Kimberly Palmer, Neldwallet
Mykail James is not ashamed to call himself a “recovery excess.”
A Washington, D.C.-based financial educator who is also an online “Boujie budgeter,” says she spent a lot of money on splurges such as concert tickets and clothing.
But today she manages her spending thanks to the set of rules she follows.
One rule? She gives herself a limit on how much she can spend in a certain category. She can buy concert tickets, but not if it costs more than $45, for example.
She also keeps money apart from the money to pay the bill. That way she will have a set price dedicated to “fun” every month. Once that’s gone, she can’t spend any more.
The technique allows her to have fun without adding financial stress.
“I don’t avoid concerts, but I will set limits,” she says.
Finance experts say setting enough boundaries with plenty of wiggle room for fun is key to tackling overexpenditures without burning out.
There are five more tips.
Move to categories by category
James suggests that you take a closer look at where your money is currently heading. Are there certain monthly expenses that continue to be larger than expected?
That information will help you know where to focus on your efforts. Food, entertainment and subscriptions are common perpetrators for many people, she says.
“Think about how that spend fits your overall lifestyle,” James adds, adding what you might want to tweak.
Define your desires and needs
“We are committed to providing a range of services to our customers,” said John Jones, certified financial planner and investment advisory president at Heritage Financial in Newbury, Florida.
Needs are important costs such as groceries and housing, but include discretionary purchases such as restaurant meals and entertainment.
Choosing to delay or change certain sprages can reduce budget tension.
Perhaps you “need” a holiday, but you can opt for a low-cost hotel instead of a luxury resort, says Jones. Or you need new clothes, but you can buy the sale instead of paying the full price.
“We can still meet these needs, but they’re not flirty needs,” he says.
Save before spending
Like James, Jones also recommends separating the money specified for essentials before spending on essential needs.
“As soon as your salary hits your bank account, you’re going to save a certain percentage and have no urge to use it,” Jones says.
These savings are for retirement, university or emergency funds. Putting your money aside first will help you prioritize savings goals you may have.
Plan your plans ahead of time
Jones loves to buy guitars, but he waits until he saves money with cash. He takes a similar payment approach to travel. To pay the honeymoon to the Bahamas, Jones booked the cruise with a 0% interest loan.
“That way you don’t need to take advantage of the spare,” he says.
Trae Bodge, a shopping expert at Truetrae.com based in the New York area, offers similar tactics. If she sees what she wants online or in the store, she won’t buy it right away. Instead, she leaves.
“If you forget that, you know it’s not important,” she says. If it’s in her mind a few days later, she might buy it.
Turn your saving into a social game
Molly Ward, a CFP with a fair advisor based in Houston, Texas, should start a friendly competition with friends to see who can save more.
“You can see how each other is going to share and check in savings tips,” she says.
Conversing with friends can also help reduce the stigma around prioritizing savings over spending, Ward adds.
If your friends are doing the same thing, it’s easier to save money. Instead of going out at night, you don’t have to continue explaining why you’re choosing to stay.
So James won’t hold back when it comes to sharing his goals about reducing spending.
A true friend will understand and support the efforts that will help you achieve your goals, she says.
Kimberly Palmer writes for Nald Wallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.
In this article, practical ways to tackle overexpenses originally appeared in Nerdwallet.
Original issue: June 18th, 2025, 2:11pm EDT
