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Many Australians are chronic over-spenders  

They start each month with a set plan, and by the end of it they have no idea what has happened. Trying to justify their bad spending habits with “a little won’t hurt” attitude, and then at the end of the month they have severe buyer’s remorse and possibly an empty savings account.


Here are 6 signs that you could be overspending


  1. You have more in your closet that in your bank account.  If you have a closet full of designer wear and no funds in the bank, you may need to readdress what you are spending your money on.
  2. Your expenses rise with your income.  Throughout the course of your life, you will probably receive rising income.  What are you doing with the extra if it’s not being saved?
  3. You splurge on fun stuff but you do not save for fixed bills and expenses.  Speaking for itself, this point is looking at your bills, paying them first then spending the balance on savings and yourself.
  4. Your credit card debt exceeds your monthly income.  If this sounds like you, you may want to consider reducing this as soon as you can then perhaps cancelling the card if you need too.
  5. Your credit card is maxed out.  Maxing out a credit card is bad for two reasons, it could mean that you are living beyond your means and overspending on things that you do not need.
  6. You are resistant to change.  Some people find that they get defensive when anyone ever mentions money or if you have related to any of the points ahead.  If this is happening to you, you might be an overspender.


And here are 6 steps to help prevent the overspending:


  1. Sleep on it. Many people do not know the value of “sleeping on it”. After a good night’s sleep, you will be able to see if it still of importance to you to own.
  2. Work out how much it costs based on your hourly rate.  Putting things into perspective this way is a good and simple way to keep track of what you are spending
  3. Focus on your debit and savings. Work out how much longer it will take to achieve your goals if you choose to spend these savings on something you may or may not need.
  4. Plan your meals. Planning meals is one of the easiest things to do when trying to budget.  You  could have a stirfry and have enough for leftovers. You could take sandwiches and work out how much per sandwich you are spending.  Buying food in bulk and planning is a sure way to save some $.
  5. Challenge yourself. Challenge yourself to sticking to the budget. Choose to do this each and every day.
  6. Kept a debt diary. Like a food diary, you can note down all the incomings and outgoings and learn to budget from this.


The one thing to also remember is that you are not going through this alone.  There are so many Australians out there that are in a similar position to you or have been at some point in their life.  The good part is, we can learn from their mistakes, as they are super innovative and have written books and created apps to assist with overspending and budgeting. Forbes online has created this handy list of budgeting tools and sites that can assist people just like you.