Mykail James is not ashamed to call herself a \u201crecovering overspender.\u201d<\/p>\n
The Washington, D.C.-based financial educator, who also goes by \u201cthe boujie budgeter\u201d online, says she used to spend too much money on splurges like concert tickets and clothing.<\/p>\n
But today, she has her spending under control thanks to a set of rules she follows.<\/p>\n
One rule? She gives herself a limit for how much she can spend in certain categories. She can buy a concert ticket, but not if it costs more than $45, for example.<\/p>\n
She also keeps her spending money separate from her bill-paying money<\/a>. That way, she has a set amount dedicated to \u201cfun\u201d each month. Once it runs out, she can\u2019t spend any more.<\/p>\n That technique allows her to enjoy herself without added financial stress.<\/p>\n \u201cI don\u2019t avoid concerts, but I set limits,\u201d she says.<\/p>\n Setting boundaries with plenty of wiggle room for enjoyment is a key to tackling overspending without burning out, according to financial experts.<\/p>\n Here are five more tips:<\/p>\n Go category by category<\/p>\n James suggests taking a close look at where your money is currently going. Are there certain monthly expenses<\/a> that continue to be bigger than you expected?<\/p>\n That information will help you figure out where to focus your efforts. Food, entertainment and subscriptions are common culprits for many people, she says.<\/p>\n \u201cThink about how that spending fits into your overall lifestyle,\u201d James adds, and what you might want to tweak.<\/p>\n Define your wants and needs<\/p>\n \u201cIdentifying where the line between needs and wants lies can be healthy in terms of deciding where to cut back,\u201d says John Jones, certified financial planner and investment advisor representative at Heritage Financial in Newberry, Florida.<\/p>\n While needs are essential costs like groceries and housing, wants include discretionary purchases such as restaurant meals or entertainment.<\/p>\n Opting to delay or modify certain splurges can alleviate budget<\/a> strain.<\/p>\n Perhaps you \u201cneed\u201d a vacation, but can opt for a lower-cost hotel instead of the luxury resort, Jones says. Or maybe you need new clothes but can shop sales instead of paying full price.<\/p>\n \u201cWe can still satisfy those needs, but not frivolous needs,\u201d he says.<\/p>\n Save before spending<\/p>\n Like James, Jones also recommends separating out money designated for essentials before spending on any wants.<\/p>\n \u201cAs soon as your paycheck hits the bank account, put a certain percentage into savings so you don\u2019t have the urge to spend it,\u201d Jones says.<\/p>\n Those savings could be for retirement, college or an emergency fund. Setting the money aside first helps you prioritize whatever savings goals<\/a> you may have.<\/p>\n Plan splurges in advance<\/p>\n Jones loves buying guitars, but he tries to wait until he has the money saved up in cash. He takes a similar pay-in-advance approach to travel. To pay for his honeymoon to the Bahamas, Jones booked the cruise with a 0% interest loan, which he pays off every month in advance of the trip.<\/p>\n \u201cThat way we don\u2019t have to tap into any reserves,\u201d he says.<\/p>\n Trae Bodge, a shopping expert at TrueTrae.com who is based in the New York area, offers a similar tactic. If she sees something she wants online or in a store, she doesn\u2019t buy it right away. Instead, she walks away.<\/p>\n \u201cIf I forget about it, I know it\u2019s not important,\u201d she says. If it\u2019s on her mind days later, then she might make the purchase.<\/p>\n Turn saving into a social game<\/p>\n Start a friendly competition with friends to see who can save more, suggests Molly Ward, a CFP with Equitable Advisors based in Houston, Texas.<\/p>\n \u201cYou can share savings tips and check in to see how it\u2019s going for each other,\u201d she says.<\/p>\n Having those conversations with friends also helps reduce any stigma around prioritizing saving over spending, Ward adds.<\/p>\n It can be easier to save money<\/a> if your friends are doing the same. You don\u2019t have to keep explaining why you\u2019re opting to stay in instead of paying for a night out.<\/p>\n That\u2019s why James doesn\u2019t hold back when it comes to sharing her goals around spending less.<\/p>\n True friends, she says, will understand and support efforts that help you achieve your goals.<\/p>\n More From NerdWallet<\/b><\/p>\n Kimberly Palmer writes for NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.<\/p>\n The article Practical Ways to Tackle Overspending<\/a> originally appeared on NerdWallet.<\/p>\n If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement<\/a> and agree that your clicks, interactions, and personal information may be collected, recorded, and\/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Mykail James is not ashamed to call herself a \u201crecovering overspender.\u201d The Washington, D.C.-based financial educator, who also…\n","protected":false},"author":3,"featured_media":42878,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[4503,64,4504,524,12847,33623,6459,255,33624,67,132,68],"class_list":{"0":"post-42877","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-bills","9":"tag-business","10":"tag-cash","11":"tag-currency","12":"tag-dollar","13":"tag-dollars","14":"tag-money","15":"tag-personal-finance","16":"tag-u-s-currency","17":"tag-united-states","18":"tag-unitedstates","19":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114805290017529312","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/42877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=42877"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/42877\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/42878"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=42877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=42877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=42877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}