Stop Overspending in 2025! Emma Edwards Shares Money Psychology Tips to Save More

By Molly Benjamin, Founder of Ladies Finance Club

Listen to the full podcast here.

If you've ever found yourself staring at your bank account, wondering where all your money went, you're not alone. Overspending is a common struggle, but the good news? You can break the cycle and start making smarter money moves. In this episode of Get Rich, I sat down with Emma Edwards, founder of The Broke Generation and a certified financial behaviour specialist, to uncover why we overspend and how to stop it in 2025.

The Psychology Behind Overspending and Emotional Spending Habits

Emma explains that as humans, we’re simply not wired to delay gratification. Our brains are designed to seek out instant rewards, which is why resisting impulse buys can feel nearly impossible. But it’s not just our biology working against us, modern technology has made spending easier than ever. With a single tap, we can make purchases online, often without even registering the financial impact. This is a classic example of consumer behaviour driven by ease and accessibility.

Emma highlights the role of invisible spending, where tapping your card or using digital wallets makes transactions feel less “real.” Without the physical act of handing over cash, it's easy to lose track of how much we’re actually spending. And let’s not forget the relentless social media influence we face daily, with targeted ads and influencer culture nudging us to spend impulsively.

How Social Conditioning Shapes Spending Habits and Financial Goals

One particularly eye-opening discussion was about how women, in particular, have been conditioned to spend in ways they don’t even realise. Emma points out that while both men and women spend similar amounts on discretionary purchases, women’s spending often stems from societal conditioning. Beauty products, fashion trends, and self-improvement tools are marketed as essential, making it harder to distinguish between what we genuinely want and what we’ve been told we need.

Her advice? Challenge the idea that spending equals self-care. Instead of buying into the “new year, new me” shopping trap, focus on financial goals that align with long-term financial stability.

The Biggest Spending Traps in 2025 and How to Avoid Them

With a new year comes fresh financial challenges, and Emma predicts a few key spending traps to watch out for:

• The "Higher Self" Spending Trend – The idea that becoming the best version of yourself means spending money on new clothes, fitness gear, or expensive self-improvement courses.
• Social Media FOMO – The constant exposure to influencer lifestyles can make us feel like we need to buy things to keep up.
• Cost of Living Pressures – Rising expenses make it easy to justify unnecessary purchases as “deserved” treats.

Her solution? Separate your goals from consumption. Want to improve your money management in 2025? Focus on building sustainable habits, not buying a $200 wellness planner. Looking to level up financially? Start small by cutting out impulse buys instead of aiming for an unrealistic zero-spending goal.

Practical Strategies to Break the Emotional Spending Cycle

Emma suggests using a laddering technique to dig deeper into your financial intentions. Often, we set vague goals like “save more” or “spend less” without really understanding what’s driving our behavior.

The laddering technique involves asking why repeatedly until you reach the core motivation behind your financial decisions. For example, if your goal is to save $10,000, ask yourself why that number is important. If the answer is, “Because I read somewhere that it’s a good savings goal,” dig deeper, why is it a good goal for you? By continuing this process, you uncover the emotional drivers behind your financial habits, whether it’s a fear of financial insecurity, a desire for freedom, or breaking a cycle of past financial mistakes.

This structured approach to goal-setting ensures that you’re not just aiming for financial stability but also implementing the necessary behavioural shifts to sustain it. As Emma highlights, financial success isn’t about restriction, it’s about aligning your habits with a clear and meaningful vision for your future.

Best Budgeting Strategies for Financial Stability and Money Management

One of the biggest reasons people fail at budgeting? They follow a rigid system that doesn’t fit their lifestyle. Emma emphasises that there’s no one-size-fits-all approach to budgeting strategies. Some people thrive on detailed spreadsheets, while others prefer a more flexible method. The key is to tailor your money management strategy to your natural habits.

She also recommends the Pay Yourself First method, automating savings and fixed expenses first, then spending what’s left guilt-free. This removes the stress of budgeting while ensuring you’re consistently working toward financial stability.

Final Takeaway: Small Steps for Long-Term Financial Independence

If you’re feeling overwhelmed, remember that financial literacy is built over time. Emma’s biggest piece of advice? Small, consistent changes lead to big results. Start by tweaking one habit at a time, whether it’s checking your bank balance more often, setting up an auto-transfer to savings, or simply pausing before making a purchase.

Overspending doesn’t have to define your 2025. With the right mindset and practical strategies, you can take control of your finances, reduce stress, and build long-term financial independence. Let’s make this the year we stop wondering where our money went and start feeling confident about where it’s going!

Want more money wisdom? Follow Emma Edwards at @the.brokegeneration on Instagram and check out her book, Good With Money (you can’t miss the bright yellow cover!). And if you loved this episode, hit subscribe and let’s get rich together!

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