6 Signs You are Overspending

4. You’ve tons of new unused clothes

If you constantly find yourself in the clothes showroom even when you have several unused brand new clothes in your wardrobe, then it is a clear sign that you are overspending. The fact that you still have clothes with tags on them shows that you are buying more than you can use. The same rule can be applied to other utility items.

5. Your expenses increase every time you get a raise

If you are a wise spender, then a raise in your salary should automatically lead to a rise in your savings. However, if you find that your expenses rise automatically with every promotion and your savings remain unaffected, then it is a sign that you are overspending.

6. Not having enough emergency funds

Experts suggest that you should have at least 8 months of living expenses as part of your emergency savings fund. If that is not the case, then you need to rethink your priorities in life and put your spending rate under the scanner.