Overspending every now and then may be a fact of life, but recognizing the issue and working to correct it is a must.
Whether due to unexpected expenses or just an abundance of splurging, overspending can wreak havoc on your financial stability.
So, if it’s time you gave yourself a fiscal intervention, here are three quick tips for turning things around and getting back on track:
Review and adjust your budget
If you catch your savings dwindling and credit card balance rising, there’s a good chance that it’s time you take another look at your budget. In fact, this could be a great opportunity to see exactly where your overspending is happening and ultimately draw up an entirely new budget. For example, if you notice one specific location or activity you’re spending a lot on (e.g. morning lattes at Starbucks), you may want to actually make that its own category. That way you’ll be able to monitor your problem area closely and prevent it from spoiling a broader budget category
Add some accountability
Just because you have a new budget in place doesn’t always mean you’ll stick to it. That’s where having some accountability comes in handy. In addition to using a smartphone app like Mint that will help you track your spending and alert you when you’re reaching your limit, it can also be helpful to have a “budget buddy.” This can really be anyone you trust to follow-up with you and ensure you’re staying on the fiscal straight and narrow. If needed, you can return the favor by helping keep their spending in check as well. As they say, financial teamwork makes the dream work.
Seek more frugal activities
One of the biggest reasons people blow their budget is that they simply get bored. Unfortunately, finding entertainment often means spending money. That said, there are a number of fun yet frugal activities you can participate in. From heading out to free local events to spending evenings in watching Netflix with a loved one (your budget buddy perhaps?), there are ways to have a life without it costing you cash.
Overspending every now and then may be a fact of life, but recognizing the issue and working to correct it is a must. By taking a closer look at your budget, adding some accountability (be it via an app or actual person), and pursuing frugal alternatives for entertainment, you can help curb overspending and keep your finances heading the right way.
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.