Have you ever wondered why saving sometimes feels impossible?
No matter how hard you try, you earn money, you pay bills, you buy what you need and you still somehow are saving close to nothing every month.
The truth is saving is not always about how much you earn. Sometimes its about, mindset, spending choices and the way you manage your money.
Here are 10 common reasons why saving money can be so difficult, and what you can do about them.
You Don’t Have a Clear Goal for Saving
To save money these days, you need to know what you would like to save for. If you don’t have a clear goal, saving will be nearly impossible. By setting a goal to save for, you set a clear amount that you are going to be saving.
For example you want to put down a deposit on a new car, and the deposit you would like to save is £1000. Your time frame is 6 months, and this is your goal: save £1000 for 6 months for your car.
Saving £1000 for a new car sounds far more promising than just saving for a deposit for a new car.
You Spend First and Save What Is Left
Have you ever heard of the fraise, “Pay yourself first?”
This is one very important rule that a lot of us are not following.
As soon as you get paid, put the amount aside in your savings account.
This is how you pay yourself first. Work with a strict budget and know how much money is left to spend. Let me tell you: you have no other option but to stay within that amount.
Your Monthly Expenses Are Too High
Have you ever been in a situation where you will buy something that’s far too expensive for your budget.
When I was in college, one of my colleagues said to me, “I want to buy a pair of jeans for £600.”
Now I know that girl very well, and I know she cannot maintain that standard, so I said to her, “Is this your usual spending on clothes? Is this how much you usually spend, and are you able to afford to buy more clothes at that price, rather than just these particular jeans?”
Of course, the answer was no.
She straight away knew what I meant, and if you cannot afford high monthly spending on fancy clothes, holidays and restaurants, just don’t do it. Keep a standard that you can afford and live your happy life within your means.
Small Purchases Add Up
Have you ever added up what your daily coffee is really costing you?
Just £4 a day works out to around £20 a week, or roughly £80 a month — that’s £960 a year.
And then there are subscriptions. If you’re paying for services like Netflix and Disney+, your subscriptions could easily add up to around £200 a year.
That’s potentially over £1,000 a year on coffee and entertainment alone.
What about your small weekly trips to the shop for milk and eggs, where you come out of the shop with a £30 bill?
All of these add up, and your best way to avoid them is to get organised: write a shopping list and a menu for the week. Shopping once a week will reduce your daily trips to the shop and reduce impulsive small buys.
Instead of spending £4 a day for coffee, buy reusable or takeaway cup and make your own coffee at home. You could save nearly £1,000 just from that.
Then take a look at your subscriptions and any other services that you are paying for. Do you really use them? See if you can cancel some and save the money instead.
You Are Trying to Save Too Much Too Quickly
Being able to save is a habit, not a race.
Don’t put yourself under too much pressure. Give yourself time and make sure you are comfortable with what you are saving.
Learn to save a small amount, even £5 or £10 per week will be a great beginning.
Gradually increase the amount each week until you reach a comfortable amount. Time will show you what the best amount is for your to save. The goal is not to save overnight; the goal is to feel comfortable and happy about the amount you are saving.
Remember, you don’t need to stop enjoying life- be smart, save small amounts and be consistent.
You Don’t Have a Budget
It is not easy to save, if you don’t know where your money is going. If you are trying chaotically to save money when you can and as mush as you can, this is not going to work.
One of the best ways to save, is to create a budget and stick to it.
Start by writing down all your monthly expenses; rent, fuel, gas and electric, subscriptions and anything else you are paying for monthly.
Work out how much you spend on food, then work out how much you can save. For example, if you calculate that you can set aside £50 this month, do it and forget about it.
Saving Isn’t Yet a Habit
For you to be able to save money consistently, saving must become a habit.
If saving is not a part of your routine yet, it is easy to spend the money and not save it.
Start small and make it a habit, even if it’s £5 or £10 a week, that’s still progress.
The more you do it, the more naturally it will become. Sooner rather than later, you will be saving bigger amounts.
You Don’t See Yourself As a Saver
One of the biggest challenges we face as human beings is our mindset.
Not everyone realises just how powerful their thoughts and beliefs can be.
If you constantly neglect yourself, think badly about yourself and believe you are not good enough, you can start living accordint to those beliefs.
Change the way you see yourself, and you can begin to change the way you approach your life.
Take chances, believe you deserve better and be kind to yourself.
You Are Tempted by Impulsive Spending
Sometimes saving is not possible because you don’t earn enough.
Sometimes saving is not possible because you are spending too much.
You see something you like, you buy it!
You’ve had a stressful day, so you treat yourself!
You don’t want to cook dinner, you buy a takeaway!
You see a sale, and you are quickly tempted to go shopping!
And this is how the end of the month comes and you have saved nothing.
Just like saving, impulsive buying can become a habit. The need to go and buy something can become a bad habit.
Learning to pause before you spend, learning to wait and actually think about whether you need the item, this is the control you need to develop.
Before you proceed to buy something, ask yourself these three questions:
Do I really need this?
Will I still want it tomorrow?
Can I afford it?
Train your mind to wait, and think carefully before you make the decision.
That little pause can make the difference.
Unexpected Expenses Keep Appearing
Oh well, this is a problem that we all have faced at some point in our lives.
Not everything always goes according to plan. Your car might need a repair, the boiler might break down and the kids might need new shoes this month.
These expenses can make saving feel impossible, especially when unexpected expenses happen in a few consecutive months.
This is why setting up an emergency fund is very important.
Start small and keep putting money into it whenever you can.
When life throws something unexpected at you, you can take money from there, instead of relying on credit cards or using your savings.
Final Thoughts
Remember, saving money is a habit, not something you only do when you have money left over. Set yourself a clear and realistic goal and put your mind to it.
Pay yourself first, and work with what is left. Make sure your lifestyle is affordable, and remember that small purchases add up.
Start small and be consistent. Trying to save large amounts in short time, will not work.
Unexpected expenses will happen. Stay positive and build yourself an emergency fund so you don’t have to go into debt.
Believe in yourself and enjoy your progress.