This post shows you tips for how to stop overspending your budget!
Does a budget give you feelings of F.O.M.O (fear of missing out?)
You’re not alone! Financial stability should be a priority for everyone but you shouldn’t feel restricted in living your best life!
To me, overspending is about mental behavior more than money. There’s usually something else going on deeper beneath the surface.
For me, I was subconsciously punishing myself for having debt in the first place, with restrictive habits that led to me blowing my budget at the end of the month.
It was a toxic and unproductive cycle! And I actually spent even more money this way.
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If you’re serious about your finances, this post shows you how to stop overspending your budget so you can live a fulfilling life.
These are all things that I have personally done that worked for me!
Note: While a budget is a great foundation, increasing your wealth for financial independence is the goal.
Be sure to take a deep introspective look at your habits, lifestyle, and the people around you to know what changes you have to make!
If you cannot be honest with yourself, then you will continue to be stuck in the same cycles.
10 Helpful Ways to Stop Overspending Your Budget
1. Make a Long-Term Financial Goal – And Not Just Being Debt-Free
A personal finance journey can be such a boring process if you have no long-term goals or something to look forward to.
You still have to live life.
For me, a big money goal was to invest in a hobby and have enough money to pay for violin lessons. And they are worth every penny!
It’s easy to caught up in paying off student loans or debt but work to be financially free while still enjoying life’s little luxuries, whatever that means to you!
2. Learn How to Say No to Eating at Restaurants
One of the biggest parts of overspending my budget was eating out at restaurants.
Whether it was because I wanted something quick for work or I was eating out with friends, food was the easy go-to.
Learn how to say no to outings. If you receive pressure from friends, tell them the truth. If they are your friends, they will be supportive of your journey!
Things to Do Besides Eating at Restaurants:
- Participate in a potluck. Invite a group of friends to come over. Everyone has to bring a specialty dish to contribute for everyone.
- Try cooking meals from favorite restaurants. If you like to experiment with new recipes, this is a fun and creative way to save money.
- Do a pantry challenge. Don’t buy new groceries until you’ve used up all the food that is currently in your fridge or pantry!
3. Make Weekly Budget Goals Instead of a Monthly One
A monthly budget can be intimidating and too far in advance to plan. Because hey, life happens to us every day!
Instead of tracking month to month spending, try breaking down your budget by the week.
For example, if you’re single and you budget $500 a month for groceries, track your $100/weekly for groceries with a $100 leftover for incidentals like toiletries.
Weekly spending is much easier because you are more intentional about pricing and avoiding impulse purchases.
The best part is that if you don’t completely hit your targets, that becomes extra fun money to do whatever you want with!
4. Hand Over Cash Instead of Swiping a Card
Nothing makes you more aware of your spending than handing over hard-earned physical cash money.
When you can actually see the money leaving your wallet instead of some digital numbers being exchanged on a screen, overspending becomes more real.
While this might be unrealistic for paying bills like a car payment or rent, I take out money every paycheck for spending money to do whatever I want.
I don’t restrict myself but once it’s gone, it’s gone. And that’s that! That’s when you start having thoughts like, “You know what? I do have food at home.”
5. Automate Savings By “Paying Yourself First”
You are the biggest and most important bill of the month and should be saving accordingly.
Instead of worrying about how much money is left after paying all of your bills, automate your savings for every paycheck.
I have a traditional bank for my main accounts and a credit union that is only for savings.
Every time I receive a direct deposit, money is automatically sent to the credit union and my investment brokerage without me even knowing.
It doesn’t matter if it’s $20 or $200 a paycheck to start, always pay yourself first!
6. Do Grocery Shopping Online According to Sales
Use Instacart, Wal-Mart, or any online grocery service near you. As you add items, you can watch the bill grow to hit your budget target and substitute where needed!
You can also “clip” online coupons for stores and search for online deals in real-time. Just deciding to switch up your usual vegetable or meat for the week can save tons of money.
Once the weekly budget is met, I make meals from that. Meal planning your meals is super helpful but if you don’t have time, try to stick with a protein, carb, fruit, and veggie.
7. Change Shopping Habits
Food is such a huge part of a budget so being strategic about your grocery necessities can help.
Here’s some strategic ways that I save:
- Buy in Bulk. Non-perishables like toilet paper and laundry detergent would be worth buying at a Costco if you have kids. Offer your membership privileges to others in exchange for other goods and services or vice versa.
- Do a Pantry Challenge. Before you go grocery shopping, take inventory of what is in your pantry and only buy groceries that will complement what you have until it’s completely gone.
- Change Stores. I save money shopping at Aldi for everything I can and then supplement with Wal-Mart when needed. Check out local farmer and meat markets near you!
8. Learn Skills to Start a Side Hustle
If you have income coming in from a side hustle, you won’t feel like you’re financially underwater living paycheck to paycheck.
However, try to make the side hustle worth your time so you are learning a new skill or able to network in a new industry while earning part-time income.
For example, I took up freelance writing which helped me transition careers and increase my salary.
Side Income Ideas:
- Content creation and social media
- Passive income through cryptocurrency
- Digital products and blogging
- Service (Personal shopper, tailor or seamstress, babysitter etc.)
Plus, with a side hustle, you’ll have the extra money to start paying off any debt or start an emergency fund so it’s a win-win situation here.
9. Learn the Art of Delayed Gratification
If you see something you really want, take note of it. If it’s online, you can even put it in your cart.
Take the day to think about it. Research the product and ask yourself, is this really adding value to my life?
Can I substitute it with something cheaper? Is it something I can DIY myself?
If after some time you still want it, make the purchase but 99.9% of the time, you will find that first initial feeling goes away.
10. Attend Financial Counseling Through a Job
If you have a corporate job, usually they have free resources through their 401K provider or retirement coach.
There are also EAP (Employee Assistance Programs) that can point you in the right direction.
With many positions being remote, you can schedule a live Zoom session where you participate in a question and answer session.
Some even provide free therapy sessions for how to stop overspending. I know this is a privilege for most, but if you have access to these programs, use them!
This Post Has Shown You How to Stop Overspending Your Budget: Ways That Actually Work
With a little practice, these tips will help you to stop overspending your budget so you can live the lifestyle you love!
Find these tips helpful? Please share!
