Last Updated on May 20, 2021 by Melissa S.
It’s obvious, but if you want to get control of your finances and finally organise your money, you need to ensure that you aren’t spending too much each month. The thing is, a lot of us, especially if we’re new to really caring for our finances, simply don’t know when we’re spending more than we should or more than we really need to.
With that in mind, and to help you get your finances back on track, here are some tell-tale signs that you may be spending too much money right now:
- You don’t have a budget
Okay, so it’s not always the case, but if you don’t have a budget, there is a very high chance that you are spending more than you need to. When you have a budget, you know exactly how much is going in and coming out of your bank account, which makes it easier for you to keep track and cut back where necessary, whether by using a company like Switch My Energy to cut your utility bills or by giving up that daily coffee takeout.
If you don’t have a budget, get one fast.
- You buy whatever you like
If you buy whatever takes your fancy without even giving it a second thought, you’re probably spending too much money. If you want to fix your finances and save money, you need to consider all of your purchases very carefully and give up impulse spending. Everything you buy should be carefully considered, budgeted for and affordable within your budget. If it is not, you may need to cut back.
If you struggle with impulse spending, the 30-day no spend rule may help you get in control. Give it a try and see how you do.
- You have nothing left at the end of the month
If you’re living from paycheck to paycheck, it could just be a sign that you aren’t being paid enough to cover the basic cost of living, but it could also be a sign that you’re spending too much money, and chances are you will have a good idea which is the case.
Ideally, no one should live paycheck to paycheck as it leaves you vulnerable to getting into debt when a financial emergency comes along, and it means you can’t always do what you want to do due to financial constraints, so anything you can do to keep a bit more in the bank each month is a good idea.
- You’re in major debt
A small amount of debt may be manageable, but if you’re thousands of pounds in debt, have no savings and a negative net worth, you’re clearly spending too much money and talking to a debt adviser may be a good idea, as will putting into place a new financial regime which sees you spending less and using the difference to pay down your debts.
Spotted any of these tell-tale signs in your own life? It may be time to give your finances an overhaul!