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 identify your Budget and Expenditures. Improving your financial situation can also help you reach Financial Freedom.
Why Can’t I SCan’toney?
You can not save Money if your expenses are higher than your income. However, to save Money, people need to do two things: find a new side hustle or job to increase revenue and cut expenses.
Let’s disLet’sand 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 improving your Financial Situation.
If you spend your Money on things you don’t need and don’t 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 lost your job or some unexpected expenditure popped 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, Pay your Cable:
According to NPD Group, Inc., an American Market Research Company, the average monthly cable bill totals around $120. It is expected to be around $200/ month by 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 ahold of Digital Antenna and receive free local channels!
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 immediately before incurring 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, or Gadgets doesn’t mean they should either.
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 account, or perhaps they are just putting everything on their credit card! Who knows?
Instead, chin up, be realistic with your financial situation, and only purchase what you can 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 get rid of your cell phone because it has become necessary today. No Budget:
If you don’t have a budget or track your expenditures, Saving Money can be a harrowing task.
A Budget helps a Person or a Family manage their Money better.
It also helps to pinpoint mistakes and anchor problematic financial situations.
7. Expensive Cars:
According to statistics, an average American spends $482 on a New Car Payment and $362 on a Used Car Payment.
It’s shocking, isn’t it? It isn’t a sorry state of affairs 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 even more.
If you are in a similar situation where you are spending too much Money on your Car Expenses, STOP it today!
For car Expenses to be affordable, they should always be less than 9-16% of your monthly income!
8. Confusing “Wants” with “Needs”:
Most people confuse it with “Needs.” This is one of the prime reasons why people end up broke!
Needs:
- House
- Food & Water
- Clothes
Wants:
- Cell Phones
- Plus Homes
- Gym Memberships
- Cable
- Eating out at Restaurants
There’s a difference between “Wants” and” Needs,” and you must recognize it!
If you cannot 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 rainy days. This 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 savcan’tey is that you have no goals in life.
People with a fixed set of goals are 10x more likely to Save Money than those without.
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 Be The Idea Of “Every Penny Counts”:
Every penny saved adds up to a big amount.
Example:
$100 saved each month can become $1,200 at the end of the year.
On the other hand, if you waste your Money and do not put effort into Saving, 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 don’t 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? Isn’t 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 challenging life parts.
13. Expenses Are Higher Than Income:
If your expenses exceed your income, it is pretty evident why you are not making enough Money!
Cut back on your expenses and improve your financial situation.
OR,
Keep a side hustle and earn a passive income to inflate your Savings Account!
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Promtfinance.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
Contact Daniel: daniel@promtfinance.com