things that you really don’t need every time you take a trip to the shops. Stores know that people tend to buy on impulse and do everything they can do encourage it. Look out for the common tricks they use like sales that are not really good deals, or placing unnecessary items near the register and be strong enough to counteract them.

Not Shopping Around

If you just accept the first price that you see when you are buying something, you are much more likely to pay over the odds for it. The internet is invaluable when it comes to comparing prices, so you should seek to use it in the best way possible to search for good prices. Also, you should seek to find out whether there are any good offers or discount codes that you can use – just take a look at these ones for Kohl’s. Shopping should be a slow process despite stores desperately trying to speed it up all the time.

Lack of a Budget

A big percentage of households don’t have a monthly budget, which essentially means that they have no idea what they are spending on things like food, entertainment and clothing. If you don’t know what you are spending, you have no chance of making cutbacks where necessary. Rather than being restrictive, a budget is something which should help you on the path to more financial freedom. Know where your money is going and be happy about what you are able to spend each month. 

Underestimating Little Expenses

While you probably know exactly how much you are paying every month for rent, utilities, car payments etc, it is the little things that you buy which significantly add up over time. A daily cup of coffee at $3 a time will end up setting you back over $1000 in a year. Doing calculations like this can be very sobering, so you should try to do them for all your ‘little’ expenses to get a better impression of how big they could actually end up being. I was shocked at the mall when I bought 3 small lemonades and an individual bag of pretzels and spent over $20! Just getting snacks at the mall like this adds up fast. 

Inability to Say ‘No’

If you are the kind of person who says yes to every activity that involves spending money, this can all really add up in the long run. Of course, that is not to say that you shouldn’t treat yourself from time to time, but it becomes problematic if it has a dramatic effect on your budget. Instead, try suggesting some cheaper or free activities that don’t dent your savings.  You can play Frisbee golf for free at a park, visit a museum or zoo on a free or discounted day or the internet to find great deals and big discounts on activities. But, you don’t need to say yes to doing everything you get invited to. Being financially responsible is more important than being seen at every event. 

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