Overspending and How to Know When You’re Doing It: A Guide from Resolvly

At Resolvly, LLC, we understand that, in many cases, debt is a result of overspending. For many people, it can become easy to “rationalize” overspending in a way that makes it very difficult to identify. This is why we specialize in debt resolution and set our clients up for future success.

Overspending Is Often Psychological

Overspending means something very specific; it means going beyond your means, oftentimes because you’ve accidentally tricked yourself into believing a purchase is within your budget. This list examines the most common causes of overspending and how to avoid them.

1. The Belief That Material Items Will Change Your Life

This can be a tricky one. Everyone wants to improve themselves. And sometimes, that emotion is translated into purchases. For example: “If I buy a home gym, then I will be in better shape,” or “If I buy a brand new car, I’ll have a better reputation, and I’ll work harder.” In each of these cases, a key is missing: the person’s actual actions of putting in the time to exercise and finding ways to work more effectively through scheduling and personal motivation.

Making the connection that life changes are not created through items but rather through actions can be difficult because material things are visible. However, this change of mindset is essential to escaping a cycle of overspending.

2. The Idea that Spending Will Cause Social Improvement

Overspending can be caused by thoughts like: “If I spend money on expensive clothes, I’ll be more attractive,” or “If I buy this expensive bike, I’ll be more adventurous and fun to be around.” These are temporary solutions. Of course, new clothes and vehicles catch attention from others for a moment, but materials don’t create meaningful relationships.

If you’re spending money in order to “impress” people, it can be difficult to stop. Attention, even short-lived, is addicting. However, investing in others by offering time, attention, and support is a far more effective means of developing relationships – and it does not rack up expensive bills.

3. The Temptation to Spend is Too Strong

Everyone deserves to enjoy fun times with others and buy items that make them happy. However, when this becomes a normal part of your routine to the point that you don’t question purchases, this enjoyment can become a problem. Shopping and spending can become an addiction for some people. It triggers the “feel good” chemicals in our brains, which are incredibly powerful.

“Retail therapy” can become addictive quickly. Organizing low-cost get-togethers, shopping second-hand, and setting aside a fixed amount of “fun money” are all effective ways of enjoying life the way you deserve without a hefty price tag.

4. Easy Access to Funds Can Trick the Mind

Credit cards – particularly those that come with higher limits – can feel like “free money.” It’s easy to forget that you’re actually spending your paycheck when all you have to do to buy something is swipe a piece of plastic or click “Add to Cart.”

This is how people fall into credit card debt . . . and spend decades paying off interest. Keeping a log of your spending or actually using cash to pay for items can be very effective as “tangible” reminders that spending your money is just that: spending.

Overspending Leading to Too Much Debt? We Can Help

If this feels all too familiar, you’re not alone. Overspending doesn’t make you a bad person – and nor is it a promise that you’ll be in debt forever. There are ways back to financial health. That’s where Resolvly comes in.

Resolvly is a Florida Bar-approved lawyer referral service that helps clients nationwide connect with consumer protection attorneys that specialize in debt resolution. We have become an industry leader by helping thousands of Americans find the right, legal-based solution to reduce or eliminate their unsecured debt.

Resolvly helps with credit card debt, personal loans, private student loans, business debt, medical bills, and vehicle repossessions. We help you identify where your spending went wrong and how you can remain financially healthy even after your debt is resolved.