Overspending – 3 Steps To Spend Money Intentionally
Overspending is one of the easiest traps to fall into when you live abroad. Exchange rates, different costs of living, and cultural habits around spending all shape how you use your money. Rents are up, interest rates are high, and everyday items are starting to feel like luxury goods, no matter where you live.
Money is often handed out easily, especially in the US, to pay for your everyday life. But as an expat, you quickly learn that falling into debt in a foreign country can make you feel even more anxious. A strong mindset is required to avoid that trap.
If you’re looking for ways to stop overspending, or if you just need some insight into your spending habits while living abroad, then this post is for you.
During my expat life across different countries and cultures, I gained some really helpful knowledge. Not only did I prevent overspending, but I also developed a very relaxed and satisfying lifestyle that works for me in Spain, the US, and Germany.
How I Stop Overspending
Everything is under your control. That’s the good part.
Here are my 3 golden nuggets to think about and explore:
Mindset
Strategy
Habits
Once you understand the concept, it’s easy to follow, particularly in this order.
Mindset
That’s the first step to master. Without it, the other steps aren’t as effective.
I See Money Mainly as a Tool, Not a Goal
When I realized that money is a tool and not the goal, my relationship with it shifted. It’s supposed to buy me freedom and time or generate more money, but I never saw it that way. I now ask myself: Will the things I buy bring me freedom, generate more time or money? Or are they just short-term gratification—or even handcuffs that keep me tied up?I Spend in Alignment With My Values
My life as an expat is very unexpected, colorful, and valuable. My credo is to live where my heart feels completely at home, no compromises. What’s important to me: healthy food, a relaxed lifestyle, the weather, the ocean, and nature. These are my core values. When I spend money, I ask myself, “Does this purchase bring me closer to the life I want?” If it’s not aligned with my health, relationships, freedom, or personal goals, it’s probably not worth it. Living abroad taught me to be clear on what matters, because every country offers distractions. But my core values travel with me.I’m Aware of Emotional Spending
I took some time to reflect on my spending. What was my situation when I spent that money? Most of the time, it was because I saw something on social media. I thought, when I buy this, I’ll feel like they do. I caught myself thinking I deserve this luxury, or I need this new shiny object, for whatever reason. Once I noticed my behavior, I could address and change it.Let me share a quick story: I remember watching these cowgirl movies and telling myself, “I’m that girl, I want to dress like them.” So I bought the clothes, only to realize they didn’t fit my lifestyle at all.
Strategy
As an expat, I have to decide where my money goes more strategically. But I’ve also adapted this mindset to my everyday life. Because I already know my values, I also know exactly what’s important in my life.
We probably all go through the experience of wanting things that turn out to be disappointing. And once we have them (maybe because we saw cool reels about it), we realize it’s not what we expected.
So here’s my first strategy:
• Why
I go deep with that, because as a people pleaser, I tend to buy things to impress others or to fit in.
When my family and I moved to Texas, we rented a huge house, because everything is bigger in Texas! We’d never lived in a house that size. It was cool, just like in the movies: high ceilings, a kitchen island, a fireplace. But it was also pricey, and we realized we were overspending. Why? Because for our family it was too much space (I had to clean it most of the time, no fun here). And our monthly payments were sky rocket high. Eventually, we downsized when I decided to move back to Spain.
Especially with social media, I know I’m not alone in that. So I try to be honest with myself: Do I want to buy this to keep up appearances, or does it contribute to my vision and lifestyle?
When we moved to Texas, I learned the hard way how easy it is to adapt to local habits, bigger house, bigger bills. Moving back to Spain reminded me that smaller sometimes means freer
Another strategy is:
• Patience
I’m active on social media, and unconsciously I see things that catch my attention and create desire. So I created a rule for myself: I wait 24 hours before I buy anything. I’m not talking about daily necessities like groceries or gas, but things like clothes, electronics, beauty stuff, or home decor fall under my 24h rule.
And then there’s:
• Options
If, after 24 hours, I still want or need something, I ask myself: Are there other options? Sometimes I do this immediately, but sometimes I don’t. Especially with bigger purchases, I go through this process several times. Are there cheaper options that bring me the same result, now and later?
Habits
This is the more practical part, where I actively do something.
Now that my mind is set with intention, it’s time to build some habits around it.
The 24h Rule is already in place. Most of the time, my desire fades when it’s not instantly gratified. I forget about it the next day, which means it’s not important to me.
Practicing Gratitude is a habit many people probably overlook. But it helps shift focus away from shiny new things. They become magically unimportant.
One night, I was scrolling Amazon with stuff in my cart I actually didn’t need. Then I looked around, realized I had everything I needed. A comfy couch, food in the fridge, books I hadn’t read. I logged out and made tea instead.
It’s always a great reminder of what I’ve already accomplished, and I’m grateful for that.
Logging Out of online shopping apps is another effective trick. Especially with Amazon, it’s just too easy. If your mindset is already strong, this may not be necessary. But if it’s not, this helps make impulse buying harder.
Cash is actually a very powerful tool. First, you have to go get it. Second, it gives you a visual sense of how much you’re spending. When I see that money in my hand and know that’s all I have to spend, it becomes psychologically harder to give it away.
In Spain, cash is still a common way to pay. It made me realize again how powerful it feels to see the money in your hand.
Fun-Money is exactly what it sounds like. It falls under budgeting, which I personally don’t love. Life isn’t static, so my budget shouldn’t be either. Fun-money was the only budget I set in the past to stop overspending. I allowed myself to spend it on whatever I wanted, and that was enough.
When you live abroad, it’s tempting to spend on ‘experiences’ all the time. Fun-money helped me enjoy life without breaking the bank.
No Loans on everyday items. In fact, no loan at all would be best. Even when interest rates are “low,” you’re still paying for money. In personal finances, loans of any kind are liabilities.
Your house mortgage? A big handcuff.
Your car loan? Another handcuff.
The money you make goes straight to those expensive loans. As soon as you take one on, you’re literally overspending.
However, if you have a strong mindset and solid financial education, there’s nothing wrong with having a mortgage. But everything else should go through your process for not overspending.
Final Thoughts
I hope you found some value in this post. Living abroad comes with its own unique financial challenges, but also the chance to learn a lot about yourself. There are probably many more ways to stop overspending. But for me, these 3 steps helped me create the life I live today and build a fun, healthy relationship with money.
