Everyone knows that money needs to be saved regularly. However, in practice, not everyone succeeds. What prevents you from using simple rules of accumulation and how to tidy up the budget? Let’s figure it out. Why doesn’t it work? Main reasons
Not taught to save in the family
Financial planning is one of the habits that a person copies from their parents or grandparents. If it was not customary in the family to save money, money was easily and easily borrowed (and in later times – on credit), then these habits are easily passed on to the child and into adulthood. However, parents cannot be blamed for everything. They lived in different economic realities, where wages were stable, prices were predictable, the bank and insurance company were state-owned. No matter what happened, you could always count on an advance or a mutual aid fund. Many simply did not see the need for savings. If the family did not give you an example of how to manage the budget correctly, then there is always an opportunity to learn how to manage it yourself. Websites, books and training courses on financial planning will come to your aid.
Lack of knowledge about how you can save your money
The unstable situation in the economy forces people to be careful. As a result, many of them do not even trust deposits. New tools for saving money (profitable cards, life insurance, stocks, bonds, mutual funds, etc.) are mastered with great difficulty. It seems complicated, incomprehensible and gives rise to the fear of losing savings. Not everyone knows about the benefits and tax deductions they are entitled to. This means that part of the money owed to a person by law is lost. If knowledge is lacking, it is never too late to start getting it. Follow the emergence of new banking products, explore investment opportunities, learn about deposit protection and insurance guarantees – and save money where it is safe.
Lack of motivation
Many people start saving money for the sake of money. And in the end they fail, because the accumulation of pleasure in and of itself does not bring. If there is no specific goal for which you want to save, then the process of procrastination turns into an endless dreary duty. If the goal is blurry (for example, to buy a house), then it seems unattainable. And if you describe it in more detail (a brick house, an area such and such, is located in such and such an area), then each deferred amount will consciously bring it closer to this goal: to the foundation, walls, workers, materials, and in the end – to the long-awaited housewarming! Find a purpose for which you want to save. Describe it as specifically as possible. Find out how much it “costs”. And start saving money by being inspired by the possibility of achieving this goal.
Habits interfere
And this is not only about alcohol or smoking, which now takes three times more than before. Daily dinners in cafes, taxi rides, passion for sales and fashionable gadgets, and unstoppable shopping are just a few of the habits that help you lose the lion’s share of your budget. It’s hard to part with habits, but if they are too expensive, they prevent you from saving money and achieving real, big goals. Start keeping track of expenses, calculate and eliminate your “money eaters”. Some of the bad habits can be replaced with useful ones. For example, “skip the award” is easy to replace with “please yourself with something small, and postpone the rest of the award.”
Bad beliefs settled in my head
- «Were not rich – there is nothing to start»
- «You can’t earn much in an honest way»
- «Inflation will gobble up everything.»
- «Tomorrow will come – tomorrow we will think about it.»
- «Let the rich count money, we have nothing to count»
- «Mine, not mine, but the state will find a way to take it away»
These and many other thoughts call to give up and live for today. They convince that a person is poor, and that money is only the lot of thieves and businessmen. And it is these thoughts that ultimately interfere with saving and planning large purchases. If you find such beliefs in yourself, hurry to part with them as soon as possible. Read biographies of businessmen, listen to motivational speakers, master psychological practices of getting rid of these thoughts-viruses. And start procrastinating.
Too lazy to save
Often this reason hides a banal unwillingness to understand the issues of savings. It seems complicated, imprisoning, unfashionable. Laziness is joined by disorganization, emotionality and frequent breakdowns, when the deferred is spent in an instant on momentary weakness. Find your personal motivation to save money. This can be more than just a major purchase or a long-term goal (like a retirement). Perhaps you will be inspired by the desire to teach your child the correct management of money, to set an example, to achieve something by your own efforts.
Low income
This point is not in vain at the end. There are several times fewer people who have really low incomes than those who justify the lack of savings by this. Therefore, it is so important to first balance income / expenses, motivate yourself with an inspiring goal and cut off harmful thoughts and habits. And only then diagnose your budget. If you are sorely lacking money even with the right approach to spending, urgently look for ways to increase income. A new job, a part-time job, a retraining – all this will bring more money into your budget, which means that there will be an opportunity to save.
Remember: you can save money with almost any amount. It is important to do this regularly and become a habit. And then everything will work out! Start procrastinating now. Take the first step towards financial freedom, confidence in the future, and the fulfillment of your desires!
