The majority of the population is unable to Save Money.
To save money, you have to approach your Financial Situation more realistically. If you are keen to inflate your Savings Account, the first thing you need to do is to identify your Budget and Expenditure. Improving your financial situation can also help people to reach Financial Freedom.
Why Can’t I Save Money?
You can not save money if your expenses are higher than your income. However, to save money, people need to do two things: to find a new side hustle or job to increase income and cut expenses.
Let’s discuss and identify the straightforward points behind the inability to save money!
1. Inability To Prioritise the Importance of Paying Off Your Debt:
Paying off your Debt as early as possible is the stepping stone to improve your Financial Situation.
If you spend your money on things that you don’t need and wait to pay off your debt, you may end up in a vicious situation.
Stop purchasing that 100th pair of jeans instead of putting more towards your debt!
Also, life is uncertain. Nobody knows the future. God forbid, what would happen if you lose your job or some unexpected expenditure pops up out of nowhere?
Thus, if you have the means to pay off your Debt now, then make it happen!
2. Despite Your Financial Situation, You’re Paying For Cable:
According to NPD Group, Inc., an American Market Research Company, the average monthly cable bill totals around $120. It is expected to escalate around $200/ month by the year 2020.
In that case, if you cannot afford the Cable Bill, you are not supposed to pay for it. In this way, you will be able to Save Money.
Instead, get hold of Digital Antenna and receive local channels for free!
3. Overusing Your Credit Card:
Using a Credit Card and not keeping track of the expenses is one of the blunders.
If you feel you overuse your Credit Card, cancel the Subscription right away before going into unnecessary debt.
Even if you do, work towards paying off your balance to avoid racking up interest charges and late fees.
4. Splurging On Unnecessary Items:
Splurging on unnecessary items is a massacre.
Just because someone else has a 100 inch 3D TV, Mansion, Nice Car, Gadgets, that doesn’t mean you should as well.
Stop drawing comparisons and keeping up with others.
Do you have any idea how the person is paying for it? Maybe they are making the purchases from their Savings, or maybe they are just putting everything on their credit card! Who knows?
Instead, chin up and be realistic with your financial situation and only purchase what you can truly afford!
5.Expensive Cell Phone Plans:
The majority of the population overpay for their Cell Phone Plans and end up with No Savings!
If you don’t have enough money to pay for it, go for a more affordable Cell Phone Option!
I wouldn’t suggest getting rid of your Cell Phone because it has become a necessity in today’s era!
6. No Budget:
If you don’t have a budget or no trackage of your expenditure, then Saving Money can be a harrowing task for you.
A Budget helps a Person or a Family manage their money better.
It also helps to pin-point the mistakes and anchor a problematic Financial Situation.
7. Expensive Cars:
According to statistics, an average American spends $482 on a New Car Payment and $362 on a Used Car Payment.
Shocking, isn’t it?
Quite a sorry state of an affair because people take out High-Interest Rate Loans to make their car payments.
Although it might sound affordable to some people, it’s still a lot of money for most people. If you add in Gas, Insurance, Taxes, Maintenance, and Registration Costs, the amount will escalate more.
If you are in a similar situation where you are spending too much money on your Car Expenses, STOP it today!
Always keep your Car Expenses less than 9-16% of your monthly income for it to be affordable!
8.Confusing “Wants” with “Needs”:
Most people confuse “Wants” with “Needs.” One of the prime reasons why people end up broke!
- Food & Water
- Cell Phones
- Plus Homes
- Gym Memberships
- Eating out at Restaurants
There’s a fine line between “Wants” & “Needs,” and you must recognize it!
If you are unable to offer the secondary things, you need to start chucking them off your Budget and your Life.
9. Post-Poning Savings:
Never remain in the delusion that you can start with Saving Money when you turn older!
Always start Saving as early as possible for your rainy days! It will also help you build good financial habits and prepare for a sound future.
10. No Goals:
One of the reasons that you can’t save money is that you have no goals in life.
People who have a fixed set of goals are 10x more likely to Save Money than people who do not.
In short, if you are ambitionless, then you may not be motivated to improve your future!
Pull up your socks and set goals TODAY!
11. You Don’t Believe In The Idea Of “Every Penny Counts”:
Every penny saved adds up to a big amount.
$100 saved each month can become $1,200 at the end of the year.
On the other hand, if you expend your money recklessly and put no effort into Savings, you will end up with Zero Dollars!
12. No Emergency Fund:
You certainly cannot Save Money if you don’t have an Emergency Fund or have no plan to create one!
According to Bankrate.com, 26% of Americans have no Emergency Fund! Plus, only 40% of families have enough in savings to cover three months of expenses!
Frightening! Isn’t it?
What if you lose your job?
What if there is a sudden arrival of a Medical Emergency?
In situations like this, the Emergency Fund can immensely help a person get through tough life parts.
13. Expenses Are Higher Than Income:
If your expenses exceed your income, it is quite evident why you are not making enough money!
Cut back on your expenses and improve your financial situation.
Keep a side-hustle and earn a passive income to inflate your Savings Account!