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#BadassBudgeting Tip of the Day: Identify the "Whys" Behind Overspending

Identifying our triggers with overspending (if overspending is a problem for us) is vital in overcoming overspending habits. Why do we overspend when we know we have an allocated budget? Let's address some of the potential reasons to get to a point of managing our triggers and eliminating habits of overspending.

  1. We do not have a Fun Fund built into our current budget.

A Fun Fund is a money fund set aside for fun be it coffees-on-the-go, takeout, spa days, fun trips, anything that strikes your fancy (within the budget, of course!). The Fun Fund makes the journey of debt repayment and financial management sustainable and even, fun!

2. We use a credit card for expenses and don't track how much we've spent along the way.

Using a credit card for expenses can be a very bad idea if not managed. If we spend on credit cards and don't track how much we've spend we can easily overspend and go over our budget, not having enough money at the end of our paycheck to pay our full balance and therefore having to pay interest to our bank.

3. We emotionally spend.

This can be tricky to identify and it takes some major self-awareness and patience. Do we spend emotionally because we are lonely? Isolated? Stressed? It's important for us to be able to identify the reasons behind taking out our wallets and spending our hard earned money due to emotional reasons instead of our truest needs.

Here are 3 reasons that might be behind the Why of our overspending. Do you have more Whys behind overspending that you'd love to share? I'd love to hear them in the comments below. Signed, Filipina Budget Girl.

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