You’d agree that it’s so easy to lose track of how much you’re spending. And going overboard on your spending, could hurt your finances.
Once your finances arent in shape, it prevents you from meeting your goals. It’s important to take control of your spending but the following are signs that you are overspending:
Buying what you don’t need
Purchasing things that dont add value to your life is like throwing your money into a trash can. Sometimes you don’t even remember that you bought these items. If you’re engaging in this, it means you are overspending or spending unnecessarily for things that don’t matter.
If you have no budget, you’re likely to overspend. Make it a habit of spending on meaningful purchases that you made plans for. Be intentional about your finances. There are several apps that can help you manage your money and plan your budget for bills and savings. This way, you know that anything outside your budget is not important.
If you cannot save even with a steady source of income, then it is a sign that you are overspending. Savings should be provided for in your monthly budget.
You can’t explain how money disappears from your account
This is a serious sign that you’re overspending. You don’t know where your money went. You just know that your account balance is not “smiling”. If you experience this all the time, you might need to go back to your drawing board to figure out how to reduce unnecessary expenses.
You can’t pay your bills
If your bills are piling up or you’re often late paying your bills, you might want to check your spending habit.
Far from achieving your financial goals
You might be looking at furthering your education, getting new business equipment, buying a house, a car, etc. If you find that you’re having a tough time trying to actualise your dreams, then you might be overspending.
Here’s how to avoid overspending
First things first, put yourself on a budget and prioritize. Avoid double buying (You don’t need the same bags in different colours, at least not for now).
Watch what you spend on. If it’s not going to take you a step closer to achieving your goals in life, then drop it.
Also learn to save more.