The 6 Most Common Reasons for Overspending Problems

March 12, 2021 | June Mckaig

overspending problems

Overspending problems are typically reason #1 why most Americans find themselves living paycheck to paycheck. If you wish to stop overspending, then the first step would be to identify what your reasons for overspending are.

And we’d like to give you a hand! We’ve compiled the 6 most common reasons for overspending. Take a look at your bank statements and try to figure out if any of them suit you. Also, we will explain how a payday loan can help.

Why People Have Overspending Problems

1. Trying to Keep Up

Wanting to have what people around us have is one of the most common reasons for overspending. It’s not just people we keep seeing on social media, it’s our friends – when they go shopping, when they go to nice restaurants, when they go to events, we want to be there with them “not to miss out on life”.

What we keep forgetting is that they’re likely experiencing the same overspending problems as we do. We feed into the toxic loop spending money none of us should be spending to “make memories” that could be easily made for a much lower price.

2. Falling for Sales

Sales are another big one among the reasons for overspending. When we see something on 30-70% sale, the temptation of purchasing it surges – even if we don’t need the thing.

And the bigger the sale, the bigger the temptation – what if I don’t purchase the thing and need it in the future? I could get it now for less than half the price, that’s saving money! In reality, most things you’ll purchase on sale will end up unused. Even if you pay little money for it, it’s still overspending when you don’t use it.

Sales are useful for items you need on a constant basis, or when you’ve pre-planned the purchase and saved up for it. Spontaneous sale purchases, on the other hand, lead to overspending.

3. Stress

We all lived through 2020 so at this point, it’s no secret that stress is a common cause of overspending problems.

This can be mitigated by a strategic approach – keep online shopping to a minimum, have a budget, and use a shopping list when you go to the store.

 

Related content: How To Stop Spending So Much Money Once And For All

 

4. Underestimating Small Expenses

An oft-ignored but popular one among the reasons for overspending are… small expenses we ignore. $5 there and $10 here don’t seem like much when we’re at the shop – but they tend to pile up, and often grow into several hundred dollars by the end of the month.

This is another reason to start budgeting and keep a shopping list.

5. Not Having a Savings Plan

A lot of overspending problems stream from the fact that we tend to view our paycheck as something we can (and should) spend in full until the next one comes around.

This is not a problem people who have a savings plan have. When a certain percentage of your income automatically goes into savings and you’re left with less to spend, you start adjusting your expenses accordingly.

Setting up an emergency fund could help a great deal (and be useful in the future).

6. Postponing Essential Expenses

As bizarre as it may sound, one of the common reasons for overspending is… not having money. When you’re hit with a financial problem and cannot cover it, your first instinct is to ignore it. Sure, I should probably see a doctor, but maybe it’s nothing? Sure my car is making weird noises, but it’s still going, so maybe it’s nothing?

In reality, problems like that won’t go away on their own – they will just escalate and cost you more down the line. So if you don’t wish to overspend on an emergency, you should 1) set up an emergency fund as mentioned before; 2) handle the problem immediately, even if you have to get a loan in the process.

get money with payday loan

A Possible Solution for Emergency Money: Payday Loans

A payday loan could be a solution if you’re facing an emergency and don’t have the money to handle it.

A Mississippi payday loan is:

  1. accessible for most people;
  2. hard to abuse and over-borrow as it’s only a few hundred dollars;
  3. fast

Your credit history doesn’t influence your eligibility, so you can freely apply even if your credit score is bad – or outright nonexistent.

Mississippi Title Loans Inc. specifically will accommodate any sort of income and set you up with a comfortable payoff schedule – just make sure to ask the loan representative you’ll be working with about your options.

How Do I Apply For A Payday Loan?

Here are the steps for how you can get a payday loan fast.

  1. Go to the Mississippi Title Loans and fill out the online form.
  2. Wait for the loan representative from the nearest location to contact you and set up a meeting.
  3. Bring your ID; social security card, your most recent pay stub, 30-day bank statement and a blank check from an active checking account in your name to the meeting.
  4. Have the loan representative assess everything and determine if you qualify for the loan.
  5. Get approved and get the cash the same day.