It’s nice to be able to save money every now and then, but these days, that’s easier said than done. Sadly, a lot of people live paycheck to paycheck, many times without even knowing why. Are you one of those people? Here are 5 probable reasons why you can’t save money.
One of the biggest reasons why people are living paycheck-to-paycheck despite having a sizable income is debt.
The biggest problem with this is that many people don’t usually see most debts as, well, debt. What do you consider a debt? Your mortgage and your auto loan are two obvious examples. The money you owed your friend a couple of months ago is another obvious one. You know what’s not obvious though? Your credit cards. Your new phone, or new appliances, that you’re still paying a monthly payment for. These are all debts that need to be paid off, regardless of how you see it.
Not having a budget is one of the worst financial mistakes that many young adults make. A budget helps keep you in track in terms of finances. It helps you see what you’re spending your money on and also helps you plan for all your future expenses. If you don’t have a budget, then the chances are high that you’re just going to spend all your money on things that you don’t actually need.
Imagine going to the grocery with a grocery list on hand. Doesn’t it make things so much easier? You no longer have to think about what you need to buy and you also won’t accidentally overspend since you already have everything planned. Having a budget is the same.
What are your financial goals in life? If you can answer this question then there’s really no surprise why you can’t save money. After all, if you’ve got no financial goals in life then why would you even need to save? As with most things, you’ll need a ‘why’ in order to accomplish what you want. You won’t be motivated to save if you don’t have a reason to do it.
If you really want to save money, then the first thing you should do is to set financial goals. What do you want to achieve with the money you save? Do you want to have a business someday? Do you want to have your own house or your own car all paid off? Knowing your ‘why’ helps you become more motivated to save money no matter what.
Instant gratification is a term used to describe the desire to gain something in the present in exchange for a more desirable benefit in the future. For example, let’s say that you were given $1000 and a chance to either buy a new smartphone or invest it in something that can double your money in 10 years. Those who prefer instant gratification will choose the former, even if it means losing out on big gains in the future.
If you always choose instant gratification, then you’ll never be able to save money. Of course there’s nothing wrong with living in the now but if you keep living in the present without thinking of the future then there won’t be much of a future to look forward to. Try to consciously think about the future in order to steer yourself away from instant gratification.
Discipline is the most important virtue to have if you want to be financially successful. If you want to save money, you’ll have to learn how to develop strong self-discipline. Without it, you’ll be giving in to all your whims and wants without thinking twice, which means wasting money. Discipline, as well as all the other tips listed in this article, will help you pave the way towards financial freedom.