How to stop overspending money [Financial Calculator]

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On most occasions, overspending makes you feel guilty.  It does not matter if you want to buy groceries or a new car; you always tend to shoot above the budget. Assume you want to buy a new pair of shoes. You budget out a certain amount that you want to spend on these shoes.  As you reach the shoe shop, you see a big sign outside that says,“buy two pairs, get 10% off, buy 3 get 30% off”. You might not need those shoes till later, but happy with the deal, you buy three pairs of shoes when you only budgeted and planned to buy one. It might seem like a small amount initially, but as we keep buying things we don’t need or don’t plan for, our bills keep rising.Big discount during the festival times and the “buy one, get one free” is tough to resist. We think we are being smart and saving money, but we end up overspending.

One of the main problems people face when spending money is that they do not know that they are overspending. That is due to a lack of financial planning.Take the example of youngsters who just passed out of college and started a new job. With no family responsibilities and no debt to clear, they suddenly have a lot of money. They are also highly influenced by social media and lack awareness about financial planning. They slog at work all month, and when they receive their salary at the beginning of the next, they are tempted to make extravagant purchases and very soon find that they maxed out on their credit card.That is because most of them lack the habit of creating a budget. After all, they do not keep track of their expenses. They are also highly ambitious and tend to take on more work-load, which we help them earn more, earning more will lead to more spending. This vicious cycle will keep repeating. This habit needs to be curtailed. Though challenging to teach, there are a few steps to follow to stop overspending. Let us see a few of them:

Steps to stop overspending money

  • Overspending money is a dangerous and toxic habit. One of the first steps in stopping it is to educate yourself. You first need to understand where you tend to go from buying what is necessary to buying items that are not required. You need to know the trigger points that trip you over. These trigger points might not be easy to find out initially, but with self-retrospection, you can slowly identify the signs. Maybe you are attracted to significant discounts. Perhaps you want always to have the latest technology. Or perhaps you want to stay highly fashionable and in-trend at all times. Whatever is the reason, you need to find a way to overcome this. Once you do, your spending automatically reduces.
  • Always make sure that you have a budget and a shopping list. One of the main mistakes we make is not to plan and form a budget and shopping list. The key is to stick only with the list. It helps to keep the list available in your hand so that you have a vision of what you need.
  • Keeping your credit card away helps limit your spending. In times like these, when going digital is the norm, staying away from credit cards and digital transactions may be scorned, but you do not have a limit on your spending when you have your credit card. You keep spending and racking up more expenditures. It is best to not have your card with you when you go shopping. Permanently save only the required cash that you need. This will ensure that you only buy what you want and can avoid overspending.

One of the ways to make sure you do not overspend is to calculate how much money you need for all your financial needs. This can be done with a financial calculator.ICICI Direct offers a free online financial calculator. With this financial calculator, you can calculate all your financial requirements in an instance. If you want to know how much you need to save for payment of your medical insurance, you can use this tool to get answers in an instant.It is not enough to have these answers, you need to make financial decisions that will ensure that you do enjoy their benefits at a later date.


They say it takes about 90 days of practice for a habit to sink in. All it takes is a few months of dedicated practice. You can change this toxic habit of over-spending into a positive one of just spending for what is needed. Disclaimer – ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, India, Tel No : 022 – 6807 7100. I-Sec acts as a Composite Corporate agent having registration number –CA0113. Please note, Insurance related services are not Exchange traded products and I-Sec is acting as a corporate agent to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing.

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