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If you feel that, despite your best intentions, your hard-earned money gets frittered away, you may need to curb your spending.

Sure, shopping and dining out are part of life, but the convenience of tapping and swiping can make it easy to overdo it. And all the tempting things you see on social media can lead to less than mindful buying, not to mention credit card debt. In fact, the average American currently has $6,730 in high-interest credit card debt, according to Experian®’s latest research, and some of that could be due to overspending.

Read on to learn more about what can cause you to overspend, plus tactics that can help you better control your spending.

12 Ways to Stop Overspending

If you find yourself being a bit too freewheeling with your spending, try some tactics to help you cut back.

1. Mapping Out a Budget

Without a budget, you can spend money mindlessly, without thinking much about it. To create a budget and learn how to be better with money, check your income and track your current spending patterns from bank and credit card statements. You can also use a free tool to track your spending, which makes the process even easier. You can start by seeing what your financial institution offers.

Identify essential expenses vs. non-essential ones. Necessary spending includes such items as housing, groceries, utilities, health care costs, and transportation. Non-essential costs are things like eating out, leisure travel, and entertainment — and they can add up to a lot of money over a month.

Once you see how much you spend in each expense category, it may be easier to reduce spending. Experiment with different budget methods to find the right fit.

Recommended: 50/30/20 Budget Calculator

2. Calculating Hourly Earnings

A night out may not seem like a huge splurge in the moment — especially when compared to your total earnings for the month. But, that same expense can quickly appear more significant when you tabulate how many hours of work are needed to pay for it.

To try this approach, figure out your hourly pay: Divide your after-tax pay by the number of hours worked. If you get paid twice a month and work a 40-hour week, divide your total earnings by 80 (two weeks times 40 hours). Then use that insight:

•   For instance, a birthday dinner and drinks with friends that costs $200 would translate to four hours of work if you earn $50 per hour.

Whether that spend feels worth it is a personal decision, but this process can nudge you to consider carefully to make sure the expense feels worth it.

3. Understanding What Triggers Spending

Whether it’s the gourmet food section at the grocery store, the Instagram influencer with the covetable closet of clothes, or that friend who drops big bucks on concert tickets, for all of us, the urge to spend can be triggered by emotions and outside influences.

Even the physical shopping environment — in-store displays, prominent markdown messaging, and subtler cues like store layout — can trigger people to overspend. When figuring out how to stop spending money, it can be key to understand which emotional or psychological cues make you take out your wallet and short-circuit their impact on you.

💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.

4. Shopping with a Plan

Of course you can’t always avoid spending triggers. We all have to shop sometimes. But here’s how to stop overspending: Create a shopping list, and stick to it. That’s one way to spend wisely.

For example, going grocery shopping may be easiest to do right after work. But that time of day may also coincide with when you’re ravenous. Hungry shoppers, research shows, tend to buy more non-essential items.

5. Finding It Cheaper

There are times when you’ll choose to spend money on specific purchases. Comparison shopping may help you cut back on expenses since you may be able to find the item cheaper elsewhere. Try these tips, too:

•   Try couponing and discount codes. There are many sites that can help, such as Coupons.com and Retailmenot.com.

•   Join a warehouse or wholesale club. These stores can be cheaper than your local supermarket. Are the quantities too big for your household? Share them with friends and split the cost.

•   Shop where you get rewards that lower your costs. Loyalty can pay off.

6. The 30 Day Rule

Want another way to avoid overspending? Before you purchase something, take some time to think it over, rather than giving in to impulse buying.

Studies show that activities that provide instant gratification, such as impulse shopping, activate feel-good chemicals in the brain, according to the Cleveland Clinic. But that purchase could come at the expense of your financial standing. How to avoid that:

•   If you see an item of significant expense that triggers a “gotta have it” feeling, put a note in your calendar for 30 days later. Write down the item, the price, and where you saw it.

•   When that date rolls around, if you still feel you must have the object of your affection, you can decide to get it. But there’s a very good chance that your sense of urgency will have passed. That can be a way to stop spending money.

7. A No-Spend Challenge

You can gamify your spending to help you save. Try a no-spend challenge; you may want to have a friend or family member join you to make it more fun and help you stay accountable.

In a no-spend challenge, you typically pick a period of time during which you will only buy essentials. One popular option is a No-Spend September. Or you might declare that you won’t buy any fancy coffees for a week and put the money saved toward debt. Then, the next month, you could not buy any personal care items that are luxuries rather than necessities.

Recommended: 15 Creative Ways to Save Money

8. Using Cash Instead of Credit

When you swipe or tap a credit card, it can feel almost as if you aren’t spending money at all. But of course you are, and what you spend will accrue high interest if you don’t pay it off promptly and in full.

However, if you instead commit to using cash or a debit card to pay for purchases as often as possible, you can only really spend what you have. This can help you be more in touch with your money and avoid splashing out on random unplanned purchases, whether that’s a daily fancy iced coffee or a new wristwatch you stumble upon at the mall. (Of course, sometimes life happens, you make an error, and spend more than you have. That’s where overdraft protection can come in handy.)

9. Setting Up Automatic Savings Transfers

Many people overspend because they see money in their checking account, feel flush, and go shopping. But then, when it’s time to fund your savings (whether for summer vacation or the down payment on the house), you don’t have enough cash.

That’s why the habit of paying yourself first is a good one, and automating savings by setting up recurring transfers from your checking account to savings can be valuable. It can be wise to have an amount (20% of your paycheck is recommended by many financial experts, but even $25 is a start) whisked out right after your paycheck hits.

This can help you save regularly and fund your financial goals; you can even set up separate savings vaults for different goals.

10. Focus on Value vs Price

Here’s a smart way to think about your spending: Price is what you pay, and value is what you get. So if you spend $300 on a pair of shoes but you don’t wear them often or they fall apart quickly, you haven’t gotten good value for the price.

This is not to say that higher-priced items are never worth the cost. If you pay $300 for a pair of shoes that are top quality, last for years, and can be worn often, you’ve gotten great value. By thinking of value instead of price, you can avoid overspending, whether that means paying too much for an item that isn’t worth it or else buying a bargain-priced product that doesn’t deliver.

11. Reduce Dining Out

Dining out can be a fun way to socialize and enjoy food you couldn’t (or wouldn’t) make at home. But the cost can really add up and empty out your checking account. The average monthly spend dining at restaurants in 2024 was $191 vs. $166 in 2023, according to data from US Foods.

To save some cash, consider meeting friends for, say, a walk in the park or a free day at a local museum instead of a pricey brunch out. Or you might create a recipe club with friends in which you try cooking new dishes together. To save money when dining out, try tricks like skipping high-priced cocktails or splitting a few appetizers instead of ordering main courses.

12. Cancel Unnecessary Subscriptions

Comb through your credit card charges carefully, and you may discover that you are paying every month for subscriptions that you’ve forgotten about or aren’t getting good value from. That language app you signed up for before last year’s trip to Spain may still be charging you even though you haven’t opened it in months. You could live without it and keep that money. Or you might save on streaming services because you realize you actually aren’t watching one or two and can cancel them.

Recommended: How to Make Money Fast

5 Factors That Contribute to Your Spending Problem

As you work to stop overspending money, you may want to consider and avoid some of the things that can trigger you to dole out too much cash.

1. Social Media

As you scroll on Instagram, TikTok, and other platforms, you are likely to be exposed to dozens of influencers and offers that can encourage you to buy things you never previously knew about or wanted. Recognize that social media can encourage you to buy items (from kitchen gadgets to gummy candy) that you would never otherwise buy just because you’re a captive audience for clever marketing.

One way to fight back? It may be helpful not to link your credit card to your social media accounts to minimize the possibility of overspending.

2. Emails and Text Messages

Here’s another way your digital life can contribute to overspending: If you get emails or text messages heralding new products, sales, and other offers, it can trigger you to buy.

For example, if your favorite home design retailer sends you a message saying their most popular throw pillows are almost sold out, that may get you to buy. Unsubscribing from these marketing messages can be a budget-wise move.

3. Retail Therapy

Many of us shop as a pick-me-up. If you’re having a bad day at work, had a fight with your significant other, or are stressed about almost anything, hitting some stores can be a welcome distraction. However, this can also lead you to buy things that you neither need nor craved before you set foot inside the shop.

Recognizing what triggers retail therapy can help you break a bad spending habit. Or you can try the tactic of leaving your credit cards at home when you go browsing at boutiques.

4. FOMO

FOMO stands for “fear of missing out,” and it can drive a lot of impulse purchases. If your friend says you must try a pricey new restaurant in your neighborhood or your coworker suggests a life-changing hairstylist, you might feel as if, yes, you must spend money on these things. It can make you feel as if you are part of the in-crowd or “keeping up with the Joneses.”

Understanding this FOMO spending dynamic can be a major step toward stopping this kind of overspending.

5. Lifestyle Creep

Lifestyle creep occurs when, as you earn more, you spend more. Many people think that getting, say, a 10% raise is license to go spend 10% more. However, this can just keep your finances at a baseline level rather than helping you build wealth and reach longer-term goals.

As your income climbs, it can be wiser to raise your debt payments or put more in a high-yield online savings account rather than heading to the mall to celebrate.

The Takeaway

While it’s not possible to stop spending money altogether, adopting a few smart habits — such as budgeting, understanding your spending triggers, and shopping with a list — could help you take control of your money and spend less.

The right banking partner can help with budgeting, tracking your spending, and putting your money to work for you.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What is it called when you can’t stop spending money?

There are various terms used to describe the issue of spending too much, such as compulsive shopping, impulsive shopping, shopping addiction, and pathological buying.

Is overspending a mental disorder?

Sometimes called money dysmorphia or money disorder, overspending may be considered a psychological disorder. It involves a person being preoccupied with money, spending it, and financial status. It can trigger feelings of anxiety and inadequacy. In addition, compulsive shopping can be considered a form of obsessive-compulsive or impulse-control disorder. Working with a qualified therapist can be helpful in managing the psychological reasons for overspending.

How much is too much spending?

There is no set amount that equals too much spending. Rather, it occurs when spending negatively impacts your financial and personal life. If you can’t stick to a budget, are burdened by debt, or find that your preoccupation with shopping interferes with your work or relationships, then your spending could be excessive.

How do I stop the cycle of overspending?

You can stop the cycle of overspending in a variety of ways, including creating and sticking to a budget, planning your purchases (whether a big-ticket item or just weekly groceries), using cash, and going on a spending freeze.

What is the root cause of overspending?

Overspending has various causes. It could be due to boredom, lifestyle creep, FOMO (fear of missing out), and wanting to reward oneself or boost one’s mood, among other reasons.

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Determining a good monthly retirement income isn’t one-size-fits-all. However, many financial experts suggest couples should aim for around 80% of their pre-retirement income to maintain a comfortable lifestyle. If you earn $100,000 in your final working years, for example, you’ll need around $80,000 annually or $6,667 monthly in retirement.

You might also consider the average retirement income for a couple. According to the U.S. Census Bureau, the median household income for retired couples aged 65 and over in 2023 was $84,670 per year, or about $7,056 per month.

The exact monthly income you and your spouse or partner need, however, will depend on several factors, including your expenses, age, health, and desired lifestyle. Below, we explore these key considerations to help you estimate your ideal monthly retirement income and explore where that money might come from.

How Being a Couple Affects Your Income Needs

Being part of a couple can significantly impact retirement income needs, making it different from retirement planning as an individual.

While some expenses may double — such as food, travel, and health insurance — others can be shared, leading to cost savings. For example, housing, utilities, and transportation often remain similar whether supporting one person or two. That means a couple may not need twice the income of a single retiree to maintain a comfortable lifestyle.

That said, couples typically need to plan for a longer period of retirement, since one partner generally outlives the other. This requires careful long-term planning to ensure both partners are financially secure throughout retirement.


💡 Quick Tip: Want to lower your taxable income? Start saving for retirement with a traditional IRA. The money you save each year is tax deductible (and you don’t owe any taxes until you withdraw the funds, usually in retirement).

What to Consider When Calculating Your Monthly Income

There are many misconceptions about retirement spending. Some couples assume that their expenses will drop significantly after retiring, but that’s not always the case. Here are some key factors to consider when calculating your monthly income needs.

Spending May Not Be as Low as You Think

Many couples anticipate that their living costs will go down after retirement, since they’ll spend less on commuting, professional clothing, and lunches out. Expenses like payroll taxes for Social Security and retirement account contributions also go away after retirement. However, these savings can potentially be offset by increased spending in other areas, like health care, travel, leisure activities, gifts for grandkids, or home renovations. Retirees may also find themselves spending more on hobbies and dining out as they have more free time.

It’s important to calculate your current monthly expenses and then consider which ones may go down or up when you stop working to get an accurate sense of your monthly income needs.

Spending Doesn’t Stay Steady the Whole Time

It’s a common retirement mistake to assume spending will be fixed once you enter the retirement phase of your life. In reality, spending patterns typically take on a U-shaped curve over the course of retirement. Expenses tend to be highest in the first several years, due to increased spending on travel, hobbies, and activities couples may have put off while working. Spending then generally declines as retirees get older and less active, only to rise again due to higher health care costs and (possibly) long-term care expenses. You’ll want to be sure your retirement income plan accounts for all of these different phases of retirement.

Expenses May Change When One of You Dies

When one spouse passes away, the surviving partner often experiences a significant shift in their financial needs. Some expenses like housing may stay the same, while others — such as food, travel, or entertainment — may decrease. In addition, the surviving spouse might lose one source of Social Security or pension income, potentially straining finances. As a result, it’s critical to plan for income flexibility.

Essential vs Discretionary Expenses

When calculating your monthly retirement income needs, it’s important to differentiate between essential and discretionary expenses.

•   Essential expenses are the non-negotiable costs necessary to maintain your basic lifestyle and standard of living in retirement. Examples include housing, utilities, groceries, healthcare, and transportation.

•   Discretionary expenses are optional expenses that enhance your quality of life but are not strictly necessary. These can be adjusted or reduced if your income fluctuates or unexpected costs arise. Examples include: travel/vacations, entertainment, dining out, hobbies and recreation, charitable donations and gifts, and subscriptions and memberships.

By separating needs from wants, you can develop a realistic budget, adjust discretionary spending if your income fluctuates or unexpected costs arise, and increase your chances of a financially secure and enjoyable retirement.

Planning for Inflation and Health Care Costs

Inflation significantly impacts financial needs in retirement by eroding the purchasing power of your income and savings over time. As prices rise, the same amount of money buys fewer goods and services, potentially forcing you to withdraw more from your savings each year to cover expenses. It’s crucial to factor in a realistic inflation rate when calculating retirement needs.

Health care costs also tend to increase over time, both due to inflation and the fact that medical needs generally increase as you get older. Without proper planning, you may find that premiums, out-of-pocket expenses, and services not covered by Medicare can deplete your retirement savings.

Common Sources of Income in Retirement

Building multiple reliable income streams can help ensure a stable and sustainable retirement. Here are the most common income sources for retirees:

Social Security

For many American couples, Social Security is a key retirement income stream. In May 2025, the average Social Security monthly check for retired workers was $2,002.39, according to the Social Security Administration’s (SSA) Monthly Statistical Snapshot. For a couple, this could amount to approximately $4,005 per month. However, benefits vary based on your earnings history and the age at which you start claiming.

Retirement Savings

Retirement savings accounts, such as 401(k)s and IRAs, provide additional income for couples after they leave the workforce. Financial planners often recommend using the 4% rule as a guideline for drawing down your retirement savings. This guideline is based on a 30-year retirement and designed to help ensure you don’t outlive your savings.

To follow the 4% rule, you add up all of your combined retirement savings, then aim to withdraw 4% of that total during your first year of retirement. For example, if you have $1 million in savings, you would withdraw $40,000 per year or around $3,333 monthly. The following year, you would adjust that 4% to account for inflation. So if inflation was 2%, you would give yourself a 2% raise.

While the 4% rule can be a helpful guideline, you may need to adjust your spending rate based on your situation, age, and the performance of your investments.

In addition, as you save for retirement, a retirement calculator can give you a sense of how much you should be regularly putting toward retirement savings to meet your goals for those later years.

Annuities

An annuity is a financial product sold by insurance companies that can offer an income stream in retirement and/or increase retirement savings. With an income annuity, you make a lump sum investment then receive a payout for life or a set period of time. With a tax-deferred annuity, you accumulate tax-deferred savings, while also having the option to receive income in the future. This makes annuities attractive for couples looking for stability after retirement.

Other Savings

The other savings category includes money you have in savings accounts, certificates of deposit (CDs), and nonretirement brokerage accounts. These funds can serve as backup or supplemental income. While they don’t offer the tax advantages that come with retirement accounts, they provide liquidity and flexibility, which can be helpful for managing unexpected expenses.

Pensions

A pension is an employer-based plan that pays out a specified amount of income on a regular basis (typically monthly) to an employee after they retire. It’s generally funded by the employer during the employee’s working years, and those funds are usually invested so they can grow over time. If a worker stays with that employer for a certain period of time, they are eligible to receive payouts from their pension plan when they retire.

Pensions are not as commonly offered as they used to be, however, having largely been replaced by 401(k)s and other defined contributions plans. If neither you nor your spouse have ever worked for a company that offered a pension, you won’t be able to rely on this as a source of income after retirement.

Reverse Mortgages

A reverse mortgage enables eligible homeowners to tap their home equity to earn income in retirement. The most common type of reverse mortgage is called a Home Equity Conversion Mortgage (HECM). HECMs allow homeowners aged 62 and older to borrow against the equity in their home without making monthly payments. The loan is typically repaid when the borrower sells the home, moves out permanently, or dies.

While reverse mortgages can boost monthly retirement income, they have some significant downsides, including fees and interest, which are added to the loan balance each month. And either you or your heirs will eventually have to pay the loan back, usually by selling the home. It’s important to consider the pros and cons carefully before taking out a reverse mortgage.

How to Plan for Retirement as a Couple

Planning for retirement as a couple is an ongoing process that ideally begins decades before you actually retire. Some of the most important steps in the planning process are:

•   Figuring out your target retirement savings number

•   Investing in tax-advantaged retirement accounts

•   Paying down debt

•   Deciding when you’ll retire

•   Deciding when to take Social Security benefits

•   Developing an estate plan

•   Planning for long-term care

Working with a financial advisor can help you to create a plan that’s tailored to your needs and goals.

Recommended: Can a Married Couple Have Two Roth IRAs?

Strategies for Generating Passive Income in Retirement

Passive income helps reduce reliance on withdrawals from retirement accounts, allowing your savings to last longer. Here are two effective strategies for couples:

Rental Properties and Real Estate Investment

Investing in real estate, such as single family rentals or duplexes, can generate steady income in retirement. While property management may require effort, many retirees hire managers or invest in Real Estate Investment Trusts (REITs) to avoid day-to-day responsibilities, making this a type of passive investment.

In addition to cash flow, investing in real estate can add diversification to your portfolio and may come with tax benefits. As with any other investment, however, there are potential risks with passive real estate investing. For example, there’s a chance that property values can decline or an investment doesn’t earn the expected profits.

Dividend Stocks and Interest-Bearing Accounts

Dividends and interest can provide a modest — but steady and reliable — cash flow in retirement.

•   Dividend stocks are shares in companies that distribute a portion of their profits to shareholders, typically on a quarterly, semiannual, or annual basis. Many retirees invest in established “blue chip” companies known for consistent payments. These investments can offer both income and potential portfolio growth. However, they also carry market risk, as stock values fluctuate with economic conditions.

•   Interest-bearing accounts, such as high-yield savings accounts, CDs, and money market accounts, provide a low-risk way to generate income. These accounts pay interest on deposited funds and are typically backed by FDIC insurance, offering a high level of safety. However, returns are often lower than what you could earn by investing in the stock market over the long term.

Maximizing Social Security Benefits

Technically, anyone who is employed for at least 10 years is eligible to begin taking Social Security benefits at age 62. But doing so reduces the benefits you’ll receive. To get the highest possible payment, you and your spouse would need to delay benefits until age 70. At that point, you’d each be eligible to receive an amount that’s equal to 132% of your regular benefit. Whether this is feasible or not can depend on how much retirement income you’re able to draw from other sources.

If one of you has earned significantly less than the other, you may be able to maximize Social Security benefits by taking advantage of spousal benefits. This benefit allows the lower-earning spouse to receive up to 50% of the higher-earning spouse’s Social Security benefits once they reach full retirement age (67 for those born in 1960 or later). However, the higher earning spouse must already be receiving benefits.

The Takeaway

A good monthly retirement income for a couple in 2025 will depend on a variety of factors, but you might aim to earn around 80% of your current monthly income. This amount can likely cover essential and discretionary spending while accounting for inflation, taxes, and unexpected health care costs.

To make sure you’ll have sufficient income in retirement, it’s important for couples to take a holistic view of their finances — combining Social Security, retirement savings, pensions, other savings, and passive income sources — to build a sustainable plan.

With smart planning, clear communication, and diversified income strategies, you and your life partner can enjoy a secure and fulfilling retirement together.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

FAQ

What is the average retired couple income?

The median household income for retired couples aged 65 and over is $84,670 per year, or about $7,056 per month, according to 2023 data from the U.S. Census Bureau. This includes income sources like Social Security, pensions, savings, and investments. However, actual income can vary widely depending on lifestyle, geographic location, and retirement planning.

What is a good retirement income for a married couple?

A good retirement income for a married couple is typically around 80% of their pre-retirement income to maintain a comfortable lifestyle. For example, if a couple earned $100,000 annually before retiring, a target retirement income would be about $80,000 per year.

This rule of thumb assumes that some expenses (such as payroll taxes for Social Security, retirement account contributions, and work-related expenses) go away after retirement. However, some couples may find that their expenses don’t significantly decline if they travel extensively or take up expensive hobbies or leisure activities.

How much does the average retired person live on per month?

According to the U.S. Bureau of Labor Statistics 2023 Consumer Expenditure Survey, the typical household age 65 and older has monthly expenditures of $60,087. That breaks down to monthly spending of about $5,007 per month. However, many factors can impact a particular household’s spending and the amount of money they need to feel secure.

How can couples manage retirement income tax efficiently?

Couples can manage retirement income tax efficiently by diversifying their sources of income in retirement and planning withdrawals strategically.

When you’re saving for retirement, you might use a mix of tax-deferred retirement accounts, like traditional Individual Retirement Accounts (IRAs) and 401(k)s, and accounts that allow tax-free withdrawals in retirement, like Roth IRAs. This allows for greater control over taxable income.

Once you retire, consider withdrawing funds strategically. For example, if your taxable income is low in a given year, you might withdraw from tax-deferred accounts. If your income is high, you may be better off pulling from tax-free sources like a Roth IRA.

What are some common mistakes couples make when planning for retirement?

Common mistakes couples make include underestimating healthcare costs, failing to plan for longevity, and relying too much on one income source (like Social Security). Many couples also overlook inflation’s impact on fixed incomes and/or retire too early without sufficient savings.

Proper planning, ongoing financial reviews, and professional guidance can help avoid these pitfalls and ensure a secure retirement.

About the author

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.