Are You Spending Too Much Money? 10 Warning Signs

We all have moments of weakness when it comes to shopping, but are you finding yourself spending too much money regularly? Here are 10 warning signs that you may have a problem!

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Here are 10 Warning Signs of Spending Too Much Money

1. How much have you saved up that’s designated for emergencies? If the answer is $0, you need to get a handle on that. We all know that unexpected things happen – appliances break, cars require maintenance and repairs, and jobs can end (sometimes due to no fault on your part). Are you financially ready to deal with those situations? If the answer is no, there’s a good chance you’re spending too much money.
2. Are you planning for your future? Or do you not look ahead because you think that financially, you can’t afford it anyway?
3. Do you find yourself running out of cash sooner than expected? Are you surprised when you look in your wallet and find it empty? If you’re overspending, chances are your money doesn’t go as far as you’d like it to go.
4. Do you struggle with even paying the minimum payments on your credit cards? When I got my first credit card, I assumed paying the minimum on my credit card balance was fine! Here’s an example of why it was a BAD idea: imagine I charged $1,000 and stopped using the card. The card had an 18% interest rate, and my minimum payment was $25. Do you know how long it would take to pay that $1,000 off if I didn’t charge anything else on the card? Nearly 5 years (actually 4 years, 11 months)! Honestly, I certainly had no idea! The best way to use credit cards is to pay them off monthly. If you can’t do that, pay more than the minimum balance so you don’t find yourself paying for something you likely don’t have (or maybe never use) for years! Overspending on credit cards is dangerous – don’t fall into that trap!
5. Are you seeing your credit score decline? Is your score lower than where you’d like it to be? As you spend more and more on credit, your scores can drop. Experian, one of the three major credit bureaus, discusses credit utilization as one of the things that can impact your score.
6. Are you maxing out the limits on your credit cards (meaning, are you using up every bit of available credit on each card)? That also contributes to your credit utilization score. They look at your total available credit vs. how much is used on each card (like if a card has $1,000 available and you charge $1,000). That’s in addition to your overall credit utilization across multiple cards. Experian recommends keeping your credit utilization below 30% (and preferably, below 10%). When you spend too much money on one credit card, credit bureaus notice that.
7. Are you finding you can’t pay your bills on time? That’s dangerous. What do you do when this happens?
8. When you see yourself getting into trouble, are you juggling balances to make it look like you can pay your bills on time? If you’re moving balances around to cover for spending too much, chances are you’re getting yourself into trouble.
9. Are you experiencing high stress because you know you can’t pay your bills? Is your anxiety level going up? Or maybe…
10. Have you emotionally checked out? By that, have you stopped facing the issue of spending too much and getting yourself into financial trouble?

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Knowing What You Do, Are You Overspending?

After reading these warning signs (and I’m sure there are others), do you think you are spending too much money? Earlier, I shared the 12 Psychological Reasons for Overspending. It might be helpful for you to understand why you’re falling into this trap. Next, we’ll look at specific things you can do to get your spending under control. Understanding how to budget using the 50/30/20 rule may help you get control too.

In the meantime, would it help if you could make some extra money? Here are 10 Ways to Boost Your Income.

Do you want to reduce what you spend on food and dining out? Read Make a Meal Plan Based on Weekly Sales. Get Shopping Advice Plus a Weekly Meal Plan that you can use, or focus on How to Make Dinner Fast (with sample recipes included).

To learn more about overspending, check out these books from Amazon.

Note: I am not a financial advisor nor am I an accountant. The information I’m providing should be carefully considered as I am just sharing what I’ve discovered that was helpful for me. It’s important to do your due diligence and consult financial professionals before making decisions.