A Financial Planner Explains the Sneakiest Places People Tend to Overspend

Overspending can significantly impact your budget. However, more often than not, it’s not one big splurge, but several smaller purchases, that quietly derail a budget.

Understanding where budgeting tends to go astray is the first step in learning how to save money effectively. Once you’re aware of the sneakiest places you tend to overspend, you can start making intentional changes that get you back on track.

‘The ostrich approach’ makes your money disappear

When thinking about cutting back on spending, you might consider skipping out on takeout or a few shopping trips. But some of the most overlooked money drains aren’t one-off expenses like these.

“Some of them wind up being in their streaming services and charges associated with their technology,” said Eric Brotman, CFP® professional and CEO at BFG Financial Advisors. “Some of them are places like insurance, where a lot of consumers don’t understand what they own, and they’re kind of over-insuring for little things. A lot of people are also overpaying on taxes because they’re not doing the right kind of tax planning.”

Expenses like monthly subscriptions, excessive insurance policies, and tax inefficiencies tend to fly under the radar because they’re often baked into everyday life. Unlike impulse purchases, they’re recurring or embedded in essential systems, making them harder to spot and cut without a closer look.

“A lot of this comes down to what I call the ostrich approach, burying your head in the sand and not being aware,” Brotman said. “I think most of us overspend by accident. And so the biggest mistake I see is people spending whatever comes in from their paycheck and hoping there’s money left at the end of the month so that they can save some.”

Ways to regain control of your spending

Review your statements

A smart starting point is reviewing your bank statements and credit card balance regularly. Look at your statement balance each month to understand where your money is going and if you need to adjust your spending.

Track expenses

Tracking hidden expenses is key to gaining control over your finances. Using one of the best budgeting apps such as Monarch Money or YNAB can make these costs visible by automatically categorizing transactions and highlighting patterns over time. When you can see exactly where your money is going, it becomes easier to make informed decisions and adjust your spending habits before things get out of hand.

“One way is to use personal finance software that will download all of your expenses, categorize them, and help you see trends,” said Brotman. “I’ve been using that religiously for a long time, and I think it helps me find where there are either sudden changes or where there’s a trend going the wrong direction.”

Other tools like Rocket Money can also help identify and cancel unnecessary subscriptions, a common outcome of lifestyle creep. Catching those creeping costs early can make a big difference over time, especially if they’re draining money you could be saving or investing.

Compare budgeting apps

Prioritize savings

It’s easy to let discretionary spending eat away at your paycheck, especially when you only think about saving what’s left over. But a better strategy is to treat savings like a bill you pay to yourself first.

When your bills and savings contributions are set on autopilot, you can make consistent progress toward your goals before the rest of your money is spent on non-essentials. This strategy helps reduce the mental load of money management while preventing late fees, missed payments, and overdraft fees.

“I advise everybody to pay themselves first,” said Brotman. “Then, no matter what your income is, take the first 10 or 15% or whatever that number is for you, and automate your savings and your investment.”

Regaining control of your budget

While sneaky overspending can derail your budget, the key to regaining control is awareness.

Achieving your savings goals, paying bills on time, and still having discretionary funds is possible, but it requires consistency and a proactive approach. Regularly reviewing your finances and making adjustments as needed ensures that you’re staying on track to meet both short-term and long-term financial goals.