This Is Why You Can't Save Money
If you are having trouble saving money there are a few different reasons. For many of us getting a paycheck without a plan only leads to overspending in certain areas and a never ending cycle of bills.
I remember the first time I wrote down all of my expenses, I felt empowered.
Until I realized that the way I balanced my checkbook was wrong. Let me be specific, the method I used after organizing my finances, was wrong.
It dismantled all the numbers and plans I wrote down on paper.
Yes, I had a “spend only 50 dollar" goal but it was pointless. I would still go to the store and buy $30 worth of goods while anticipating going out more. Â
There are multiple misconceptions on saving money and how you should do it, but for now I only want to point out one.
You do NOT have to start off with a huge sacrifice in order to see changes in your wallet.
Okay, swapping store bought coffee with homemade coffee can feel monumental.
But I’m referring to picking up several jobs and never sleeping in the name of money. Saving money doesn't mean you have to sacrifice your sanity. Keep reading to find out 7 reasons why your saving techniques are not working.
Why am I having trouble saving money
You aren’t ready to save
Saving doesn’t have to be rocket science but you have to be willing to give something up.Â
The freedom to buy everything you want, when you want it, is put on hold. Truthfully even those who are wealthy do not buy every single thing they want. They mindfully spend and always keep the future in mind of both themselves and their children or organization they'd like to support when they pass.
Mindful Technique
But when the little voice tempts you to dip into your piggy bank, remember that it’s temporary. The money you're stashing away will eventually be spent or invested.
The discomfort you feel and the negative thoughts swirling, can be tamed by seeing your debt go down, savings go up, and worries slowly but surely vanishing.
Looking for more info on using credit cards? Make sure you check out our guide to getting your first credit card.
Focus on the good that's happening around you.
Too much is coming out of your check
Pay yourself first- it sounds so simple. Deduct the money from your check and put your other expenses in whatever is left.Â
Automating amounts to your savings means adjusting
The only problem is that if you are living dangerously close to your means, automating your savings won’t work.
You’ll find yourself constantly borrowing from the money you have put aside because you didn’t change any of your spending habits. You have to live below your means and let go of the idea that you can keep your spending habits the same. Habit changes are necessary to save money.
You didnt plan efficientlyÂ
Did you write everything out so that it looked pretty or did you try to ensure that your saving technique could work?
No budget -Budget method
With the no budget- budget you add up your income, automate your savings, and subtract your bills.
How much money is left over is how much you would normally have to spend. When you implement a budget you are giving yourself room to automate your savings, review what bills you have and start to make adjustments, as well as invest for your future.
Naturally, we stick to our routines and maybe it's time to shake things up and find out what's going wrong with your spending.
Check out how to do the 50-30-20 budget method.
You downloaded a bunch of apps and ignored them
I have a secret, I love setting reminders and clicking snooze.
Instead of downloading budgeting apps, you can stick to old fashioned pen and paper and carry around a small notebook.Â
Alternative to apps
My solution has been to modify a template found in Google Sheets. They have an expense tracker that adds up all the values you put in. You can even type in a minus sign [-] before the number and it will subtract it for you.
When you can see the progress it’s easier to use it as motivation.
You fall into the debit/ credit card trap
Have you ever walked into a store and it said the minimum was $7 but you planned to spend less? Now you have two options:
Walk out empty handed or buy more things.Â
Odds are you’ll justify the extra purchases if you don’t have cash. Everyone’s guilty of doing it at least once. Not everyone was taught how to use credit cards and once you start to get approved it's easy to get yourself in debt.
Extreme Treating of Yourself
It’s normal to reward yourself. Even those paying off debt should be able to replace an old, raggedy pair of shoes.
The problem lies in repeatedly buying something expensive.
Alternative mindset
Splurge on body wash that makes you smell like heaven and success, but skip the online web browsing.
Catching a sale is not always saving money.
Your goals aren’t concrete
Stating that you're saving for the future works when you’re younger. The possibilities are endless. The money could go toward college, housing, a car, maybe an outrageously priced pair of Jordans. The world was yours.Â
Set better goals
When you're novice to saving you should pick a thing to save for. Think big, plan for that new apartment.Â
Think small, put money aside for your driving classes.
This will help you to combat the nagging old behaviors of spending more and saving less.
Be your own cheerleader and find a reason to want to do better with your money. Coffee and breakfast aren't the only reasons you are low on cash but if you have to start by bringing food from home to see progress, do it.
The more confident you feel in your abilities the more you will want to work toward any of your financial goals.
In Conclusion
When you have life being hurdled at you it’s easier to get wrapped up in buying happiness.
There’s control in buying what you want.Â
But once you figure out where you fell short, it'll help you to move forward. There is not one person who did all of it right on the first try. Researching was for sure a step in the right direction, be proud of yourself.
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