Advertisement
U.S. markets closed
  • S&P Futures

    5,207.50
    -7.25 (-0.14%)
     
  • Dow Futures

    39,199.00
    -24.00 (-0.06%)
     
  • Nasdaq Futures

    18,185.25
    -46.25 (-0.25%)
     
  • Russell 2000 Futures

    2,047.50
    -2.30 (-0.11%)
     
  • Crude Oil

    82.60
    -0.12 (-0.15%)
     
  • Gold

    2,164.30
    0.00 (0.00%)
     
  • Silver

    25.33
    +0.06 (+0.24%)
     
  • EUR/USD

    1.0877
    0.0000 (-0.00%)
     
  • 10-Yr Bond

    4.3400
    +0.0360 (+0.84%)
     
  • Vix

    14.33
    -0.08 (-0.56%)
     
  • GBP/USD

    1.2724
    -0.0005 (-0.04%)
     
  • USD/JPY

    149.2290
    +0.1310 (+0.09%)
     
  • Bitcoin USD

    66,089.39
    -1,477.66 (-2.19%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,722.55
    -4.87 (-0.06%)
     
  • Nikkei 225

    39,596.29
    -144.15 (-0.36%)
     

5 Overspending Triggers That Can Sabotage Your Budget

5 Overspending Triggers That Can Sabotage Your Budget

No matter how practical you are with money, there are times when your budget is at risk of getting hijacked. There are spending triggers everywhere, tempting us to ditch our budgets and splurge on things we don't need. The good news is that most of these common triggers can be avoided or overcome with some simple techniques.

Avoid sabotaging your budget. Protect yourself against five of the biggest overspending danger zones.

Reward purchases. Have you been cutting back on your day-to-day spending and suddenly feel like you deserve a reward for your good financial behavior? Just like an overzealous dieter, budgeters who try to cut back on everything at once may find themselves feeling so deprived, they'll overdo it in a moment of weakness. The key to approach budgeting is to look at it like a marathon, not a sprint. Start by cutting those areas you feel most comfortable with first, and then work on others as you build your willpower -- and bank account.

You scored a deal. You may stumble upon those new winter boots, or that piece of furniture you've been coveting for 50 percent less than the original price, and think that by purchasing it, you're spending your money more wisely. Although shoppers should take advantage of good bargains that can save money, keep in mind that a deal is never a deal if you have to finance the item on your credit card. Before heading to the register, pause for a moment and put things in perspective. Focus on what you're spending, not what you're saving. That new item may be half off, but that's still money you hadn't budgeted to part with.

You think a purchase is necessary. You "need" the new iPhone 6 because you have to keep up with the latest technology. You "need" to go out to dinner because all your friends will be there. Maybe you just really "need" a new pair of boots because your current ones are out of style. The problem is that none of these are really needs -- they're justifications for overspending. We've all fallen victim to this spending trigger at one point or another, but the problem is that keeping up with the Joneses will likely run you straight into debt. Instead, try to keep the focus on what matters to you, and only buy what you really need.

You're on vacation. When you're on vacation, it's only natural to relax -- physically, mentally and even financially -- but it's easy to get carried away. You're surrounded by overpriced tourist excursions, spa treatments and drinks by the pool. It's important to remember that budgeting for airfare and the hotel is not enough. Set aside money for all the extras so you don't end up going way over budget. Planning and budgeting for all the activities you want to partake in before you leave will allow you to splurge on that extra spa treatment without giving yourself a guilt trip afterward.

You're celebrating. Weddings, baby showers, job promotions, birthdays. The reasons to splurge in the name of celebration are endless, and the harsh reality is all that celebrating adds up fast. So if you know you have a special occasion coming up, like a birthday or anniversary, put money aside well in advance so you're not financially slammed when the event finally rolls around. Even just $20 a week can add up to hundreds if you've got a few months to plan. But if you're blindsided by a gift-giving occasion or haven't had time to save quite enough money, tap into your creativity instead of your checking account. Think outside the box and opt for a do-it-yourself gift or handwritten letter. Besides costing you no additional money, the person receiving the gift will likely be more touched by the sentiment.

By identifying your overspending triggers, you will become more conscious of the times you're vulnerable to overspend. And remember, reasonable splurges are OK -- as long as they comfortably fit into your budget.

Holly Perez is a consumer money expert at Intuit and mint.com spokeswoman, a leading Web and mobile money management tool that helps people understand and do more with their money.



More From US News & World Report

Advertisement