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Overspending: Why we do it, and how to avoid it

Key takeaways:

  • Instead of buying, borrow rarely used items through community sharing programs to save money and promote sustainability.
  • Reduce impulsive spending by deleting saved payment information, unsubscribing from retailer alerts, and practicing a “purchase pause.”
  • Create a budget and use tools like prepaid debit cards to manage spending while teaming up with a “budget buddy” who encourages frugal choices.

You’ve probably been there more than once: staring at a bank statement or a pile of receipts, wondering where all your hard-earned money went. Maybe it was a big-ticket purchase or a series of small expenses that quietly added up. Either way, chronic overspending can leave you feeling stressed when bills come due. But what if you could break this cycle by making a few simple changes?

Read on to discover five practical tips to keep more money in your wallet — all in the time it takes to stream your favorite song.

1. Add shopping speed bumps.

One-click shopping promotes overspending since it often leaves little time to reflect on the financial implications of the transaction. By removing stored payment information from online retail accounts, you intentionally add friction to your shopping experience. The inconvenience of having to manually input your card details to complete the transaction serves as a mental speed bump, giving you time to consider whether you really need to buy the item in your online shopping cart.

*Take action*

Delete saved payment methods and unsubscribe from retailer alerts to curb impulsive buying.

2. Find a budget buddy.

Social pressure often leads to overspending. The desire for peer acceptance and belonging is real. But, a like-minded friend can help you stay accountable to your money goals. Your “budget buddy” can encourage you (and your social network) to choose lower-cost entertainment and restaurant options.

*Take action*

Team up with a friend who shares your goals so you can support each other in making wiser financial decisions.

3. Pause before you purchase.

A “purchase pause” involves noting your shopping urges before acting on them by creating space between desire and purchase. Give yourself at least 24 hours before making a final purchase decision. Keep a record of potential purchases and your emotional state in a note-taking app or journal to identify spending triggers. This will likely reveal which items truly matter versus those that are fleeting wants or driven by lifestyle creep. This technique helps break the cycle of impulse buying by revealing how many must-have items lose their appeal once the initial urge passes.

*Take action*

Maintain a purchase log to track shopping impulses and emotions, allowing you to identify spending triggers.

4. Borrow, don’t buy.

Instead of purchasing things you’ll seldom use, consider borrowing them through sharing networks and community programs. The growing availability of lending libraries, swap groups, and platforms like the Buy Nothing Project makes it easy to temporarily access everything from power tools to party supplies without the financial burden or responsibilities of ownership. This approach saves money, helps reduce clutter, and promotes sustainable consumption within your community.

*Take action*

Check out your local library’s “library of things” and join neighborhood Facebook swap groups to borrow items you rarely use instead of buying them.

5. Be mindful of money.

Reining in spending without a budget is like trying to determine the winner of a baseball game without keeping score — all you can do is guess. Even a basic budget can make a significant difference. Tracking income and expenses lets you gain a clearer picture of where your money is going.

*Take action*

Create a budget and consider using tools like prepaid debit cards to control your spending.


And if you don’t like tracking your expenditures against your budget, there’s an easier way to ensure you don’t overspend. Load your spending money onto a prepaid debit card, like Commerce Bank’s mySpending Card®. Once the money on the card is depleted, you’re done spending until the next month, your next paycheck, or however you prefer to budget.

It never hurts to have a little help in the willpower department. Remember, the more you stay aware of potential pitfalls, the better equipped you’ll be to avoid overspending.

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