4 signs you're spending too much money, even if it doesn't feel like it (2024)

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• According to a recent poll, 62% of Americans are concerned about their financial situation.
• Due to life being more expensive all around, many are overspending even though it doesn't feel like it.
• If you don't have emergency savings or are living paycheck to paycheck, those are red flags.

Do you find yourself wondering where your money has gone? Does it always seem like there is more month than money, even though you have steady income coming in? Financial anxiety is real, and it's on the rise. According to a Harris Poll, commissioned by the Bipartisan Policy Center's Funding Our Future Coalition and Daily Pay, 62% of Americans feel anxious about their current financial situation.

Lingering inflation and rising costs on daily essentials has made life more expensive all around. From what I have seen in my reporting, a main concern is being able to respond well to emergencies that happen. I also see people worried about paying all of the bills and having enough money left over to save.

If you are having difficulties making ends meet or find yourself worried about money, you may be spending too much, even it doesn't feel like it.

Here are four signs you are spending too much money:

1. You always have credit card debt

In many ways, using a credit card can be beneficial. You can earn rewards and points and even cash back depending on the credit card — but this is only worth it if you can pay off your bill in full.

If you find yourself unable to pay without reaching for your credit card or chipping away at a constant balance that carries over month to month, you may be spending too much.

Credit cards are not an extension of your income and shouldn't be used as such. If you find yourself relying on your credit card(s) and are not able to pay off the balance, it may be time to review your budget and spending habits.

2. You don't know where your money is going

I remember when I lived in Washington, DC, where there was an annual weekend of Congressional Black Caucus events. At the end of the weekend, I would go into my wallet and find a bunch of receipts and no money. That may have been OK for a special occasion, but if I lived my life like that I would be financially unstable.

When you don't know where your money is going, it's all too easy to overspend.

Sit down and write down where your money goes on a monthly basis or use a budgeting app or even an Excel spreadsheet (which is what I use) to keep track of spending.

3. You don't have an emergency fund

Ideally, you should have between three months and one year of expenses saved in an emergency fund. Savings, even a little, should be a line item in your budget. If you don't have any savings at all, that is a red flag that you are spending too much money.

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4. Living paycheck to paycheck

If once you get paid, you spend down until you do not have any money left until the next paycheck, you are spending too much money. You may also be living beyond your means. Most people get paid twice a month. If, once you pay your bills and expenses and buy groceries, there is nothing left, then it's time to look at where your money is going and review your budget.

Ask yourself: Are you in debt? Are you eating out or ordering in multiple times a week? Are you shopping a lot? Are you paying for numerous subscriptions? These can all be reasons why you are living paycheck to paycheck and spending too much.

If you feel like you never have enough money, it might be true! Because you may be spending too much.