Three Tips to Curb Overspending

Thanks to credit cards and debit cards, it's effortless to shop and make purchases without even stepping out of your house. This, coupled with the fact that there are about seventy online shopping platforms in India, makes it possible for you to shop for all your needs in just a few clicks. All you need to do is select your purchase, add it to your shopping cart, and make your payment. Unfortunately, the convenience and ease of online shopping also bring with it the danger of overspending. Even though it doesn’t feel like a big deal at the moment, it has serious consequences. You may not have enough money to pay for actual bill payments later. If you have loans that you're paying off, overspending will make it harder for you to clear your debt. You also won't be able to save much every month. Reducing your overspending is the best way to turn your finances around and save more. Here are three tips to help you minimize overspending:

1. Spend Less Than You Earn

This tip will nip all possibilities of overspending in the bud. If you spend less than you earn, then you automatically won’t make unnecessary purchases. Remember – the operative word here is less. If you spend exactly what you earn, you may not overspend, but you'll not have any savings for emergencies either. If you spend more than what you make, you'll most definitely get into debt sooner or later. Think about it – if you have excellent credit, several online lenders can give you quick and easy loans today. You may not need to get the latest iPhone, but you sign up for it anyway on an EMI plan because it’s convenient. And just like that, you’re spending money you could’ve saved. Spending less than you earn will curb overspending, help you save money, and avoid debt.

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2. Track Your Expenses

Do you know what the worst consequence of not tracking your expenses is? You have no idea where your money's going or how much you already have. Those who don't plan their finances live with the dangerous assumption that money is there in their bank accounts at any given point in time. That's simply not true, and you'll learn it the hard way when you're hit with an unforeseen expense. Or, you exhaust your salary by the month-end because you just didn't realize how much money you blew buying things you don't need. Tracking your expenses diligently will help you avoid a month-end cash crunch every month (tell me that doesn’t sound amazing) while also leaving you with savings to tackle unplanned expenses. You’ll also have a better grasp of your monthly bill payments.

3. Don't Give in to Societal Pressure.

Keeping up with your friends are doing or subscribing to stereotypical societal expectations is exhausting and entirely unnecessary. But we get it. We live in a very consumer-oriented world, where giant corporations continuously push us to buy things we don't need. Amid this, it can get very tough to not follow in our friends'/colleagues' footsteps and buy the latest gadgets/car just because they did. If you value your peace of mind, you have to learn to say "no" and do what you want, not what’s expected of you. Comparing your wealth and experiences with those of your friends/colleagues will get you nowhere. Instead, focus on what you want to do for yourself, and try saving some money while you’re at it.

Related Blog- 4 Proven Habits for Financial Stability

Wrap Up

Spending less than you earn will help you cut down on overspending. This will help you avoid credit card debt, increase your savings, and sleep well at night. But there are sure to be times when you don’t have enough funds for emergencies despite your best efforts. If you need quick and easy loans, KreditBee is a good platform you can consider. It’s India's leading personal loan platform that offers quick loans online. To get more information on how you can get a quick loan now, email us at [email protected], and we will take it from there.

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