Bad habits are hard to kick. Overspending is one that can lead to serious short- and long-term financial consequences. Spending beyond your means may result in:
Credit card debt
Missed financial opportunities, like buying a home
Heightened levels of financial stress and anxiety
How to get your overspending under control
1. Review your current spending habits
You may recognize you’ve been overspending but do not fully grasp by how much or where that money is going. It’s crucial to look at your transaction history from month to month to gain a clearer picture. This can take time, but tools like Money Management make it easy! Connect your financial accounts in minutes and you’ll have access to a visual breakdown of your spending by category.
2. Set spend limits
Using a debit card for purchases means you won’t spend money you don’t have. But you can take this even further by setting up spending limits on your debit card. This feature is available at select financial institutions and will ensure transactions won’t go through if they’re over a certain dollar amount. While these preferences aren’t set in stone and can be changed, Card Controls are an opportunity for you to practice self-discipline.
3. Save with a certificate
You may have some money left over after all your bills are paid. Instead of spending these funds on things you don’t need, consider placing them in a certificate. Opened with an initial deposit, these savings vehicles allow you to earn at a fixed rate for a predetermined amount of time. Term lengths range from a few months to a few years, depending on your needs. You must keep the funds in the certificate until the term ends, making it a structured, hands-off way to save.