Have you ever had a situation where you have bought the same dress twice? I know I have.
As strange as that may seem it does happen to people that have a habit of overspending quite a lot.
You see there are some very easy to spot telltale signs of overspending that you must always be on the lookout for.
Overspending is a huge problem in a lot of families and its not only those that buy the same dress twice that have this problem!
There are actually many other overspending money signs that we will go over in a moment.
To begin with, it’s important to recognize that your overspending is a problem.
It’s a problem for you and it’s a problem for your family too.
It’s not until you can fully admit this that you will be able to do something about it.
For years I neglected to admit that I had a problem with overspending. I would buy clothes all the time and then say I didn’t have anything to wear.
I truly believed at the time that we just did not make enough money as a family to pay bills and it was nothing to do with me. Because of this, we suffered from having huge debts that only grew monthly.
So you see, if you want to get out and stay out of debt then you must acknowledge your overspending habits first.
It wasn’t until I faced my actual problem that things began to turn around.
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Here are 8 warning signs that you are overspending money:
1. You are constantly putting purchases on a credit card
Most families own a credit card and there isn’t exactly anything hugely unusual about that in this day and age.
What I would say about a credit card is that if you do have one make sure you know how to use it. Credit cards have different functions and if you don’t fully understand what your particular credit card does then it will only put you into debt faster than you can even realize.
You don’t want that.
Unless you know how to very cleverly use a credit card I would suggest you cut it up and find ways to pay off the balance as quickly as possible.
Credit cards are not there for you to put all of your everyday purchases onto it.
If you are doing this then it’s probably a very clear sign that you are living above your means and can’t actually afford what you are buying.
If you are unsure of the different functions that a credit card can do, you can take a look here.
2. You consistently go over budget or don’t even have one at all
Firstly if you don’t have a budget to begin with you are already on the wrong track.
It is impossible to know what is happening to your money if you have no way of being able to track it.
I love how Dave Ramsey says you have “too much month left at the end of the money.”
Just take a moment to digest that sentence because it is so true in a lot of homes.
For many years I would run out of money before the end of the month and found that I would have to borrow more and more in order to stay on top of bills and other such things.
Running out of money before the end of the month is a clear sign that somewhere along the line you are overspending money.
The only way to truly get past this is to set yourself up with a good budgeting system that addresses all your needs.
You can snag a copy of my budget worksheet here.
3. You shop to feel better
Let’s be real here, many of us fall into this trap.
Your weakness may not necessarily be clothes shopping but it might be something else like shopping for food.
Whichever it is, it is a problem.
Doing something because it makes you feel good is not going to be good for your pocket.
No good can come out of it.
You need to have discipline when it comes to spending money and many of us don’t have that which is why we find ourselves in the situation we are in.
That’s ok for now as long as you are willing to admit it and do something to change it.
It took me many years to be truthful to myself, as painful as it was I had to do it if I wanted to see a change.
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4. You cover up your purchases
Raise your hand if you are guilty of this one?
I hate to admit it but that was me. I would often hide my clothes shopping addiction from my husband.
I would buy the clothes whilst he was at work, pull the new tags off them and pretend that I had the item ages ago and had just not worn them yet.
If that is not a clear overspending money sign then I don’t know what is!
If you are doing the same thing as me then you need to make a change, today.
If it is something you feel that you have to hide from other people then its probably not something you are proud of.
This is a clear overspending money sign.
5. You have no savings
There should be no reason that you don’t have any savings in your bank account. Savings are an integral part of any budget.
If you have no savings it’s not a healthy sign and probably means that you are overspending money in another area.
You need to go back to and revisit your budget if you don’t have any savings safely tucked away somewhere.
6. The food in your fridge goes to waste often
Food wastage is a good sign that you are overspending on your grocery shop. I’m pretty sure that if you were to go over your grocery budget you would find areas that you could improve things.
Personally speaking, I prefer to do a big shop at the beginning of the month and then try to only go to the shop once a week after that to top up on smaller items.
I find the more times you go to the shop the more chances that you have to spend money unnecessarily.
Another good way to make sure you are not wasting money on groceries is to meal plan.
If you are interested in meal planning you can take a look at this.
7. You only pay the minimum on your debts
Paying back the bare minimum on your debts is the completely wrong way to go about paying off debts.
If you find that you are doing this then there is a very good chance that you are using your money in the wrong way and overspending in other areas that you shouldn’t be.
If you have a loan and are only paying the minimum then you are probably paying interest on that loan too.
The longer you have a loan for the longer you will be paying interest too.
It’s in your own best interest to pay back loans and credit cards as quickly as possible.
8. If you had an emergency situation tomorrow it would put you into debt?
This for me is a really important question to ask yourself honestly.
If an emergency financial situation were to pop up tomorrow, would you be able to handle it without going further into debt?
If your answer is yes, then that’s brilliant and you should give yourself a big pat on the back.
However, if your answer is no then you need to think about why and what you can do to change that.
You perhaps need to think about starting an emergency fund to help you in these types of situation.
Final thoughts on overspending money signs
If you find that you are running out of money before the end of the month then perhaps it is time to admit that either you are overspending or that maybe you need to find a way to make some extra income to make up for the shortfall.
That might not be what you want to hear right now but it is the truth that you NEED to hear.
It will be short term pain for long term gain once you clear your debts and get your budget back on track.
The other thing you need to do is you need to be able to distinguish between a need and a want.
Knowing the difference between these 2 things can be the difference between having debt and having no debt.
A need is something like food or shelter. A want is a new tv or a takeaway.
Once you understand the difference you can really be able to make the changes you need to in order to manage your money.
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