7 easy steps to control over-spending

There are many factors that can lead to overspending, and knowing your triggers will help you to overcome them. (Representational image)

Every now and then, we tend to overspend and the reasons are many. It can be a long weekend, a treat for friends or colleagues, celebrating a special occasion, or simply impulse spending. Moreover, winter is a time when we tend to indulge in a lot of binge eating and drinking. It is easy to get caught up in the excitement of the season and spend more money than we should. This happens to almost everyone and there is no point stressing over it.

With the Diwali and Christmas seasons, as well as the year-end holidays behind us, it’s time to get serious about our daily expenses. The new year has just started, and we need to ensure we end up with more money in our kitty than we had at the end of 2022.

You can always check on your expenditure and save some funds in the next quarter, to enjoy the rest of the year ahead. Here are seven simple steps to control your spending.

Create a budget and stick to it

Like many people, you may find yourself spending a little more than you had planned and you end up drying your account. Maybe you went out on a few social outings and ended up spending more than you intended. Or you came across a tempting item on an online selling portal and couldn’t resist buying it.

Whatever the case, it’s important to remember to stick to your budget and not go overboard. This may seem like a no-brainer, but many of us forget to set a budget. Creating a budget will help you stay accountable and will prevent you from spending more than you should.

Always shop in your free time

It is important to shop only when you are mentally relieved and free to take the right financial decisions.

If something else is keeping you occupied, assign that task to someone else and then go out to shop, whether you have to buy home supplies, clothes, or anything else. This will help free up your time, and your mind, so that you can spend wisely.

Begin saving if you haven’t already cultivated the habit

One of the best ways to overcome overspending is to save.

Pro tip: Open a new bank account, and transfer some money into that account every month. Make sure to not have access to the new account’s debit card or net banking. Also, don’t connect that account with any UPI apps.

It is like moving some money out of sight, every month. An important thing to do with the new account is to convert it into a “sweep” or "Autosweep" account rather than a regular savings account to earn higher interest. This type of account transfers amounts over or below a certain level into a higher interest-earning investment option like a fixed deposit or a bond. However, you would have to convince your banker to extend you this option, as the banks do not openly advertise this option. You can earn more interest on your money in the bank and can save more.

Shop smart

Don’t overspend on convenience items. Instead, try to shop for groceries and other necessities at discount stores or buy them in bulk. You can compare the pricing of regularly ordered items on various apps before ordering them.

List out which app is running free delivery or a weekend sale. Remember: money saved is money earned.

Be transparent about your financial situation

There’s no need to feel embarrassed or ashamed about your spending habits after the holidays. There are plenty of people out there who overspend just as much as you do.

Be transparent about your financial situation with your loved ones. Let them know exactly how much you have and don’t try to hide anything. This will help your loved ones to be more understanding and less likely to pressure you into spending more money than you can afford.

Get rid of unwanted shopping apps

One thing to do with your mobile is to stop checking shopping apps time and again. Start by deactivating the notifications for these apps. If that doesn’t help, simply uninstall the apps for some time. Or, better still, forever. The more you visit these apps, the more you will be tempted to shop for things you probably do not need. Commit to yourself that you will not visit these apps at least for a month. Also, be cautious while browsing your social media as a lot of shopping apps position their ads according to your browsing pattern.

Understand your triggers for overspending

Why do you overspend? Does shopping ease your stress? Does it help to ease your anxiety levels?

There are many factors that can lead to overspending, and knowing your triggers will help you to overcome them. Overspending can be a way of self-medicating for some.

But overspending isn’t healthy, and it eventually has to stop. There are many ways to deal with stress, and overspending isn’t one of them. It can be tempting to overspend, but it is best to resist the urge.