Top 10 Signs You are Spending Too Much Money

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Hi there! I am a freelance writer who lives and breaths content on a daily basis. I consider myself to be a living paradox. An old soul trapped in a modern world. A self-proclaimed hopeless romantic and a professional over-thinker. I can't start anything unless I have my coffee. Writing has been and always will be my way of calming the storms in my heart and mind.

Whether you are earning more than enough or earning just right, money is always the first motivation why people work. You may spend it for your basic needs or extravagant wants, but the simple truth is that you earn money to make a living and to make a life. Sometimes, however, we may get a little carried away with our spending. It could be peer pressure or simply for pleasure, but not managing your expenses could cost you – literally and metaphorically. Here are the top 10 signs you are spending too much.

1. You are always over budget

Budgeting expenses is a simple chore many of us do. We list down our basic needs and set aside money for these, the rest of our salary is for us to make use of. Some will save money in their bank accounts. Some would spend it on “wants”. It’s cool as long as you don’t spend it all.

But if you are always going over your budget, it’s a hint that you are spending way too much and you need to reassess.

2. Your bank account is just on its minimum

You might feel responsible and confident that you have your own bank account, but if certain bank account only contains the minimum, there’s not much it can do for you. Banks may have interests but we all know they are not that big.

You’re still the main contributor to your savings and if you find it hard to do so, then you are spending way too much.

3. You have items in your closet you have never even used.

We’re all guilty of that one time when we bought something on an impulse just because it looked shining and shimmering. It’s fine. It’s normal. What’s not normal is for it to be a regular routine and you have clothes, shoes or accessories in your closet that you have never even used.

You just bought them because you thought they looked good at the time. That’s basically a waste of money.

4. Your bills are starting to pile up…

Nothing wrong with staying up to date with all the gadgets and subscriptions to all trending stuff, but only if you can afford them. You need to list down your priorities like electric, water, and internet bills.

The rest can take a backseat because keeping up with all of them can surely pile up your bills.

5. …and you can hardly make ends meet

This is what you would want to avoid, why you should list down your priorities and the things that you need the most. Do you really need that monthly subscription to that magazine hard copy when you can just read it online? You should assess stuff like that.

If you can hardly make ends meet but you’re living with too many “wants”, then yes you are spending too much.

6. There’s always that “urge” to buy stuff…

We call it to impulse purchase and buying things urged by emotions. Some people turn to shop to ease their stress or problems. If it is an effective way to ease your stress, by all means, do.

However, if it becomes a habit and you feel the urge to buy even with little emotional stress, then you will be spending way too much

7. …and it turns out, you don’t need it

As we said, you buy things based on impulse and emotions that you don’t think it through if you really need these things or not.

By the time you get home, you realize you don’t need them at the moment and throw the items into the “future use” basket, which never really gets used.

8. You pay only the minimum balance on your credit card.

You use up a huge chunk on your credit card for items you don’t need and then pay only the minimum due plus interest.

The result would be piled up envelopes of credit card dues and you playing a game of rolling your payments every month. See numbers 6 and 7.

9. You have a lot of credit cards

Seriously, how many credit cards does a person need? What would you need 4 or 5 credit cards for? It should be for emergency use only. Everybody knows that.

Unfortunately, not everybody follows that rule and the credit card companies pounce at every waiting soul. Thus, the world of consumerism continues.

10. You bought that nice handbag even though you have 30 more at home.

The top sign of knowing you are spending too much? Buying stuff you already have at home. Like a handbag or a pair of shoes that you have in your closet, only on a different color.

Unless it’s absolutely necessary, avoid buying stuff you already have.

All those “seize the day” and “YOLO” motivations you hear all the time are quite inspiring, but it should not blind you of the real thing – which is saving for your future needs. It’s nice to indulge once in a while. Just make sure that you still think practically. It is for your best interest.

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