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Difficulty in saving money often arises from unexpected expenses, rising living costs, and limited income, among other reasons.
Saving money has to be one of the most difficult things to do. Everybody keeps talking about saving and why it is important to save. We don’t talk enough about how difficult it is to save.
There’s hardly enough to go round. Taking a part of it and keeping it doesn’t seem to make sense sometimes, especially when we have needs that money can meet.
More people are preaching the saving culture and it’s gradually becoming a normal part of our conversations. But it’s also not surprising to know that a lot of people do not save.
People spend money on different things for different reasons and people have formed ideologies about money resulting from their background and personal experiences.
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Saving has a lot of benefits. It is the first step in creating and managing financial success. It helps you cultivate discipline in managing your money.
Financial experts are teaching on building wealth and investment. These are no longer terms restricted to the older generation.
Young people are encouraged to save and invest. There are a number of communities and organisations teaching and training people to imbibe this culture.
With all the benefits of saving, why exactly do people find it difficult to save?
7 REASONS WHY PEOPLE FIND IT DIFFICULT TO SAVE
No financial plan
You will be willing to save if you have an idea of the broad sense of financial freedom and you have a financial plan.
This will help regulate your spending and give you the needed reason to help save your money.
People with no financial plan do not think about the future and what they can do to secure it financially.
That’s why they can do whatever they want with their money and the concept of saving sounds foreign to them because they think that there’s no need to save.
Having no financial plan definitely makes it difficult to save. What are you saving for if you don’t have a plan for it?
Lack of discipline
People just lack the discipline to follow through on their saving plans. A lot of people start saving but they end up spending the money almost immediately.
It becomes difficult to save when it cannot be consistent. Such persons just go with the motion that saving is hard and they don’t even attempt to keep trying.
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Well, it’s not a hopeless case. There are a number of financial apps online that can help you save and even invest. You should be careful though.
There are a lot of scammers out looking for gullible people. Ensure you do proper research on the apps you’re choosing before going ahead to save your money on it.
Lack of financial education
Remember that lack of financial plan can cause a barrier to saving. But you cannot plan properly and make appropriate decisions if you don’t have a good financial education.
People don’t know about money. So, they don’t know what to do with money except to spend it. Getting financial education will help solve this.
There are training sessions online. Even financial communities you can learn from. There are a lot of books on finance you can read.
Enough financial education to get you a good footing in knowing about finances is out there. You just have to look out for them and make better money decisions.
No proper saving structures
How do you intend to save properly if you don’t have structures in place to help you save? Do you have a fixed amount you should save regularly? How do you save? Where do you put the money you intend to keep?
You know it’s very unrealistic to put it under your pillow or inside a container somewhere in your room. You have unlimited access to it anytime and you can always spend it whether there’s an emergency or not.
Setting aside a particular amount to save helps you stay consistent and also helps you plan around it. You know the specific amount you’re saving and then have a concrete plan on what to do with the rest of the money. You can also use Fintech apps to automatically save and keep your money safe.
No/Low income
Saving is keeping a part of the money you have so you can have more money later in the future. But what happens when there’s no money at all, what are you expected to save?
This is a very valid reason a number of people do not save. They know the importance of saving and the benefits they can derive but there’s little or no income available to meet their needs and it becomes difficult to set aside part of the little they have.
While this is a true and important factor, we’re encouraged to save no matter how little it is. It does a lot more good than not saving at all. Also, you can have money to save when you have a source of income.
The trick is to create more streams of income so that more money can come in. That way, it would be easier to save and invest.
Debt
Money issue is a delicate issue. People who owe debt will find it difficult to save because apart from meeting their basic needs, they still have to pay up the money they owe.
It’s advisable to avoid taking loans and owing people as much as you can, especially if there’s no concrete source of income or plan to pay back.
Interest rates if not properly checked can compound and increase the debt making it difficult to pay up. A way to avoid debt is to make do with what you have.
Do not take loans to buy items you don’t need or buy depreciating assets that will lose value over time. That’s why it’s important to learn to save because it teaches you discipline.
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Extravagant spending
Would you believe that there are people who have a good source of income, money to meet their basic needs daily but they don’t save?
They would rather spend their money keeping up with the latest trends or fashion statements than save. This habit often leads to very bad financial decisions and they end up not having money.
The simple trick is this, only spend on what you need that’s important. Does this mean that you shouldn’t spend on luxury? Of course not.
But it should not be a habit especially when you don’t have the resources to fund that lifestyle. This way you can save and build a system where you wouldn’t have to worry about enough money.
CONCLUSION
The issue of difficulty in saving is a bit more rampant among those who don’t have a lot of money. That’s because it’s difficult to part away with money that’s barely enough for upkeep. But the benefits outweigh the discomfort you’ll feel at those moments. Remember, you shouldn’t just save. Learn to invest. Savings keeps your money but investment grows your money. Whether you’re looking to build a long term wealth or you are saving for a particular goal in mind, saving is important. I hope you’ll make better decisions when it comes to your money henceforth.
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