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4 Ways to Stop Overspending

Man using a credit card on the computer

It's easy to spend too much money these days. Constant sales, buy-now-pay-later options, and one-click shopping tempt us to buy more stuff than we need. Spending more than you can afford leads to debt, stress, and less financial freedom. You can avoid overspending by having more self-control and changing how you think about spending. Here are four effective tips:


  1. Know the Difference Between Wants and Needs: The main reason people overspend is they can't tell the difference between things they want and things they need. We often convince ourselves that every desire must be fulfilled right away. But the philosopher Seneca proclaimed, "It's not the person who has too little that is poor, but the one who wants more than they have." Honestly, look at each potential purchase - is it something you truly need that will improve your life?


2. Live With Intention: Instead of mindlessly buying things, live with more intention and purpose. Revisit your values, goals, and priorities regularly to ensure your spending matches what's truly important to you. Carl Richards stated, "Spending is a choice, not a requirement. Think about spending the same way you'd think through any big decision - carefully and aligned with your goals."


3. Delay Gratification: Our culture makes it hard to resist instantly getting what we want. However, forcing yourself to pause before buying unnecessary things can prevent impulsive spending. Whenever you want to buy something you don't need, make yourself wait - maybe 24 hours or a week. The urge to buy it may disappear once you've considered it.


4. Have a Spending Mantra: Having a saying or rule to guide your spending can help when you're tempted to splurge. Carl Richards suggests, "Have a philosophy that puts you in control, like 'I'm going to spend less because it leads to more freedom.'" Or follow Marcus Aurelius' advice: "Very little is needed for a happy life."


It takes work, but spending within your means reduces stress, helps you save more, and lets you use your money for your priorities. Combat overspending by changing your spending mindset and habits.


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