No matter how hard you try, there will be months when you overspend. You look at your budget and realize that you didn’t do a good job staying on track.

While it’s okay to make mistakes every now and again, it should be your goal to stay within your budget at all times. Doing so goes a long way in helping you avoid long-term financial trouble.

It all starts with knowing why you’re overspending. Here are three reasons this could be causing you trouble:

  • Keeping up with others: An example of this is buying a new car just because someone in your community did so. You set your budget based on your income and expenses, so you can’t let someone else dictate what you do.
  • Credit card use: With cash, you can only spend as much as you have. With a credit card, it’s easy to go overboard to the point of spending money you can’t afford to quickly repay.
  • You came into a lump sum of cash: From a work bonus to a tax refund, many people look at this as a reason to spend like crazy. It’s okay to treat yourself, but don’t overdo it.

If your overspending has become a major problem, such as extreme amounts of debt, take a strong look at what you have done in the past and the steps you must take in the future.

This could lead you to learn more about bankruptcy, as it’s one of the better ways to eliminate debt and start fresh. It may not be necessary right now, but it could help save you from even more trouble down the road.