There was a point in my life where I wasn’t happy unless I was spending money. More specifically, spending money to accumulate material things, or eat good food. I’ll admit that I still like to eat good food, but I now understand the concept of moderation. It took a lot of mistakes, and more years than I’d like to admit, to learn that living well without overspending is possible. Simple habits for living well without overspending can be your routine.
I think the first step is wanting (or even needing) to stop overspending. If you can’t get over the need to constantly spend and accumulate, you won’t see success in the habits that help you avoid overspending. If you can avoid hitting financial rock bottom before you decide to stop overspending, that will put you more in control of your financial future. In CGS Podcast Episode #1: Big City Spender to City Girl Saver, I break down my financial rock bottom and how it taught me to stop overspending.
I’m a living testament to the fact that you can live a good life and still be good with money. You can enjoy yourself and be on a budget. You can live well without overspending. I’m sharing 6 simple habits to start implementing to live a good life without constantly overspending on things you don’t truly want or need.
6 Simple Habits for Living Well Without Overspending
#1 Define Your Values and Priorities
How can you live a life you love if you don’t know what you love? If you don’t know what you value or what to prioritize? One of the first steps you should take to begin fostering a life of living well is to get clear on your own values and priorities. I did this when I read 7 Habits of Highly Effective People by Stephen Covey and I’ve been aligning my decisions and choices to those values ever since.
When you understand what truly matters to you in life, you can start ensuring that your spending aligns with those things. Your spending should reflect your core values. Your money should support your priorities. Let me give you an example. As you know, before City Girl Savings came to be, I was an avid overspender, particularly on material things – clothes, shoes, accessories, etc.
When I was forced to get my finances in order and had to learn to say no to spending my money on those things, I came to realize that I didn’t really care about them. I didn’t value them as much as I thought I had. It became easier and easier for me to avoid spending my money on those things. However, I did come to learn that I value travel and exploration. I had zero ounce of guilt when I spent my money on travel, new experiences and new places.
If experiences bring you joy, make sure you budget for travel and activities, as opposed to material things. If you value high quality clothes, make sure you budget for your purchases and say no to spending on regular meals out splurges. The point is to get clear on what you value and align your spending with it.
One last thing I will say on this is this: it’s okay if your values and priorities change as time goes on. It’s a part of life. Don’t be afraid to revisit your values and priorities, to change them or even to reaffirm them.
#2 Practice Gratitude on a Daily Basis
I know I mention gratitude often, but only because of how powerful it truly is. When you can appreciate the things you do have, you won’t constantly seek happiness through spending. You won’t need to get that “spender’s high” just to feel good. You not only learn to live with less, but you learn to appreciate the things that are in your possession.
Journaling what you’re grateful for, listing out your gratitude list, or reflect regularly can help shift your mindset from lack to abundance. The key is to be consistent with your efforts. I would recommend daily practices for gratitude. For me, I list 5 things I’m grateful for every morning. I also take time to appreciate my life on my morning walks.
A big part of living well is loving where you are in the present. Loving what you have in the present. Gratitude is what makes that possible. Check out CGS Podcast Episode #102 – 6 Ways Gratitude Leads to a Richer Life for even more benefits of the practice.
#3 Make it a Habit to Budget for the Things You Love
The common denominator between living well and not overspending? A budget! That’s right, a budget. Your budget should tell you what your income needs to cover for you to survive (bills), for you to plan for the future (savings), and for you to enjoy your life (fun spending). Now, depending on your situation, you may not be able to spend as much as you’d like on enjoying life, but knowing your spending limits is key to avoiding overspending.
Not only does having a budget help you avoid overspending, but it also allows you to spend your money guilt-free for the things you love. Imagine not having to stress out about treating your mom to a facial? Imagine being able to indulge in daily coffee shop lattes without fear of a card decline? A budget makes this possible.
#4 Adopt the Mindset of Quality over Quantity
We’ve all had those experiences where, against our better judgement, we tried to save a couple bucks, go the less expensive route and it ended up costing us more in the long-run. I experienced this recently. My brother and I needed to replace the washer and dryer in our rental home. Instead of investing in brand new machines, that come with warranties, we decided to go the refurbished route.
There’s nothing wrong with buying used, but some things (like a quality washer and dryer to give our tenants a good experience) shouldn’t be skimped. We ended up having to replace the washer twice and the third time, the tenants were ready to invest in their own. Bad customer experience.
If you want to live well without overspending, you’ll want to adopt the mindset of quality over quantity. Learn to save for and invest in high-quality items that last, rather than cheaper things that need constant replacement. Apply this mindset to clothes, home goods, and even experiences. Trust me, you’ll save yourself a lot of time and stress.
#5 Embrace and Seek Out Free or Low-Cost Activities
I’m ashamed to admit that I used to think that having a good time always had to mean spending money. Until I learned to embrace activities that had little to no cost. Things like kayaking on Town Lake in Downtown Austin, exploring different parks and trails around town, and catching an old favorite at the local discount theater.
Living well doesn’t have to constantly mean spending money. You can live a life of fulfillment and joy without having to spend a dime! Take some time to explore options that bring joy without a hefty price tag. Things like community events, hiking, or library resources.
I also challenge you to use creativity to find fun in everyday moments. For example, instead of going out to dinner for your next friends’ outing, host a potluck where everyone contributes! Same people, same positive experience, less money spent!
#6 Reflect Before Making Any Discretionary Purchase
Living well means you live with intention. You’re mindful, present and aware. Start taking this approach with your spending decisions. Any time you go to spend money, reflect on the purchase. Ask yourself: Ask yourself: Do I really need this? Will it add lasting value to my life?
More often than not, you’ll find that your purchase isn’t really in line with your values and priorities. To help you build up this habit of reflecting before purchasing, implement a “24-hour rule” for non-essential purchases. Wait a day before you end up making the purchase. Let yourself noodle on the item and make sure it aligns with your priorities. If it does, make the purchase and feel good about it. If it doesn’t, move on.
Related: 6 Simple Ways to Live Within Your Means
Have you reached the point in your finances where overspending just isn’t as fulfilling as it used to be? That’s a great place to be mentally. It means you’re ready to start doing things differently…and that’s where the fun happens. That’s where you get to see a different result from your financial actions. Start implementing the habits above one and a time. Before you know it, you’ll be more at peace and content with your life, all while growing your bank account balances!
Did you hit your financial rock bottom? What do you really think about overspending? Drop a comment below to share your experiences with living well while maintaining your budget!
-Raya
The CGS Team
