Overspending

By Debbie Babalola

Money is emotional. It’s easy to fall into the trap of spending to feel successful, seen, or simply okay. But here’s the truth: building wealth doesn’t mean cutting out every joy; it means learning to spend with intention instead of impulse.

For many of us, especially as first-gen wealth builders, overspending isn’t just about buying shoes or brunch. Sometimes, it’s about healing, coping, or living up to expectations. That’s why managing your spending isn’t about harsh restrictions—it’s about setting boundaries that align with your goals, values, and lifestyle.

Here are five innovative ways to tackle overspending without sacrificing the things that make life enjoyable.

1. Give Every Dollar a Name

Create spending categories that match your reality. Bills, groceries, fun, self-care, giving; all of it matters. But when you budget without judging yourself, it’s easier to know where your money should go before it disappears. Set limits for each category, such as $100 per month for outings, and stick to them. When it’s gone, it’s gone.

Pro tip: Use a separate account or prepaid card for “fun money” so you don’t accidentally tap into rent funds.

2. Define Needs vs. Wants

You’ve heard this before, but here’s the twist: the line between a need and a want is personal. For example, therapy or regular hair appointments might be non-negotiable “needs” for your mental health and confidence. The goal isn’t deprivation; it’s clarity. List out your actual needs and see where you can make adjustments.

3. Pause Before You Swipe

Impulse purchases are often driven by stress or a change in mood. When you see something you want, wait 48 hours. If you still want it, you’re probably not acting on impulse. And if you’ve forgotten about it? That’s money you just saved.

Try keeping a “wishlist” in your notes app. Add what you want, revisit it later, and prioritize with intention.

4. Automate Your Savings First

The moment your paycheck arrives, set aside a percentage for savings. Think of it as paying your future self first. Whether it’s for emergencies, travel, or investing, saving before spending helps you resist the urge to splurge.

5. Make It a Community Thing

Start a group chat or challenge with friends: Who can cook at home more this month? Who’s skipping takeout for two weeks? When saving becomes social, it’s easier to stay accountable and way less awkward to say “I’m chilling in tonight.”

Remember: you don’t need to stop enjoying life to start managing your money better. You simply need to create a lifestyle that serves your goals and brings you peace of mind.

Takeaway
Overspending isn’t a flaw; it’s a habit that can be unlearned. And as Black millennials rewrite our money stories, every small shift matters. You can still be bougie and budget-conscious. Wealth isn’t about sacrifice; it’s about strategy.