*This is a collaborative post
Overspending is an impulsive decision that many make despite knowing that it’s probably not a good idea and will cause financial issues in the long run. In 2025, everything is becoming increasingly digitalised, causing overspending to occur due to a variety of reasons, ranging from contemporary temptations to poor financial decisions.
If you constantly find yourself succumbing to these habits and spending more than you earn, it might be a good idea to take a step back and introspect. Essentials like utilities and groceries need to be accounted for every month, but there’s a lot more that we spend our money on that we don’t really need to.
Fortunately, there are several psychological and practical ways of shutting down these tendencies of overspending and, in turn, living a more financially secure life. In this article, we’ll be taking a look at 6 ways to learn how to manage your money better and curb those overspending habits.
1. Evaluate Your Spending
Once you feel like you’ve been overspending lately, make a list of all the things that you pay for monthly apart from essentials. This list should include monthly subscriptions, such as streaming services, gym memberships, and leisure activities such as dining out, clubbing, or even vacationing.
When you have a clear picture in mind and know for a fact that your spending habits haven’t been good, ask yourself these questions:
• Have I been hitting the gym that frequently?
• Do I use this streaming service that much anymore?
• Can I not cook my own meals on the weekends?
If the answers to any questions like these turn out to be a resounding yes, you should try to cut costs on the respective expenses in the next month. These changes would have a minimal impact on your lifestyle, since you don’t utilise them as much as you normally should anyway.
2. Don’t Get Peer Pressured
Think of temptations like Schrödinger's cat; they don’t exist until you pay attention and observe them closely. We understand that this is easier said than done, but there are definitive ways to prevent impulsive purchases and keep your spending in check.
A good start would be to block off all notifications from food delivery apps, online marketplaces, and subscription services. It is easy to get lured into something when it’s in your face at all times, especially when there are limited-time offers and discounts on your favourite things.
If you do, however, get lured into the hype of a pop culture item that you heard about from your friend, sleep on it for 48 hours. Set aside the money that you need for the item and see how you feel about the purchase 2 days later. If the temptation persists, you have the money for it set aside; and if it doesn’t, then you just saved yourself from needless spending!
3. Look for Cheaper Alternatives
Overspending isn’t always about your tendency to purchase things that you don’t need. Often, there are other, more affordable options for an essential product or service that you may have ignored that cost you extra. Take the time to research and compare all options before jumping the gun on a purchase to optimise your finances.
4. Limit Your Credit Usage
Due to how accessible credit cards have become in 2025, you can easily be deceived into thinking that you’re handling your finances cautiously. However, your credit numbers can accumulate quickly and leave you with a larger debt than you anticipated.
Set a strict limit on your credit card usage by keeping an alert on your phone for when you exceed those limits.
5. Find a Free Hobby
You can reduce how much you’re spending on leisure activities when you don’t have any free time to begin with. Activities like running, reading, or even learning a new language aren’t just healthy for your body and mind, they’re healthy for your wallet as well.
Free hobbies can be just as fulfilling as paid leisure activities when you’re able to find one that aligns with your interests and skills. These activities allow you to engage your mind, stay active, and feel accomplished.
6. Make it a Challenge
Let’s say that you want to watch a critically acclaimed movie that came out recently in theatres, but you’re running low on funds. Instead of spending money on the film tickets and snacks now, wait for your next payday, and in the meantime, challenge yourself to do something equally creative.
Read a book or watch a free documentary related to the same topic instead to satiate your temptations for the time being. Undoubtedly, this requires a lot of discipline, but when you finally watch the film without having to worry about your finances, it’ll feel very rewarding and far more enjoyable.
To Sum Up
It’s easy to not realise that you’ve been overspending until the reality check hits your bank account. That being said, these overspending habits can fortunately be cut off severely by incorporating slightly more disciplined habits and creativity in your day-to-day life.
The key to getting better at managing your finances is consistency, patience, and making active efforts to ensure that you’re on the right path to achieving all your financial goals. When you’ve finally broken free from the toxic cycle of overspending, you’ll not only avoid the stress of financial burden but also create a more secure and fulfilling financial future.
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