How Can You Avoid Spending More Than What Is In Your Bank Account?

How can you avoid spending more than what is in your bank account?

Many people have financial problems and always worry about how not to use too much money. To have more abundant financial resources, besides increasing your income, you must also manage your expenses effectively.

Most of the problems associated with overspending are rooted in personal habits. Let’s keep reading this article to know “How can you avoid spending more than what is in your bank account?”

How Can You Avoid Spending More Than What Is In Your Bank Account?

Control The Expense

You will not be able to control your financial situation if you do not know exactly what you are spending. It would be best if you started making expenses statistics right away, thereby understanding your money habits to have a suitable spending control direction.

Record Daily Spending

Many people choose to use an expense notebook to list their sources of income and expenses. At the end of the month, after summarizing, you will know what you have spent money on, what is necessary and what is not, and then make reasonable adjustments for the following month.

One of the methods of managing expenses with a financial notebook is the Japanese Kekeibo method. In addition, there are now many mobile applications that can help you manage your finances and expenses instead of using a physical notebook. Some popular and free apps are Money Lover, Money Keeper, and Spendee.

Use Handbook Or Financial Management Applications

If you do not know how to allocate income to expenses, apply the famous formulas used by millions worldwide.

A simple rule for beginners in financial management is the 50/20/30 rule. Accordingly, 50% of your income is used for essential expenses such as food, accommodation, transportation, and utility bills. 20% will be used for savings, risk provisioning, and debt repayment. And the remaining 30% is used for personal expenses such as travel, entertainment, and shopping.

Another example is the recipe of 6 jars introduced by businessman – speaker T.Harv Eker – author of the best-selling book “Secrets of the Millionaire Mind”.

Accordingly, your income is divided into six parts: necessary spending (55%), long-term savings (10%), education fund (10%), enjoyment (10%), financial freedom fund, etc., main (10%), charity fund (5%).

Apply Some Money Management Rules

Once you’ve decided on your monthly savings goal, you need to put it away as soon as you have income. Of course, a bank savings account is the most reasonable option if you want to optimize your spending and avoid overspending on your target savings.

Not only will you cut your spending, but you’ll also get interested in your savings. Many worry that when they save money, they will have to deposit a large amount at once, but the interest rate is not high. Moreover, the currency will depreciate over time, etc.

However, even if the savings are not small, if it is increased regularly and accumulated over time, they can also be surprisingly profitable.

Learn How To Invest

Instead of focusing on spending, start focusing on investing. From small to large, everything requires experience and learning to succeed, don’t be shy but don’t take too much risk. Invest in places where you feel certain, safe, and profitable.

What Happens If You Spend More Than What Is In Your Bank Account?

To improve and develop your life, you should learn to save money effectively to fulfill your desires. If you continue wasting money, it will become a bad habit and have serious consequences later.


The above article answers, “How can you avoid spending more than what is in your bank account?” Besides, we also provide some useful tips to help you manage your spending more effectively. Apply these tips quickly and save more money for the future.

Last Updated on 2 years by admin