Why do I keep spending money on things I don't need?

"Overspending is often more than just a lapse in financial judgment; it frequently signals underlying emotional or psychological triggers . For instance, some people may overspend as a form of escapism, temporarily distracting themselves from stress or emotional pain," Hathai says.

What is the 50 30 20 rule?

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings .

What is the 30 day rule?

The premise of the 30-day savings rule is straightforward: When faced with the temptation of an impulse purchase, wait 30 days before committing to the buy . During this time, take the opportunity to evaluate the necessity and impact of the purchase on your overall financial goals.

What is the psychology behind overspending?

Overspending can happen for different reasons, such as: You might spend to make yourself feel better . Some people describe this as feeling like a temporary high. If you experience symptoms like mania or hypomania, you might spend more money or make impulsive financial decisions.

Is overspending a mental disorder?

For some, overspending becomes buying-shopping disorder, or compulsive shopping disorder (CSD) , which is characterized by repetitive, uncontrollable spending that causes serious life difficulties.

This person could become obsessed with counting money, double checking accounts, and seeking reassurance about their financial state from friends and loved ones . This fear, like many other OCD fears, can become debilitating and significantly impact a person's quality of life.

Is $4000 a good savings?

Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved.

How much savings should I have at 50?

By age 50, you'll want to have around six times your salary saved. If you're behind on saving in your 40s and 50s, aim to pay down your debt to free up funds each month. Also, be sure to take advantage of retirement plans and high-interest savings accounts.

How much should a 30 year old have saved?

If you're looking for a ballpark figure, Taylor Kovar, certified financial planner and CEO of Kovar Wealth Management says, “By age 30, a good rule of thumb is to aim to have saved the equivalent of your annual salary . Let's say you're earning $50,000 a year. By 30, it would be beneficial to have $50,000 saved.

What is the disorder of spending too much money?

Compulsive spending, sometimes called compulsive buying disorder or oniomania , is spending far beyond what is necessary. Though it often causes financial harm, people of means may engage in compulsive spending without suffering serious financial disaster.

What is a no spend month?

The "no-spend" challenge has been around for years but gained new life in 2024, thanks to TikTok and No Spend January at the beginning of the year. Participants are encouraged to go on a spending "fast" by abstaining from buying anything but the barest essentials .

What is spending money on unnecessary things called?

Definition of spendthrift . as in wasteful. given to spending money freely or foolishly spendthrift consumers had amassed a mountain of debt on their credit cards.

How To Stop Spending Money (On Unnecessary Things) (2024)

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“I can’t stop spending money!”

Yeah, I know you are fighting the urge but finding ways to save money is tough.

But learning how to stop spending money (especially on unnecessary things) is even tougher. As humans, we just tend to spend money we don’t have.

And I bet you are constantly asking yourself, “Why do I spend so much money?”

Trust me, I’ve been there and done that.

To be honest, there are still rare occasions when I catch myself buying something on impulse.

It’s bound to happen to anyone despite how great they are with their money!

Like most people, there will be times when you can’t control your spending.

Something you like may catch your attention.

You could be bored, angry, or sad, which triggers you to spend.

Is spending money an addiction?

Sometimes you may even engage in “retail therapy” because it’s nice to treat yourself once in a while, especially when you’ve achieved something.

That’s fine because we all deserve a little treat sometimes.

Just be careful though, because similar to drinking, your spending can really spiral out of control and become a shopping addiction.

This compulsive spending behavior could leave you and your family in serious debt with no assets.

My point is “retail therapy” or occasionally buying things you like isn’t bad as long as it’s done in moderation.

But when you’re unaware, or in denial, something small that doesn’t seem harmful can eventually cost you thousands of dollars and leave you in financial trouble!

Don’t forget to save and pin this image here on Pinterest so you can always refer back to this list post to help you overcome spending so you can finally save more! 🙂

You can also download and use these “stop spending money wallpapers” to serve as a reminder and inspiration in your financial journey.

How to stop spending money on unnecessary things

You don’t deserve any financial pain, and I’m going to show you how to avoid it!

Today, I’m going to talk about the ways to stop spending money so you can gain control and achieve your financial dreams.

👉 You can also check out these unnecessary things I stopped buying to save over $20,000 here.

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For example, I always use Survey Junkie and Swagbucks app to redeem free Starbucks or Amazon gift cards — this is a fun way for me to get my hands on those free and delicious Starbucks drinks!

You see the bottom screenshot?

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Why I was spending so much money

Here’s a quick personal story about my past reckless spending behavior. Luckily I didn’t go into debt because of it.

More than a few years ago, I wasn’t able to save money like I used to.

It was very unlike me because I was able to save, invest, and build wealth; but things changed quickly and my personal savings didn’t grow for two years!

I was mindlessly blowing my money on things because I thought it was going to solve my problems and make me happier.

Most of my paychecks were spent on expensive restaurants, clothes, makeup, shoes, home décor items, furniture, random stuff, etc.

Deep inside, I was scared and in denial.

I just couldn’t stop spending even though I was aware of my bad spending habits.

Fortunately, I was cautious about my behavior and accepted the fact that I needed help.

When I dug deeper to find out why I was spending so much money, I realized it was because I was depressed at the job I hated, had a lot of family issues, and was stressed about life.

Just knowing the root cause of my behavior helped a ton and I was able to learn how to stop spending money on:

Expensive food
Clothes, make-up, and accessories
Home décor and new furniture
Unnecessary things I don’t need (knick-knacks and doodads)

Before I share five essential strategies to prevent unnecessary expenditures, let’s address some frequently asked questions people often have regarding their excessive spending on items that seemingly fail to make them happier.

Why can’t I stop spending money?

Aside from the fact that money is meant to be spent, many factors come into play as to why you can’t stopspending it. Whether it’s emotional, psychological, or social, there is a lot to dig into. If you understand the reasons behind your uncontrollable spending, then it will surely be easier for you to take control.

When you’re stressed, do you feel like going out to shop just to get your mind off of things? This was exactly my experience when I wasstuck in a job I despised but couldn’t quit. Because I was so dissatisfied with where my career and life were going, I would find solace in the nearest shopping mall, buying one thing after another, thinking they would add to my self-worth. Well, I was wrong!

Sure, they would bring me happiness, but it was just temporary. They never addressed the main issue, so I just got into the cycle of impulsive buying. Instant gratification? Check!

How do I stop being an overspender?

It all starts with self-awareness. Why are you spending? Are you trying to impress others, or are you just looking for something to make you feel “alive”? Be honest. If you aren’t honest, you won’t find the main issue and you’ll just continue the habit. Identifying the problem will help you track what you’re spending.

Once you start to keep track of your overspending, you should create a budget and plan. Your budget should be realistic, though. Don’t change things so suddenly because otherwise, you won’t stick to it. Start by saving $100 a month and then work your way up to saving $1,000 a month.

What you really have to do, especially when you’re just starting, is to sacrifice. You might have to say goodbye to your credit cards. Use cash so you have no choice but to think twice before buying. And before you make any purchase that’s not a necessity, ask yourself whether you really need it. What I like to do when I’m shopping online is to leave the things I want to buy in my cart for a week. After a week, I’ll remove all those that I realize I shouldn’t buy at all. Sometimes, the fun is just in adding them to your cart and not buying them.

It’s important to remember, though, that transforming your spending habits and stopping your overspending will not happen overnight. Keep persisting until you can find yourself spending less and saving more.

How do I stop mindlessly spending money?

Trust me, I know it like the back of my hand—just how tiring and frustrating it is to see your cash vanishing into thin air. Sometimes, it feels like you simply touch your money and poof! Away it goes.

To stop the madness that is your mindless spending, you must be more mindful!

Step one:Trackeverything. And I mean, EVERYTHING! If you don’t want to physically write them down, get an app to make things easier. Do it every single day until it becomes second nature. This is the most important step so never skip it.

Step two: Prioritize. Needs over wants. This is the hardest part, and I’ve failed it many times before, but you just need a great deal of discipline. Always, always question the necessity of every purchase. If you’re having a hard time, create a budget (and be strict with it if you have to!) so it can guide you to get to your goals. And if you’re still unsure, sleep on it. It doesn’t matter if it’s a day or a week. Just sleep on it.

Step three: Look for other stress-relief activities. Most of the time, our mindless spending happens due to emotional triggers, so we have to redirect that energy into something more productive that won’t drain our budget.

Step four:Ditch the plastic. It’s too easy to swipe, swipe, swipe. If you keep using a credit card, it never feels like you’re spending anything.

Steps I Took To Stop Spending Money

So, here are steps you can take to stop spending money you don’t have.

After following through, I was able to gain control and reach my financial goals again!

1. Know your why and set goals

It’s important to get to the root of the problem because we won’t be able to break free from the overspending cycle if we don’t understand why this is happening in the first place. In addition to getting to the root of the issue, it’s also important to understand your motivations for seeking help to stop overspending.

There are many reasons why we suddenly feel like we want to stop spending money. A situation could have pushed us over the edge, like accumulating so much debt that you’re already struggling to make ends meet.

Are you trying to stop spending because you want to stop living paycheck to paycheck? Maybe you have this need to get out of debt right away? Or could it be that you just want to start building wealth for the future?

Whatever your reason, you need to understand your “why.” Knowing your “why” can help give you clarity and direction. Without knowing why you want to stop spending in the first place, you wouldn’t have the motivation or focus needed to make meaningful changes in your habits.

For me, the root cause of my past spending habits was being stuck in a job that drained me. That brings me to my why: I wanted to live frugally and save money so I could build wealth and eventually leave my job for something that would make me happy.

How about you? Why do you want to take your life in a different direction?

Related post: How To Create Wealth From Nothing

2. Figure out what triggers your spending

There are many psychological factors that may cause emotional spending.

Like my personal story above, yourspending habits could be triggered by your emotions.

You need to understand what triggers your spending habits before you can even fix the problem.

Here are some reasons why you may be spending more than you should:

You’re sad, angry or having a bad day.

Do you catch yourself buying something when you’re having a bad day at work?

Perhaps you got into a fight with your spouse?

The feeling of sadness or anger may prompt you to spend because you think buying something will make you feel better.

In other words, you think spending and buying things will eliminate your sorrows and make you happy. It’s sort of similar to drinking your sorrows away, but it becomes a vicious cycle and it only makes the situation worse.

You subconsciously want to impress others.

It’s hard to swallow this, but many people can’t stop spending on things they can’t afford because they care too much about what others think of them.

They try to keep up with the Joneses to protect their ego and self-worth without realizing the stress of debt and financial problems.

A good example is when someone purchases a big home or a couple of fancy cars that they truly cannot afford.

This is somewhat related to my next point.

“We buy things we don’t need with money we don’t have to impress people we don’t like.” 😩

You’re masking your low self-esteem.

I went through a phase where I was always buying new clothes, shoes, accessories, and handbags because I thought wearing a new outfit to work every day was going to make me feel more confident in front of others.

I felt pressured because most people at my workplace look sharp and are well-dressed.

I wasn’t very confident and had a lot of self-esteem issues. ☹️

So, I thought nice clothes, shoes, makeup, and handbags were going to make me more confident and happy.

To add to the stress, I was afraid that I wasn’t going to be liked by others. I realized it was all in my head.

I also gave myself the excuse that things were on sale, which gave me a reason to buy more.

I was actually becoming more depressed each day no matter how many new clothes I bought.

Even compliments from others didn’t make me feel happy or confident, so I realized the problem was me. 🙄

To make my situation worse, I was becoming more stressed because I wasn’t saving as much money as I used to!

You’re feeling bored

Have you ever felt the urge to spend because you’re bored and have nothing else to do?

I know I have, and that’s why I ended up with small knick-knacks, ornaments, and other “pretty” or “cool” stuff.

I regret these small purchases because they end up lying around my house collecting dust.

Sometimes my intention is to “window shop” but I would end up spending money because I’m bored. Plus, who couldn’t resist a “good” sale, or that fun and “cheap” item, right?

Have you heard of the horrifying stories of others who desperately sell their clutter to pay off their debts and overdue bills?

“If you buy things you don’t need, you soon will sell things you need” — Warren Buffett 🛍💸

You feel the need for instant gratification

We’re humans, and we love things that are instant and now. We just can’t hold our horses!

The sad part is this euphoria only lasts for a short period of time and we tend to forget.

Think about the new handbag, outfit, toy, random knick-knack, etc. you purchased because you thought it was going to change your life and make you happy.

I bet you probably forgot about those items by now.

The fact is your feeling for “instant gratification” has robbed over thousands of dollars from you (potentially even more such as your $1,000,000 retirement fund).

You try to make up for the past

I’ve mentioned that I was born into alow-income family that couldn’t save any money and struggled to make ends meet.

After being surrounded by “richer” peers at school and work (who thought I was weird for not having the same “rich” experiences as them), I started to feel as if I was deprived in the past.

I think the feeling of missing out on things in my past gave me the urge to spend more today.

3. Take action to stop buying things

Now that you know your why and what triggers you to spend, it’s time to take action to reduce your spending.

Here’s how to stop spending money on unnecessary things:

Look at your past spending activity

To stop spending money you don’t have, you first need to analyze your spending behavior!

I personally find this helpful when you take a look at ALL of your past transactions.

This includes ALL spending from your bank accounts, credit cards, receipts, etc.

I bet you’re going to be shocked at your numbers once you see them in Excel!

But trust me, this will help because you’re going to know how much you’re spending and see exactly where your money is going.

To give you an example, when my fiance and I looked at our monthly expenses, we did not realize that we were spending over 5 figures a year on food (for one couple only).

This was a huge wake-up call for us, so we started looking for ways on how to save money on groceries and food.

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Related post: 10 Things I Stopped Buying To Save Over $10,000(#4 May Shock You) 😮

Prioritize your needs and wants

Next, give yourself a realistic budget along with prioritizing your needs and wants.

You want to list all your needs like basic food, shelter, clothes, utilities, etc.

Once you know how much your basic needs cost, set aside an allowance for wants. These wants are things that make life more enjoyable but be sure you can afford them!

If you don’t have any more room to cut on expenses, finding ways to make extra money from home can help you improve your quality of life. These money-making ideas require no experience to get started!

💡 PRO TIP: I like to set aside a budget for my “guilt-free” spending.
Thanks to “I Will Teach You To Be Rich” personal finance book, this method allows me to save money before spending all of it. It’s easier when you save first and spend what’s leftover.

“Do not save what is left after spending; instead spend what is left after saving.” – Warren Buffet 🌟

4. “Out of sight, out of mind” will stop you from spending money

You’ll know how to control your spending better when things are “out of sight, out of mind”. 🙈

I mentioned at the beginning that people tend to spend money when they are bored, angry, or just having a bad day.

That ties in with the fact that we enjoy the euphoric rush of instant gratification, which most of us end up regretting.

Well, here’s how to stop spending money on unnecessary things that you think are making you happy but not.

Unsubscribe from retailers’ e-mails.

It’s okay to keep a few of your favorites in your inbox, but just be cautious of their marketing tactics.

And delete the rest!

Not only will this method block ads and marketing campaigns, but it will also stop you from FOMO (fear of missing out).

I used to think I was missing out on a great deal if I didn’t act fast. This made me spend more money without realizing.

That nice summer dress I purchased online through their e-mail notification cost me over $65 after tax despite it being 70% off, which is fine! I like it, and I still wear it.

BUT, there were a lot of other items I decided to add to my shopping list, and I bought some for my mom too.

After reviewing my purchases for that summer, I ended up spending $2,000 on clothes within a 3-month period! I was shocked because I thought, “How did my $65 purchase on a dress turn out to cost me$2,000?” 🤔

Purchases add up really fast, and this all started with that one e-mail notification about the store’s biggest sale.

Like I said, it can be hard to stop spending, especially when companies have lured you into their “great sale” or “buy more, save more.”

So, it’s best to unsubscribe and stay away.

Find an alternative hobby (preferablyone that makes money)💵💵💵 🌟

As I mentioned earlier, I thought new clothes, shoes, and makeup were going to fix my confidence, but they didn’t.

That’s because we shouldn’t be relying on outside sources to validate our worth. If you’re feeling insecure despite all your spending to cover it up, the problem is within. Buying material things to feel better is like using a band-aid to heal a broken bone—it just won’t work.

So what should you do to keep things “out of sight, out of mind?”

For me, what worked was keeping myself busy with new and cheap hobbies that I genuinely enjoyed. I took up making home décor crafts and flipping furniture to distract myself from feelings of insecurity and found these activities kept me busy enough to curb my shopping urges. But what was really great about these new-found hobbies of mine was that they helped me make extra money.

On top of that, I started this blog as a hobby seven years ago, with no experience and on a whim. Now, here I am, a full-time blogger!

This could happen to you, too, if you find a hobby that really gets your interest.

👉 You can learn how I made over $7,000 blogging online in February here.
What boggles my mind isI made close to $10,000 with this blog in March! This was beyond my wildest dreams ever! 🤩
Update: My blog now earns a consistent full-time income of six-figures per year and you can check out my progress from my previous blogger income reports.

So try exploring hobbies that you could do without shelling out a lot of money. Flipping furniture, selling handmade crafts, and blogging have stopped me from spending money.

For you, that could be hobbies like gardening, cooking, or even volunteering at a local shelter. Once something works for you, you’ll be more productive and happier since you’re focused on things that you enjoy.

Although your hobby doesn’t need to be money-making, it wouldn’t hurt to earn money from what you love doing, right?

⭐️ DID YOU KNOW?
Just a year and a half ago, I had no idea that starting a blog would improve my life both mentally and financially!
Blogging was a way for me to distract myself from feeling depressed and spending money.
Blogging also encouraged me to save money, make some extra money, and eventually allowed me to earn a full-time income. I was able to quit my job within my first year with no prior experience!
You too can start a money-making blog for just $2.95 per month (that’s over 60% off) and you get a FREE domain name ($15.99 value) when you sign up through my easy step-by-step blogging tutorial here. 👈
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5. Practice gratitude 🙏

Last but not least, always be thankful for what you have.

This strategy helps each time you’re tempted to spend on impulse, whether it’s due to emotions or feeling bored.

Nowadays, whenever I’m tempted to make spontaneous purchases, I think back to what I have. I don’t need more stuff or material things to be happy.

Practicing gratitude and learning how to be grateful makes you happier, healthier, and less stressed!

According to this article, research shows that owning stuff and material goods is unlikely to boost one’s happiness.

This proven strategy is very powerful and it has personally helped me cope with my low self-confidence issues.

“The studies suggest that materialistic people are less happy than their peers. They experience fewer positive emotions, are less satisfied with life, and suffer higher levels of anxiety, depression, and substance abuse.”

Now, I only buy necessities and things I absolutely love and appreciate.

I’m truly thankful for what I have — that is, my life, family, friends, experiences, and a few of my favorite splurges that make my life more fun.

Overall, I am happy with the fact that I’m still healthy and get to enjoy life with the people I care about.

Not only does being appreciative reduce my spending by a TON, but it also prevents my home from being a storage place for things. The last thing I need to stress about is a room filled with unnecessary clutter!

Final words on ways to stop spending money:

It’s okay to spend money and reward yourself once in a while.

I always say things in moderation and keeping a good balance is the key to living a happy life!

But sometimes it could get to the point where you find yourself spending too much money without understanding why.

The first and most important step is to understand why you are looking for help on how to stop spending money.

Know what your end goal is.

Next, figure out what triggers your spending. This may be stemmed from your emotional feelings.

Once you know your end goal and what’s prompting you to spend, take action by:

Analyzing and tracking your spending
Prioritizing your wants and needs
Creating a realistic budget (again, I like creating a “guilt-free” spending account aside to make saving money easier)
Finding ways to keep things “out of mind, out of sight” (I was looking and searching for hobbies that make money, which helped distract me from spending money and buying things I don’t need)