Forget the latest restaurant opening or how dreamy Adam Brody is in Nobody Wants This: the one topic we can’t stop talking about at work, at home and in our friendship groups is money.

When our finances feel tighter than ever and average supermarket prices are now 2% more expensive than a year ago, there are plenty of questions at the forefront of our minds. How can we cope with the rising cost of living? Will we ever be able to save for a deposit for a home? How do we afford to keep living our daily lives?

It’s an anxiety that shows no signs of going away. New data from financial institution MoneyPlus shows that overcommitment is the single biggest reason for people getting into debt, with 32% of its customers citing it as the primary reason for their debt.

Put simply, overcommitment is the idea that your outgoings exceed your income. Perhaps you’re relying heavily on credit cards, buy-now-pay-later schemes or simply end every month just about scraping by.

It’s an easy enough behaviour to get sucked into. It often starts out small: the allure of treating yourself to a new pair of shoes, a weekend getaway or the latest gadget. And who can blame us? The pandemic led to a sharp rise in sporadic ‘treat’ spending as a much-needed distraction, and now, amid global economic uncertainty, ‘doom spending’ has taken its place as our coping mechanism of choice. In a recent study by Credit Karma, 43% of millennials and 35% of Gen Zs admitted they doom spend to make themselves feel better – about the state of the world, how out-of-reach their dream lives seem and their own financial insecurity.

However, whether you’re someone who doom spends, overcommits or both, it’s important to remember that neither is a sign of financial failure; instead, it can be used as a wake-up call to re-evaluate your habits and priorities. 

Prioritise the essentials

When faced with financial overcommitment, the first step is a simple one: review your spending and get back to basics. Start by listing your essential expenses: housing, utilities, groceries, transportation and minimum debt payments. This exercise will highlight what’s non-negotiable and where your money needs to go first.

“Knowing your financial essentials and allocating for them is the cornerstone of responsible spending,” says Kate Dawkins, head of operations at MoneyPlus. “It’s easy to fall into the trap of prioritising wants over needs but reversing that order will help you make clearer choices.”

Then, once you’ve accounted for your essentials, see what’s left for discretionary spending. This category should include entertainment, dining out, hobbies and, yes, those small treats that can add up quickly if left unchecked. By structuring your budget this way, you’ll be able to see exactly how much you have available for non-essentials – and resist the urge to overspend.

Embrace the 24-hour rule for impulse buys

“Impulse spending is one of the biggest drivers of financial overcommitment,” says Dawkins. “One effective way to combat this is to implement a 24-hour rule. For any non-essential purchase over a set amount (like £50 or £100, but adjust this to your budget needs), wait a full day before making the final decision. This pause gives you time to reflect on whether you truly need or want the item.

“Impulse purchases are emotionally driven,” she adds. “By delaying the decision, you allow your rational side to weigh in, often resulting in a more thoughtful choice. If you still want the item after 24 hours, and it fits within your budget, go for it. If not, you’ve saved yourself from one more unnecessary expense.”

StepChange Debt Charity offers free and impartial advice to people struggling with debt. To get started visit stepchange.org and access the online debt advice tool, which is available 24/7. Debt advisors are available to support over the phone. Simply call 0800 138 1111.

Images: Getty