The Wall Street JournalThe Wall Street Journal

Why it’s now easier to underestimate your expenses and overspend

By Veronica Dagher

27 Mar 2023 · 4 min read

Editor's Note

Has your budgeting been a little off recently? The WSJ provides some useful insights into why we might be overspending and tips on how to avoid spending more than you should be.

Many people have a gap between what they think they spend and what they actually spend. This gap has widened recently as the financial and psychological effects of higher prices further strain people’s budgets.

Elevated inflation has rippled through American’s wallets for more than a year now. Some have cut back, while others have increased their spending to keep up. Credit-card balances were staying relatively flat for a while, but have jumped higher recently.

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