Overspending is defined as unwarranted expenditures where someone spends more of their money than they actually have or can reasonably afford.
With that said, it’s time to go against the grain; Don’t follow the masses into tremendous debt. Trust me, it can be difficult when you see everyone around you buying new stuff every other day. But just remember, Thou Shall Not Covet! You can survive using basic common sense.
7 Tips to Handle Overspending
1st of all, we must address the temptation of the covetous envy within us!
Robert Kiyosaki’s book “Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!” talks about “Minding your own business… literally.” You should be focused on solving your own financial problems and creating your own success that you don’t even have time to compare yourself or be jealous of others!
Furthermore, people waste so much time comparing themselves to others, wishing they had the same things. If you struggle with this, it’s time to wake-up and smell the opportunity. To be successful, you need to ACT and stop wasting time and money trying to be like other people.
There’s a reason why “Thou shall not covet” made it into God’s Ten Commandments. Coveting has a terrible effect on your life personally and how you view life in general. So take note: you’re wasting time and energy comparing yourself to others.
2nd: You need to face the truth up front. When you are tempted to make that purchase, be honest with yourself, do you need it? Is this purchase going to benefit you?
If not, it’s probably hurting you. You know your money is probably well-spent, or well-saved, well-invested, or better yet, well-given elsewhere! So build up some self-discipline and start putting your hard earned dollars where they belong, because the more you overspend, the more you’re filling up other people’s pockets, not your own.
Address the issue in your life and take action on solving it!
3rd: Creating a budget is important, but it is even more important to ACT on it.
If you don’t tell your money where to go, you’re probably going to find yourself guilty of overspending. Period. You need to be intentional, deliberate, certain, and in control of where you’re sending your money! This is why budgets exist; to keep track of money, see where it’s going / where it needs to be, and plan on sending it there!
But you need to actually do it, not just write it all out.
It’s like, “you can talk the talk, but can’t walk the walk.” People are pretty good at talking and sounding good, but they’re not good at actually practicing what they preach. Quite frankly, if you care about your family’s financial future, you would budget.
If you want more good stuff on budgeting and really want to get disciplined at it, read this book:Budgeting: How to Make a Budget and Manage Your Money and Personal Finances Like a Pro (Budgeting, Money Management, Personal Finance, Planning Guide)
4th: When tempted to overspend, think about where you want to be financially and remind yourself that overspending will NOT get you there.
This is about goal setting and dreaming big. A lot of times we think our dreams are way out of reach, but they’re really not if you put the work in and discipline yourself.
I read the book, “Think Big, Act Small: How America’s Best Performing Companies Keep the Start-up Spirit Alive“ in one of my grad classes and it completely changed my perspective on this idea of goal setting and achieving. It allowed me to think in a completely new way, where I usually always feel like I am winning.
However, if you stink at goal setting and getting motivated, you need to read Grant Cardone’s book, “The 10X Rule: The Only Difference Between Success and Failure“ then go back to Think Big Act Small. I know I keep talking about it in my posts, but it will get you so pumped up in life. You’ve got to think about your end game and where you want to be! This will give you the motivation and the drive to keep going even in the little things…
like fighting the urge to buy that Starbucks Latte and settling for a regular coffee…
5th: Get some accountability.
Mentors are important, not just in your personal life, but also in your financial life. If you’re married, you and your spouse need to get on the same page with correcting bad habits of overspending. If you want to cultivate and harvest a life of financial freedom, you’ve got to get things under control.
However, be careful who you select to be your mentor. Are you going to ask someone who is buried in debt, failing to pay their bills, OR, someone who is financially stable and clearly on a good path with a good mindset?
Let your search begin…
6th: Learn to live with less.
People who intentionally live on less usually have a greater appreciation for the things they do have and for life in general… interesting correlation. Nonetheless, the dollars you waste on overpriced junk are dollars that could be working for you to increase your income… or be given to your church or charity… or the future security of yourself and your family… Know the opportunity cost.
Once you develop good habits, you’re eyes will be opened to seeing what is necessity and what is simply envy. Soon enough, you’re habits will restructure your life away from overspending.
7th: Realize that overspending is actually irresponsible.
If you go back to the idea of financial stewardship for a second, you’ll realize that overspending is the action of compromising that stewardship and disregarding it.
Your kids and those who look up to you learn from everything you do, including your spending habits. If you want to instill good habits in them and take care of them, it’s best they see good principles lived out in you. Take heart, be responsible, and take care of your family and those who look up to you by emulating self-discipline, self-control, and great financial habits.
As my high school soccer coach always said, “Success finds a way, failure finds an excuse.”
I hope that you can use these 7 tips to get a handle on your spending habits or help others get a grip on theirs!
In case you missed it, check out my post on the 7 Basic Rules of Successful Money Management
Let me know what you think by commenting below with how you deal with the temptation to overspend or.. really anything! Be sure to Subscribe, Like and Share!
Cheers & God Bless,
DISCLAIMER: The opinions, analysis and statements presented in this article and on this site are solely my opinion (based on my own research), not affiliated with any past, present or future employment or business affiliation. This post contains affiliate links of the products that I recommend, which means if you purchase products through the link, I’ll receive a small commission. This helps support the blog and the time and effort put into it. Thank you for the support!!