Top 7 Reasons Why We Overspend

Before you can gain control of your financial future, get the financial freedom that you and your family deserve, you need to understand why you overspend. Then you can learn how to handle your overspending and how to turn your overspending into wealth and prosperity. 

I have been an overspender all my life until now.

Before I was able to control and lower my overspending, I had to understand why I have been spending more than I need to.

# 1. Emotional Spending

We all have a lot of things happening in our lives, we all have the past that includes difficult situations and times when we or our loved ones have been hurt. We could have learned spending behavior from our parents.

We also tend to cope with negative emotions, stress, sadness, and boredom by buying stuff we don’t need.

When we shop, many of us feel a temporary pleasure and distraction from our reality.

# 2. Impulsive Buying

This is when we don’t plan what we need to buy. We don’t ask ourselves, do we really need it? Do we get a long-term value from this? What are our financial consequences if we buy this?

It’s so easy to fall into this trap. You go to a mall, and you see stuff on sale or you go online and you see advertisements for things that are shown as cool right now that are on sale, especially when they tell you that it’s for a limited time only.


If you only knew how many times, I fell into this trap 😊


We all have reasons to overspend

# 3.  Status and Social Pressure

I have never met a person who does not want to feel successful and does not want others to think of them as someone who is successful. We also want to feel accepted and belong. We want to feel that we have been able to accomplish great things in our lives, that our efforts have made the difference and we have collected our value for creating value for others.

Sounds familiar? Well, it’s true. We live in a society where social standing is part of our lives. Don’t ignore it. You just don’t need to spend money to accomplish it.

At we want you to feel successful and accomplishes and we will guide you through this process, without you having to spend a lot of money to prove it.

# 4. Credit Availability

For many Americans it has become easy to get a credit card. Now you can apply for one on your phone and immediately have credit to spend.

The issue is that it’s expensive, very, very expensive and that we don’t use the credit as responsibly as we should. If most people only knew what a 25% interest rate will do to their financial future.

When we use credit cards, it’s so much easier for us to buy what we don’t need, especially online, with just one click buy option 😊

Many of us get disconnected from our true financial reality, we think, hey, I can easily afford $100 per month. The problem is that you will pay at least double for that item if you pay just $100 per month. So, what happens to many of us is we get something today and then endure tremendous pain over time to pay it off. Some of us get into what I call financial slavery, just paying your creditors instead of getting ahead by investing and saving.


Credit is not a bad thing, credit cards are not something that is bad, actually I think quite the opposite, credit can be an amazing thing. It’s how we use them and how we build habits on using them. We will help you figure out how to use them to your advantage.

# 5. Financial literacy

All of us would like to think that we know what we are doing. Let me tell you a little secret, I have advanced degrees in Finance and Economics and a bunch of professional licenses in Finance. Guess what, I was not able to make a budget and stick with it. My issue was different, I knew every advanced part possible, like investing, I was missing the basics.

We all must admit that we need to learn, and we need to start with the basics.

What does money mean to me and my family? Why do we need it?

How do I set my financial goals?

What are our financial goals?

How do I save money?

How do I grow my money?

How do I make myself and my family accountable?

How do I create a path to prosperity?

# 6. Advertisements

Advertisements work. They work really well. I remember when I looked at a pair of jeans and that pair followed me on every website, with more and more discounts that are only for today, until I bought the jeans. They know how to create a desire and influence your behavior.

The most powerful tactics are connecting your data to your identity and showing you how you want to see yourself, then making you feel as if you are missing out on a sale or even belonging to something.

Basically, advertisements are designed so you buy what you need and what you don’t need.


We will help you with using that to your advantage, so you will buy what you need at the best prices while ignoring what you don’t need. Our team at is already working on this 😊

# 7. Lack of Financial Goals and Planning

How can any of us reach a goal if we don’t have one? The answer is that we cannot.

We need to have financial goals. For some of us they might include getting a bigger house, or getting a summer house, or retiring comfortably by a certain age or being able to invest in a business or have money for our kids’ education, or buying a car that we want, or it can be simply a vacation that we really want.

Whatever our financial goals are we need to understand how much they will cost and how much and how we need to save and invest to make sure that we can create a roadmap to get where we want to be.

What we all must realize is that it will not be an easy task, it’s something that will require a lot of tweaking and changes. We will learn how to spend smarter, how to turn our overspending into prosperity by investing and saving the money that we have rescued and kept.

At the same time, we always need to think how we can increase our income and once we do, how not to spend our increase on what we don’t need.

Conclusion: There are many reasons why we overspend. Some of us have to deal with all of them, some of us with only one or two. Some of us have a lot of money and some don’t. It does not matter; we are all facing the same problem and we will have to use similar solutions to get our financial house in order. It’s not only about money, in reality, it’s about our wellbeing, health, and our relationships with family and friends.   

The best part is that we can show you how to beat this beast.

We will show you some very easy ways on how you can start today. With very small changes every day, you can make very big changes for getting your financial freedom.


To learn more send us an email to with your name, and a brief description of your spending habits. 

Further Reading

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