Tips on Making Sure you do not Overspend

It can be really easy to spend more money than we have these days. This is because it is so easy to borrow money, especially with lenders like in the market and there are so many things available to spend money on. It used to be that only food, electricity and basic clothing and homewares were necessary to buy, but these days there are so many things which we like to have in order to make our lives fun that we spend lots of money on entertainment, luxury foods, clothing and accessories, travel and holidays, electronics and making our homes luxurious. This means that spending is so much higher and it can be much harder not to overspend.

Often we can overspend without really realising it. We buy a few things and then suddenly we do not have enough money left to cover the essentials or we find that we are overdrawn. It is so easy to get into debt, particularly with an overdraft or credit card, but it is wise to make sure that you do not do this. This is because it can be very expensive.

It is wise to keep a constant check on your bank balance. This will ensure that you know what money you have left and it can help you to manage your spending. However, you also need to be aware of what bills are due to go out and when so that you leave enough money to cover them. It can be easier to set them up so that they all go out just after you are paid so you can then easily see how much money is left. You will also need to know how much you spend on other things such as travel and food and whether there are any other purchases you are likely to need to make until you are next paid. If you are not sure, then looking back over previous bank statements should help you.

Having some money in reserve is always a good idea as well. This means that if you do spend more than you have, then you have some money to use, rather than having to borrow. If you can just try to put away a little bit each month, then you could start to build up a fund which will help you when you most need it.

You may wonder how you can possibly manage not to overspend let alone to save some money if you struggle each month. However, it should be possible if you are careful. It can be particularly hard if you do not have a regular income, perhaps due to being self-employed or on a zero hours contract, but you will still be able to have a go. Make yourself aware of all of the money that you need each month and this will help you to know what you will need to earn in order to cover those basics. You can then see whether you can find extra work or try something different to get some extra money. You might be able to earn more by doing some freelance work, some temping or contracting or earning money online. You could also see whether you can lower your bills by switching suppliers, changing to cheaper brands or downsizing to a smaller home that is cheaper to run.

It is wise to also think about your debit and credit cards. Sometimes spending on these can make it more difficult to budget. It is easy to use them to buy things and not think about how much it is. This can lead to you going overdrawn or for you to have a high credit card bill which you cannot pay back easily. If you do not a credit card bill in full, you get charged interest and this can really add up. It is also hard to see how much it is costing as the minimum payment will cover the cost of the interest and so you cannot see it building up, especially if you continue to spend on the card and the amount owed is going up anyway. Some people also see a credit card as a chunk of money that is theirs to spend and do not consider the cost and the fact that it needs to be repaid. If this is a problem with you, then it could be worth considering no longer using cards.