Blog Post --- Published on December 16, 2021 | Last Updated on December 16, 2021

Why is Overspending Common? The Reasons and Ways to Avoid It

Why is Overspending Common? The Reasons and Ways to Avoid It Why is Overspending Common? The Reasons and Ways to Avoid It

Jagoans, it's time to be honest with yourself, have you ever experienced overspending? Some Jagoans may rarely overspend, but some others often or even always overspend. You're not alone. Many people like to overspend. But why is that?

You need to know why many people often overspend and how to avoid it, so you can be wiser in managing your finances and overspending can decrease or even disappear over time.

Reasons for Overspending and How to Avoid It

1. Can't resist discounts

Who doesn't like discounts? Sellers certainly know this very well. This is why they often offer discounts.

Even though you don’t need the discounted item at first, because of the word "discount", you can't resist the temptation and end up buying the item.

You need to know that sometimes the discount given is not a real discount. There are times when the price of an item has been raised beforehand, so that when it is discounted, the item actually only returns to its normal price.

There are also those that offer discount packages with minimum purchase conditions. Since you're after the discount, you're forced to buy x items.

One way to avoid overspending when there are many discounts is to decide in advance what you want to buy and how many. But, you have to stick to the list.

Another way is to set a budget for shopping needs. You are free to use the money that has been allocated as long as it hasn’t been used up. However, when the allocated budget has depleted, you know that shopping is done for the month.

2. Peer pressure

Hanging out with friends and doing various fun activities to strengthen friendship is okay. But, if you overspend because of your friendship, you may need to reconsider.

An example that often happens is eating out together. A friend picks an expensive restaurant. When you look at the menu, you no longer have an appetite because of the prices. But, it's impossible if you don't order food.

After finishing eating, this friend asks to split the bill evenly. None of the other friends protest. You may be frowned upon if you are the only one who protests.

Then, what is the solution? You can try telling them that you have other needs that are a priority, so eating out at a fancy restaurant is not possible for some time, for example. Good  friends will understand your situation.

Or, you can reduce the frequency of eating out with them. You can justify that you have other activities.

3. Can't think straight

There are many reasons you can't think straight. You may be going through something upsetting throughout the day, so splurging is your escape.

Maybe you are too busy with work at the office so you feel tired and can't help but to splurge. You may also overspend in hopes of getting pleasure. However, in the end you will regret it because it turns out that you have wasted money on something unnecessary.

The solution to this? Don't shop when your mind is not clear. You can go shopping in the morning when you don't have much on your mind, so you can think more clearly.

Manage Finances with Jago So You Don't Overspend

Because it's too easy and there are many temptations to overspend, you can start doing what is called budgeting.

By allocating money in advance, you will be more disciplined in spending money. As long as you don't add another budget once it's been used up.

So that budgeting is easy and practical and you can monitor how much money has been spent, you can use the Jago application.

The Jago application has the Spending Pocket feature to separate a number of expenses. You can create up to 20 Spending Pockets for 20 types of expenses. For each Pocket, you can allocate a budget. This way, it will be easier for you to monitor your expenses and manage your finances.

Just try it right away, Jagoans, so that overspending can be minimized. Download the Jago application here if you don’t have it yet.

You might also like..

Productive Debt vs. Consumer Debt: What's the Difference?

February 23, 2024

Productive Debt vs. Consumer Debt: What's the Difference?

Which type of debt is good and which one should be avoided? Let's find out the difference between productive debt and consumer debt and how to pay off debt the jago way. Read more

How to Save at Bank Jago the Way You Want: Boost Income and Achieve Moneyfesting

February 19, 2024

How to Save at Bank Jago the Way You Want: Boost Income and Achieve Moneyfesting

Who doesn't want their income to increase? By saving at Jago you can also achieve your financial goals. Choose Locked Pocket, Deposit or other saving features as you want. Read more

Unexpected Big Expenses When Renovating or Remodeling a House

February 13, 2024

Unexpected Big Expenses When Renovating or Remodeling a House

Renovating or remodeling the house is necessary to make it more comfortable to live in. Find out how to prepare the budget for expenses that may arise. Read more

Semua jadi Jago

Mulai hidup seutuhnya dengan keluarga dan kerabat.

Download aplikasi Jago, lalu pilih Jago atau Jago Syariah dan daftar akunnya lewat ponsel kamu

download on app store download on google play

Scan Kode QR di bawah ini dengan kamera ponselmu untuk menginstall Jago.