Overspending Saving Money Living on a Budget

Overspending is a common occurrence in a lot of households. Spending too much money on ourselves or even others can cause big financial problems in the long run. The following are some of the causes of overspending:


Society, television, celebrities, and commercials portray the message that we as individuals should always have the very best and latest products or fashions.  Name brand clothes, name brand jewelry, name brand shoes and designer handbags are being advertised all around us. For some reason, most of society has come to believe that they need and deserve the very nicest clothes and things. This is a common untruth that people believe that causes them  to overspend. 

-Parents Not Teaching Their Own Children Proper Spending Habits-

As a parent, it is your responsibility to grow and nurture your child, not to spoil him or her. A lot of parents think that their children need to have hundreds of different toys, when in reality they do not need that many. Take a look at the children of the past…the early 1900’s for example. Children back then rarely had more than 1 or 2 toys, and they were perfectly content with that. Today, however, parents are showering their children with a bunch of toys that they may pick up once and never even play with again! This is a waste of money. Trying to spoil their children is something that contributes to overspending among a lot of parents.

-Knowing The Difference Between Wants and Needs-

A lot of people do not quite understand the difference between a ‘want’ and an actual ‘need’. A need is something you cannot live without, literally. Food, for example, is a basic need. A want is something that you think you need, but in actuality, you probably do not. The very latest cell phone with all the cool ‘aps’ is probably something you just really want and think that you need. People have survived for thousands of years without computers, cell phones, and electronics at all. So why do we as a society think we have to have to very latest and best gadgets as soon as they come out? Not knowing the difference between what you absolutely have to have and what you absolutely just want is another factor contributing to overspending in society today.

-Not Using a Budget-

A budget is perhaps the best way to manage and keep track of how much you spend each month. Following a budget keeps you accountable, and will help you to think before you overspend. A lot of people do not follow or even have a budget, and this contributes to a lot of overspending.

-Impulse Buying-

Sometimes our eyes are bigger than our pocketbook! Just because you see it, does not mean that you have to buy it that very moment. When you buy impulsively without first thinking it through financially, you are more likely to overspend. If you really think you need it, why not save up for it?  People trying to spend beyond what they make so that they can have something immediately is a factor in overspending.

As you can tell, there are a lot of reasons that people overspend. Perhaps we as a society could all benefit from a little self-control when it comes to money.