Are you having trouble saving money?
If you answered yes, then don’t you worry because you’re not the only person having a hard time saving his or her money. It’s pretty normal actually, not everyone of us knows how to save money early in his or her life, nor do everyone of us have enough money to sustain his or her daily needs.
Now, the first thing that you should do is find out why you are having trouble saving money, and then decide how would you want to fix it. Here are some reason why you might be having trouble saving money and how you can solve your problem/s.
Reasons Why You’re Having Trouble Saving Money
You don’t have goals
Goals are very important for you to save money.
Why is that?
It’s because your goals are the ones that will guide you to where you want to be, and without them you’ll be going nowhere.
Do you know that most people that are having trouble saving money don’t have goals?
They might be doing their best to save their money, but without having a goal in mind, they will always feel lost.
If you’re having a hard time choosing what you want to achieve, then here are some saving goals that you could try to accomplish.
- Save 20% of your monthly income for the rest of the year
- Save money for a car or a house
- Start saving for (insert your child’s name here) education
I’m sure you’ll be able to think of other goals that you want achieve soon. What matter is you have at least one that would tell you where to go, and you know where to focus your attention.
Solution: Get yourself together, identify your goals, and strive to achieve them
You’re not following a budget plan
If you’re new at this budgeting stuff, let me tell you first what your budget should consists of. The budget that you need should have the following:
- Fixed expenses like rent and mortgage
- Variable expenses like groceries, credit cards and entertainment
- Periodic expenses like car maintenance and home repairs
- Your overall monthly income
Making a budget plan can be quite easy (for some), the hard part is following it. If you’re having a hard time following your budget, then you may want to practice doing these things:
- Only bring the amount of money you really need
- Always pay with cash
- Freeze your credit card, literally
- Get rid of your credit card and get a debit card instead. Check out The Great Credit Card vs Debit Card Debate.
- Adjust your budget
- Know your limitations
- Remember your goals
Solution: Create your own budget and follow it
Need Extra Help?
John at FrugalRules.com published an article before about the 8 Best Apps For Budgeting. If you’re a techy person, then head to his site now and see those apps yourself.
You don’t know where to put your saved money
Another reason why most people are having trouble saving money is because they don’t know where to place their saved money.
So, where should you put your saved money?
I could think of two options. The first one is in a place where it is secured and would also gain very little interest as time passes by. The second option is to hand it to someone that would put your money in a market where it could increase over time, have larger interest rate than the first option, but you could lose your money if you make stupid decisions along the way.
The first option is, of course, to get yourself your own savings account, while the second option is for you to invest your saved money and let it grow over time.
Now, where would you put you saved money? Would you just let your money sit there in the bank or would you rather invest it and try to get better returns for it?
Solution: Determine what you want to do with your money, and talk to a financial advisor for further assistance
You’re not earning enough money
This one is pretty self-explanatory, right?
You are really going to have trouble saving money if you’re not earning enough.
The only solution for this one is to find a second job or other sources of income that you can come up with, or start living way below your means.
If you’re good at computers or an I.T. graduate, then becoming active in the online world could get you the payday that you need. There are a lot more opportunities now for you to earn money than ever before, so what are you waiting for?
Anything can be accomplished with hard work and a little bit of luck. (Click to Tweet this phrase)
Solution: Start working harder and search for more sources of income
Need extra help?
Michelle of SnarkFinance.com submitted a guest post to DebtRoundUp.com about “How To Find a Side Hustle?” on the last day of 2013. If you want to know the ways you can do to find the right side hustle for you, then read that article of theirs.
Have you identified the reason why you’re having trouble saving money? What are your plans to correct it?
Photo Credit: Alan Claver and David Ohmer