Most Brits can relate to how their spending can spiral out of control sometimes without them even noticing. Often, this is due to the allure of convenience, while other times, it might be a sneaky subscription or a simple lack of attention to their bank balance. Either way, these little habits can stack up over time, leaving you wondering where your money has gone. So, here’s a list of subtle signs that might indicate your spending is a bit out of hand.
Bank Statements Go Unchecked
Checking your bank statement regularly is one of the best things you can do for your financial health, so if you’re skipping out on this, you’re missing a crucial opportunity. Even small recurring charges can quietly add up, yet you won’t notice them if you don’t check. Just take a few minutes to review your transactions, and you’ll be able to identify areas where you’re overspending.
Contactless Payments Feel Weightless
These days, many of us simply tap our card or phone to pay, and while this is undeniably convenient, it also makes it harder to connect with how much we’re spending. Unfortunately, this ease can lead to thoughtless purchases, especially for small items like snacks or coffees. Therefore, it’s smart to carry some cash for small expenses, helping you identify exactly how much you’re spending.
Direct Debits Are Running Wild
Most of us can relate to being subject to forgotten direct debits, some of which are significant in size and can, therefore, drain our bank accounts. Subscriptions, gym memberships, or forgotten app services might still be ticking over even if you’re not using them, so that’s yet another reason to check your bank statement, specifically your standing orders.
Borrowing Becomes Routine
Another sign that you’re overspending without realising it is if you’re always reaching for an overdraft, payday loan, or borrowing money before payday. It might not seem like that big of a deal at the time, but usually, it signals that you’re living beyond your means. While emergencies happen, consistent borrowing could point to overspending habits that need attention, so be careful.
Impulse Buys Are a Regular Occurrence
Spontaneous purchases, regardless of whether they occur in a shop or online, can derail your budget quickly. These small, unplanned treats might seem harmless, but over time, they add up. To prevent falling into supermarkets’ traps, keep a shopping list of items you genuinely need and stick to only buying them.
Online Orders Pile Up
If packages arrive at your door and you’ve forgotten what’s inside, it’s a clue you’re spending without much thought. We can’t deny that flash sales and free delivery deals can be tempting, but waiting 24 hours before purchasing might help you rethink those impulse clicks.
Shopping Has Become a Pastime
It’s a sad fact of life that a lot of people who overshop are giving themselves what is called “retail therapy”. Yes, that dopamine hit from buying something cool might seem like a quick mood boost, but treating shopping as a hobby will only lead to you buying things you don’t need. Instead, it would be better to explore free or low-cost activities to replace the habit and give your wallet a well-deserved rest.
Unused Purchases Are Commonplace
Is your wardrobe filled with clothes that still have the tags on, or perhaps your kitchen cupboard is overflowing with kitchen gadgets that are gathering dust? If either of those situations sounds familiar to you, you’re obviously buying more things than you use. So, consider selling or donating these items to clear space in your home, and try to avoid this unnecessary habit in the future. Trust us–your wallet will thank you for it!
Social Spending Feels Pressured
It’s all too common for us Brits to feel pressured into agreeing to expensive outings or frequent gatherings just because we’re too polite to say “no”. You might see this as noble, but come on–it only leaves your budget unnecessarily stretched. If you don’t feel like letting down your friends, consider suggesting alternative plans instead, such as a movie night at home or a picnic.
A Budget Is Missing
This should go without saying, but if you’re not tracking your income or expenses, this is going to make it way too easy to overspend. Even a basic budget can provide clarity, showing where your money goes and helping you stay on track. There are plenty of free apps to simplify the process if spreadsheets feel too daunting, so there’s no excuse not to add it to your financial plan.
Sale Discounts Are Too Tempting
Buying items you don’t need just because they’re on sale is a quick way to overspend. Unfortunately, discounts can create the illusion of saving money when, in reality, you’re still spending on unnecessary items. As we advised earlier, just stick to using a shopping list because that way, it will be much easier to resist those “bargains.”
Unreturned Items Keep Adding Up
A lot of retail shops and websites give us a generous return period for clothing and other items, but sometimes, we forget, letting the return period lapse, even when the items didn’t fit or weren’t what we wanted. Ultimately, this is the definition of wasted money. A quick reminder in your calendar can help you stay on top of returns and avoid losing out on refunds for items you won’t use.
Eating Out Is a Habit, Not a Treat
Everyone deserves to eat out once in a while, but frequent restaurant meals, takeaways, or coffee stops can sneakily consume a big chunk of your budget. Cooking at home or bringing your own lunch to work might seem small, but it could save you hundreds over the course of a year.
Travel Costs Are Rising
It’s not a good sign if you’re using your car for every errand or paying premium prices for last-minute rides, all of which will quietly eat away at your funds. Walking, cycling, or planning travel in advance can cut out these costs significantly without major sacrifices, and you’ll often get exercise while you’re at it, too!
Price Comparisons Are Skipped
Do you pay full price for items online without checking for discounts or better deals? If so, you might be overspending unnecessarily, as there are tons of price comparison websites and loyalty schemes that can help you find savings on just about everything. Before you make a purchase, even in a regular shop, just head online and search for the prices, and who knows–you might find yourself a genuine bargain.
Credit Card Debt Stays the Same
Another sign that you’re spending unnecessarily is if your credit card balance isn’t shrinking at all despite regular payments. Unfortunately, this is a clear sign that you’re relying too heavily on it. Yes, high interest rates can make it tough to pay off entirely, but try your best to figure out a realistic repayment plan to help you regain control.
New Gadgets Keep Calling Your Name
So many Brits replace their phones and laptops every year or two just because a newer model is available. Most of the time, these “upgrades” only involve minor changes, so they’re simply not necessary. At the end of the day, if you have devices that already work perfectly fine, upgrading is only eating away at your funds and with big bites!
Holiday Spending Blows the Budget
You definitely shouldn’t feel guilty about planning yourself a holiday, but luxurious trips abroad can be incredibly costly. Sure, if you can afford it, then why not? However, if they tend to exceed your planned expenses, this isn’t financially healthy. You can still go on a holiday, but consider planning ahead to prevent last-minute premiums or cut back on dining out to cut down your expenses significantly.
Convenience Comes at a Cost
Brits are often guilty of relying heavily on pre-packaged meals and bottled drinks, and there’s no denying that these products are convenient. However, as with everything else on this list, these small expenses add up over time. Even taking 5 minutes a day to prepare your own snacks or fill up your reusable water bottle will make all the difference, saving you a lot of money and reducing waste at the same time.
Savings Are Non-Existent
If you haven’t got any savings at all, we’ve got bad news for you–you’re probably overspending in other areas. We’re not saying that you have to put aside hundreds a month, but even £50 here and there will make all the difference. The best thing to do in this situation is to automatically set a small, consistent amount of cash aside at the start of each month, even if it’s just a tenner, which can help you slowly build a cushion for unexpected costs.
You Can’t Explain Where It All Went
Last but not least, if you’ve ever had that feeling of simply not knowing what you spent your money on, that’s really not a good sign of your financial health. You’re most definitely overspending without even thinking about it, and it’s time to change that. For starters, get a short-term spending diary set up, even if it’s just the notes section of your phone. Over time, this will help you identify where the leaks are and give you a clearer view of your financial habits.
