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Online shopping can be a fantastic way to save time and money. It’s convenient. Shipping is often free. And, you can use cash back apps and price comparison tools to find the best bargains. Sadly, the flip side to that convenience is that it’s extremely easy to overspend and lose track of your purchases.

Many Americans (around 60%) do more than half of their shopping on the internet. However, for some, online shopping brings additional stress. A recent survey from BadCredit.org showed more than 4 in 10 people want to reduce the amount they spend online.

Do you spend more or less than the average American?

The BadCredit report shows the average American spends $513 every month online. It also highlighted a worrying disconnect between perception and reality, spending-wise. The survey participants overestimated their online spending by over $100.

Here’s the BadCredit breakdown of Americans’ spending estimates:

• Food and beverage: $167
• Clothes: $104
• Consumer electronics: $94
• Shoes: $80
• Self care: $53
• Home goods: $46

Know how much you spend

Look through your recent transactions to get a realistic picture of your spending. If you spend around $500, you’re in line with many other Americans. But that only tells us so much because our financial situations are all different.

What matters is how your spending fits into your wider financial picture, not the average American. To understand that, compare your online spending against your budget.

If you don’t have a budget, now might be a good time to make one. It doesn’t have to be complicated. A budgeting app can help if you’re not sure where to start.

Essentially, budgeting is about working out where your money goes, deciding if that’s working, and setting some targets around different categories of spending.

I spent a long time putting off making a budget. When I finally did it, I wished I’d done it sooner. My budget means I am in control of my money — whether I’m spending online or in person. On top of that, it helps me feel less guilty about spending, because I know exactly what my limits are in each area of life.

How online shopping can save you money

The best thing about shopping online is that price comparisons are a doddle. It is also easy to find coupons and special offers. You don’t even have to visit lots of online stores, because cash back apps like Honey or Rakuten will do the work for you. My browser extensions tell me the price history and whether there are better deals out there.

I also wait for big sales (such as Black Friday or Amazon Prime Day) when I want to buy big-ticket items. Shopping online means you don’t have to fight through crowds of people to snag some of the best bargains. Lots of online stores will highlight special deals in the run-up to sales.

It’s worth watching out for shipping and returns policies, as some of them aren’t as consumer-friendly as they used to be. If you’re paying $10 for shipping and only shaving a few dollars off the product’s cost, you might be better off going to the store.

What to do if you’re worried about your online shopping habits

The biggest difficulty with shopping online is that it doesn’t feel real. Cash already feels like a thing of the past in a lot of situations. But when you shop on the internet, it’s another step removed from, say, swiping your card in the store. That makes it way too easy to accidentally rack up a balance on your credit card.

Here are some ways to keep your online spending under control.

• Track your online spending. Check in with your spending at least once a week so you know where your money goes. If you’re worried about overspending, use lists and try to stick to your budget.
• Keep a laser focus on what’s essential. Online shopping makes it super easy to give in to promotions and buy things we later regret. Before you hit the “Buy” button, ask yourself if this is something you need.
• Wait a few days before you buy. Another way to avoid impulse purchases is to leave items in your cart for a little while. If you still want them after mulling it over, they will still be there.
• Don’t store your credit card information. Online stores want to make it as easy as possible for you to spend. Forcing yourself to enter your payment details each time adds a little friction to the process.

Key takeaway

Shopping online isn’t inherently good or bad. What matters is whether you are living within your means and getting the best value from your hard-earned cash. If you’re worried about overspending, first take some time to review where your money goes. That way you’ll know if you need to make cuts and where you might make them.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Emma Newbery has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.