12 Proven Ways to Stop Spending More Money Than You Make

Spending more than you earn can devastate your budget.

A woman with debt
Updated July 18, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

America has a big spending problem. In 2022, Bloomberg reported that 34 million American consumers tend to spend more than they earn.

Chances are that has become a truth for more and more Americans since then. Is that true for you? 

If so, you can still get your budget under control and boost your bank account, and it might not be as complicated as you think.

Here are 12 straightforward tips that can help you reduce overspending today.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

Getting a cheaper phone or cable plan

StratfordProductions/Adobe woman sitting on couch at home watching tv

Have you been with the same phone provider for a decade? Or perhaps you picked your current cable provider before other options were available in your area. Do you really need over 100 channels that you don't watch?

Whatever the case, reassess your phone and cable plans and make sure you’re still getting the best deal. In particular, don’t pay for more services than you need so that you can keep more money in your wallet.

If you don’t actually watch dozens of cable channels or don’t need an unlimited data plan, downsizing can save you some money.

Starting a side hustle

Drobot Dean/Adobe businessman talking on cellphone while working

If your day job doesn’t pay enough to make ends meet, picking up a side gig might take some of the strain out of your financial situation.

Driving for Uber or selling your crafts on Etsy are examples of how you can make a little extra money that could make a big difference to your budget.

Maximizing credit card rewards

Moon Safari/Adobe man with credit card using mobile phone

Do you use a credit card to buy groceries or pay for gas? If so, find a card that works for you instead of against you.

Cards that offer cash back or other perks for your most frequent types of purchases reward you for spending money on things you were planning to buy anyway. That can give your bottom line a boost.

Resolve $10,000 or more of your debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1

How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

Try it

Automating savings

Kirsten Davis/peopleimages.com/Adobe phone laptop and finance with a senior couple

If you tend to spend your paycheck before remembering to put money aside for savings, your bank’s automatic transfer feature can help.

Use it to set up an automatic recurring transfer from your checking account to your savings account on the first day of each month or whenever your paycheck hits your account.

That way, you can save before you start to spend without even having to think about it.

Automating bill payments

Alex from the Rock/Adobe casual man working using mobile phone app

Setting up autopay is a great way to make sure bills are paid on time so you avoid late fees. If you haven’t automated your mortgage payment, phone bill, utility bill, or any other crucial monthly payment, consider doing it now.

Make sure to plan ahead so you have enough in your checking account to cover the bill when it comes due.

Eating out less often

Prostock-studio/Adobe happy couple cooking dinner together

Making meals at home isn’t just typically more healthful than eating out, but it’s also often cheaper.

You can make multiple meals from the same basic ingredients, and you don’t have to budget funds for paying tips or splitting entrees either.

Avoiding shopping during retail sales

denisismagilov/Adobe colourful shopping icons are flying in the air

It’s hard to say no to a good sale at your favorite store, especially since getting something for 50% off is obviously cheaper than paying full price.

But when everything’s on sale, it’s tempting to buy more than you actually need. You might have a harder time avoiding impulse purchases that would have been easier to turn down if the items weren’t discounted.

Try not to swing by a store just because it’s having a sale. If you plan to shop during a sale, make a list and stick to it.

Going cash-only for a bit

peacefulwarior93/Adobe Businessman using card at an ATM

Whether you’re using a credit card or debit card, buying things with plastic instead of cash can tempt you to overspend, because you don’t see the actual dollars leaving your bank account or wallet.

If you overspend in part because it’s hard to accurately track how much money you have, try visiting an ATM and withdrawing the exact amount of cash you want to spend before you go to the store.

Staring at that cold, hard cash might make it more difficult for you to part with it.

Waiting 24 to 48 hours before completing an impulse buy

RightFramePhotoVideo/Adobe Amazon app on iPhone

Thanks to the internet, expensive impulse buys are easier than ever. 

If you stumble across an item, you don’t need that’s giving you that gotta-have-it feeling, go ahead and throw it into your virtual cart but don’t complete the sale.

Instead, close your Amazon app and wait a day or two before finalizing the purchase. The delay can help decrease your sense of urgency so you can make a more rational decision. 

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today


Not storing your credit card information on shopping sites

wifesun/Adobe lady holding credit card and inserting bank information

If you’ve stored your credit card info on the sites where you tend to spend the most money, you won’t think twice before hitting that “one-click purchase” button.

On the other hand, standing up to get your wallet so you can enter card details puts some time and space between you and the impulse buy. That can make it easier for you to decide against the purchase.

Tracking your expenses

Andrey Popov/Adobe accounting bookkeeper computing

It’s hard to stop overspending when you don’t know what exactly you’re overspending on.

So, if you want to crush your debts and put your finances on a solid foundation, sit down with your bank statements and figure out where your money is going.

You might learn that you spend way more than you think on eating out or that you accrue late fees on missed payments more often than not.

Once you identify some of your key financial pain points, you’ll find it much easier to find strategies for cutting back.

Sharing your goals to friends and family

Seventyfour/Adobe cheerful seniors enjoying time together drinking tea

Worried about sticking to financial goals on your own? Bring your close friends and family members into the conversation.

They can encourage you to keep going and hold you accountable when it comes to spending. Plus, letting friends know about your goals can help them spend less around you.

That simple step on their part might mean both of you are spending less, which is a big win-win.

Bottom line

Prostock-studio/Adobe smiling black couple discussing total amount of their spends at home

Breaking the habit of spending more than you earn can be painful. But it can pay off by helping you get ahead financially.

Avoiding debt and saving for the future will likely also help you sleep better at night. It’s hard to put a price tag on the peace of mind that comes from living within your means.

Choice Home Warranty Benefits

  • First month free
  • Protection for unexpected expense
  • 24/7 claims hotline
  • Network of over 15,000 technicians

Author Details

Michelle Smith

Michelle Smith has spent a decade writing for and about small businesses. She specializes in all things finance and has written for publications like G2 and SmallBizDaily. When she's not writing for work at her desk, you can usually find her writing for pleasure near large bodies of water.