Five Ways You’re Overspending and How to Fix Them
February 25, 2020 | Mason Roberts
Keeping that savings account in an upwards trend can be difficult when you are always overspending for things throughout the month. Whether you know it or not, you may be spending way more than necessary for everything from food to interest. More common ways you may be overspending include:
- Not using a budget
- Frequently going out to eat
- Using too much credit
- Paying bills off slowly with low payments
- Paying too much for groceries
While it is hard to notice the effect spending too much has on your finances, if you take the time to add it up, overspending can cost you hundreds or thousands each year. For example, if you reduce the number of times you eat out per week by one, you can save an average of $25 a week. This adds up to over $1,000 in savings each year! Here’s how you begin to stop overspending today.
1. Create a Budget Plan
One of the best ways to limit spending and ensure your funds don’t go towards non-essential purchases is to create and follow a budget. Nowadays, maintaining a proper budget can be as easy as setting up an app. Apps like Acorn and Mint allow anyone to easily record payment due dates, limit spending, and even check credit scores. Without a budget, it is easy to spend an extra couple of bucks on purchases and harder to know when you are going over your limit.
2. Avoid Frequently Eating Out
A common way people end up overspending is by going out to eat. Making a full meal that can feed you for multiple days can cost around $20. That is around the price of an average meal at a restaurant including tips. By simply measuring out your spending when going out and limiting the number of times you do, you reduce your spending and even eat healthier. Cooking your own food is a great experience and can leave you with a healthier diet in the long run.
Related content: What Happens When You Get A Small Tax Refund?
3. Do Not Use Too Much Credit
Mississippi has many great attractions, but going out all the time can seriously hurt your savings. Using too much credit can mean you struggle to pay off debts. Not only can it make it more difficult to pay off your debts, but it is way harder to noticed overspending. By the time you noticed, you may have used up all your credit. You can instead save your funds and keep your credit card for emergency situations to avoid overspending.
4. Try to Pay Debts Off Quicker
Some debt comes with hefty fines or high interest rates that can make paying it off slowly more costly than paying it off in its entirety. Options like a Mississippi title loan or finding payday loan places can help you gain financial stability. If you need to pay a debt off before late fees arise or it impacts your credit score, then a title loan can help get you the funds you need.
5. Avoid Overspending on Groceries
Buying pre-made meals or only getting the most expensive brand name products can mean spending twice as much for half the groceries. By taking advantage of deals and choosing generic products, you can save money and keep in line with your budget.
Improve Your Financial Situation Today
You do not need to wait before starting to improve your financial situation. You can start pocketing extra cash right now just by following these 5 quick steps. In the meantime, if a financial emergency ever does arise, you could find fast relief at your nearest title loan location.