These 3 Strategies Help Me Avoid Overspending -- and They Could Work for You, Too

TransUnion reports that as of the fourth quarter of 2023, Americans owed $1.05 trillion in credit card debt. Now, the reality is that credit card debt doesn't always come as the result of overspending. You might lose your job for a period of time and be forced to charge basic expenses until you're employed again.

But it is fair to say that some credit card debt can come as a result of spending too much. And since I'm not a fan of losing money to interest, I try to do what I can to avoid overspending and risking debt. Here are some steps I take to keep my spending in check.

1. Automating savings

Most banks these days let you set up automatic transfers for different purposes. What I have set up is an automatic transfer from my checking account to my savings account each month. This helps me avoid overspending because I'm left with less money in my checking account to tap.

You might think, "Well, couldn't you just raid your savings if you need or want access to more money?" And that's true. Savings accounts are unrestricted, and you can tap yours at any time.

But in my brain, once money lands in my savings, it means it's untouchable barring an emergency expense situation, like a home repair I couldn't have anticipated. So if you think similarly, then automating your savings might help you better manage your spending, too.

2. Checking my credit card balance every week

Some people don't check their credit card balances until their monthly statements come in. But I like to log into my credit card accounts to see what my tab looks like on a weekly basis. This is helpful because if I see that I'm at a high number by the midpoint of the month, I can scale back my spending for the rest of the month to avoid ending up with a balance I can't pay in full.

It's a good idea to set up a recurring appointment on your calendar that blocks out time for this task. If you only have a few credit cards, it should take 15 minutes or less. But spending those 15 minutes could do good things for your personal finances.

3. Using the 24-hour rule for impulse buys

I'll admit that I don't tend to be very hard on myself when it comes to small impulsive purchases. If a friend texts and asks me to grab coffee, I'll say yes if I have the time and won't really stress the fact that the $5 latte wasn't originally in my budget.

However, I do try to be much stricter when it comes to larger unplanned purchases, so I impose what I call the 24-hour rule. Basically, if I'm tempted to buy something on a whim, I force myself to wait 24 hours to complete the transaction.

Often, I'll come to the realization that the item in question isn't one I need. Or, if I decide to make the purchase, I'll feel better about it knowing that it was at least thought out. If you've been known to give into impulse purchases, you may want to set a similar rule.

We're all human, and sometimes, our brains push us to spend money we know we shouldn't part with. But if you take the same steps I did, you may find that you're able to reduce your spending considerably. This doesn't mean that you'll never fall victim to an impulse buy or you'll never have a larger credit card bill than usual. But over time, these habits could lead to less spending and more savings.