Ways to stop overspending

gboyinwa ajomale

February 21, 2018 11:12 AM

Here are ways to stop overspending.

Overspending can leave you broke. You need to find ways to stop overspending.

Sometimes you spend without knowing you have spent so much. This could leave you in a bad financial state.

1. Check your financial status

After overspending, the first thing is to check your financial status. You should know how much you overspent.

Checking your financial status would give you an idea how much is left of your income and also an idea of other bills and expenses you need to sort before the month ends.

It helps to know if your remaining income can cover it all.

2. Review and adjust your budget

You would need to review and adjust your budget after overspending if you always have an overspending issue, to avoid such situations in the future.

You will need to carefully take your time to review your monthly budget and find ways you can adjust it. If you always have the issue of overspending.

ALSO READ: How to track your expenses

Look for categories in your budget you tend to overspend more and try re-adjusting and cutting down on your expenses on them.

3. Create and use an emergency fund

This is why it is important to have an emergency fund. Though overspending is not an emergency, it can help you after overspending, which is better than going into debt.

You shouldn’t always resort to your emergency fund at first, it should be your last resort when there is no other option for you, but you need to make sure you build up your emergency fund again.

Also note that after overspending, don’t think your emergency fund will help you out. This mindset won’t help your emergency fund.

4. Take money from other categories

Cover for you overspending by taking money from other categories you can do without to other important categories you will definitely need to sustain yourself throughout the month.

ALSO READ: Possible signs you don't earn enough cash

Do this by checking your budget for categories you can always do without and add them to the important categories in your budget.

5. Create a simple bare-bones budget

If you still have an issue adjusting after you have overspent, then you might need to create a bare-bones budget for the rest of the month.

This would help limit your expenses asides your basic needs and also helping you save more on other expenses.

It might look like a hard way of survival but you need it to cover your overspending.

gboyinwa ajomale