1. Overspending

After paying off your utility bills and your credit card, you may want to indulge and purchase goods or services that will make you feel better. This is a normal reaction that most people have. However, it could lead to problems down the line, especially if you give in to overspending, which could quickly lead into debt if you spend money you simply do not have.

So, that in and of itself should give you an answer: only spend what you have, but this alone is easier said than done.

If you start looking at your spending habits, then starting off with a budget could help you discover how much money you can spend safely and where you should start cutting costs. You could, for example, look for ways to lower your utility bills to make room for extra spending money.

If you do not have extra spending money, at least your budget will show you how much you spend on activities you do frequently. Say you like shopping for clothes or in order to satisfy your hobbies. In that case, calculate how much extra money you’d need in order to support those activities and look for extra streams of income.

Luckily, thanks to today’s thriving gig economy, this is one of the easier things you could look into.

If you’re often stressed about overspending, then these steps should help!