Managing money well doesn’t mean depriving yourself of everything or living with the bare minimum, but rather having control and awareness of what and why we spend. Many times we feel like we can’t make it to the end of the month, that our paycheck disappears “without knowing how,” or that we can’t manage to save despite our efforts. One of the keys may lie in unnecessary expenses.
But how do we identify them? What’s the difference between an unnecessary expense and an occasional indulgence? In this article, we give you some clear and realistic guidelines to review your financial habits and make healthier decisions.
What is an unnecessary expense?
It’s the kind of expense that doesn’t respond to a real need, doesn’t have a positive impact on your well-being, or might even be replacing something you already own or don’t use. These are expenses that, when eliminated or reduced, don’t affect your quality of life and can even improve it.
It’s not always easy to spot them because many times we’ve normalized them or make them out of habit, impulse, or emotions like stress or boredom.
1. Make an honest review of your expenses and identify the unnecessary ones
The first step is knowing where your money goes. You can do this with a personal finance app, an Excel sheet, or simply by reviewing your bank statements from the past month. Categorize your expenses into groups:
- Housing (rent, mortgage, utilities)
- Transportation
- Food
- Health
- Leisure and entertainment
- Personal shopping
- Subscriptions and services
- Miscellaneous or unexpected expenses
Tip: Do this review once a month to identify patterns and opportunities for improvement.
2. Ask yourself: do I need it or do I just want it?
It’s not about never treating yourself, but about recognizing when you’re buying on impulse or out of habit. A good strategy is to apply the 24-hour rule: if something isn’t urgent, wait a day before purchasing it. In many cases, by the next day, it doesn’t seem so necessary.
Examples of common unnecessary purchases:
- Multiple food delivery orders per week.
- Clothes you buy “just in case” and don’t use.
- Duplicate items (several reusable water bottles, similar accessories, etc.).
- Purchases driven by promotions or discounts rather than real need.
3. Review your active subscriptions to avoid unnecessary expenses
With so many digital services, it’s easy to lose track of how many subscriptions you’re paying for each month. Sometimes we continue paying for platforms we haven’t used in a while, or apps that automatically renewed without us noticing.
Review:
- Streaming platforms
- Sports, meditation, or productivity apps
- Cloud storage services
- Programs you used only once
Tip: Set a reminder in your calendar to review your subscriptions every two to three months.
4. Spot your “small spending”
These are small, unnecessary daily or weekly expenses that seem harmless, but when added up, represent a significant part of your budget. Examples:
- Coffee outside the house
- Snacks and drinks from vending machines
- Impulse purchases in stores or online
- Bank fees for not planning payments
A simple calculator can help: if you spend €3 a day on coffee from Monday to Friday, that’s €60 a month. Would you like to have that money available for something else?
5. Have a clear savings goal
Saving just for the sake of saving can be unmotivating. On the other hand, when you have a concrete goal (a trip, a course, an improvement for your home), it’s easier to decide which expenses are unnecessary.
Define your goal and associate it with a timeframe and an amount. This way, you can clearly see what moves you away from it and what brings you closer.
An example: “I want to save €500 in the next 3 months to upgrade my laptop”; this means saving about €40 per week. Can I stop ordering food twice a week and bring a lunchbox? That’s the difference.
6. Be flexible and realistic
It’s not about keeping strict control or living with guilt. Financial health also means allowing yourself occasional treats, as long as they’re within your means and don’t interfere with your priorities. Setting a monthly budget for leisure or personal shopping can help you enjoy without overspending.
Key to peace of mind
No es tracta d’eliminar tot el que t’agrada, sinó de gastar de manera més conscient, alineada amb els teus objectius i valors. Fes petites revisions cada mes, ajusta el que calgui i veuràs com comences a tenir més control (i menys estrès) sobre els teus diners. Perquè tenir salut financera no significa tenir més, sinó saber utilitzar el que tens de manera intel·ligent. Cura amb les despeses innecessàries.