How to stop overspending | blog.firstffcu.com

Overspending can sneak up on even the most budget-conscious individuals. Often, it’s not the big ticket items that derail our finances – but the small or recurring expenses that we overlook. By identifying your hidden expenses, you can save more and spend smarter moving forward into the new year. Here are six ways you might be overspending without realizing it — and how to take control.

1. Forgotten Memberships and Subscriptions

Gym memberships, streaming services, or monthly subscription boxes can easily become budget drainers if you’re not fully utilizing them. Many companies rely on automated payments to keep you locked in without noticing. Take time to review your bank or credit card statements for recurring charges and cancel any memberships or subscriptions that no longer add value to your life. With a few clicks, you could save hundreds of dollars a year.

2. Neglecting Utility Efficiency

Utility bills can quickly add up, especially if you’re not mindful of your energy usage. Simple changes like turning off lights when leaving a room, sealing drafty windows, or upgrading to energy efficient appliances can make a big difference. Consider installing a programmable thermostat to save on heating and cooling costs or switching to LED light bulbs for long-term energy savings. A few small adjustments can significantly reduce your monthly expenses.

3. Dining Out Too Often

Eating out might be convenient, but it’s one of the easiest ways to overspend. Instead, try meal prepping or cooking at home. Planning your meals for the week and buying ingredients in bulk can save both time and money. Packing lunches for work or school is another easy way to cut out unnecessary spending. You’ll save money while having more control over the quality of your meals.

4. Not Using Your Credit Card to Your Advantage

If you’re using a credit card, make sure you’re maximizing its rewards. Different cards offer perks like cash back, travel points, or discounts at certain retailers. Take note of where your card offers the highest rewards and use it strategically for those purchases. Be sure to redeem your rewards before they expire. The right credit card can turn everyday spending into meaningful savings. First Financial’s VISA credit cards offer cash back and our Cash Plus Cards offer uChoose Rewards redeemable on travel, merchandise, gift cards, and more!* With three options to choose from, you can easily find the perfect fit for your lifestyle.

5. Falling for Fees

Hidden fees, such as processing charges on tickets or unexpected service fees at hotels, can inflate your spending without you even noticing. To avoid these, carefully review the terms before making a purchase or signing a contract. If a fee seems unreasonable, don’t hesitate to contact customer service to ask for clarification — or even request a waiver. Comparing options to avoid businesses known for high fees can also help you keep costs in check.

6. Paying Unnecessary Bank Fees

Bank fees like overdraft charges, account maintenance fees, or ATM surcharges are common, but they’re also avoidable. Start by reviewing your accounts for any hidden costs, then explore alternative accounts with lower or no fees. At First Financial, we offer checking and savings account options designed to help you keep more of your money where it belongs — in your pocket.** Explore our range of options today to find the account that best suits your needs.

Save Smarter with First Financial

By addressing these common overspending habits, you can take control of your budget and redirect those savings toward your financial goals. At First Financial, we’re here to help you make the most of your money with personalized advice and cost saving account options.

For more tips on saving and managing your finances, call us at 732.312.1500 or visit a branch today. Don’t forget to subscribe to the First Scoop blog for ongoing insights and strategies to keep your finances on track.

*Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter. APR varies up to 18%, when you open your account based on your credit worthiness. This APR is for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.

**$5 in a base savings account is your membership deposit and is required to remain in your base savings account at all times to be a member in good standing. All credit unions require a membership deposit. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.

You probably have the best intentions when it comes to saving money. With all the temptations out there, it can be hard to keep your finances in line. Splurging here and there every once in awhile is okay – but the habit of overspending can become a much bigger problem if you don’t keep things in check. Check out these five steps to stop overspending, before it gets out of hand.

Understand Your Triggers

Overspending is often caused by impulse shopping. When you’re out shopping, do the small items in the checkout aisle get you? Do you always pick something up while waiting at the checkout line, even though you don’t actually need anything? Ask yourself why. It’s important to understand what your triggers are. Do you spend because it gives you a thrill or because you’re bored and have nothing else to do while waiting in line? Understanding exactly why you overspend will help you get to the root of the problem and find lasting and realistic solutions.

Track Your Budget

The most important thing you can do to stop overspending is to actually have a budget and track your expenses. It’s not enough to just have a rough idea of how much you’re spending. You need to know exactly where your money is going and what you’re spending on everything. Start logging expenses in the budget whenever you buy something or pay a bill. At the end of the month, sit down and analyze your spending habits. You might be surprised at what you find out, and even more surprised when you realize you can cut a lot out without feeling much of a sacrifice.

Learn to Say No

Overspending has a lot to do with social pressures. Sometimes it’s just really hard to say no. You might be trying to keep up with the Joneses, or maybe your friends are just constantly asking you to go out. Think about your priorities before you agree to anything. Is the decision going to hurt your finances and should you really be making that commitment? Learning to say no is a big part of being financially responsible. The sooner you learn what you can and can’t afford, the closer you will be to financial independence.

Live Within Your Means

Here’s a simple thing you can do to improve your finances: don’t spend more than you have. Getting into the habit of spending every paycheck is dangerous even if you never get into debt, because emergencies do happen and you will need savings to fall back on. It’s even worse if you overspend and fall into debt to make purchases. Once you owe money, you not only have to pay for what you buy, but you also need to pay interest on what you owe – effectively making your paycheck smaller for the foreseeable future. Learn to live within your means. It’s certainly not easy at the beginning, but scaling back little by little will set you up for long term success.

Allow Small Rewards

Personal finance is serious business, and most of the time it may not seem very fun. That doesn’t mean you can’t enjoy yourself in the process though. Don’t forget to budget for a “YOU” fund. Allow yourself small rewards from your paycheck. Just make sure the “YOU” fund doesn’t cause you to go over your budget.

Article Source: Connie Mei for moneyning.com