Are you always broke? Do you always ask yourself, why can’t I save money? And, how can I save more? The hard truth is that you may be struggling to save money because your heart isn’t really in it. You’re also likely to be making a whole lot of mistakes that many people make every month.
Whether your hard-earned money is already spent before you’ve had a chance to check your balance, you’re living outside of your means, or you’re swimming against a tide of unshakeable debt, if you’re always broke then it can feel as though you’re not getting anywhere in life.
By taking responsibility for your finances and recognising where you’re going wrong can dramatically change your financial habits for the better. So, with this in mind, I’ve gathered 5 reasons why you can’t save money.
You don’t know anything about money
Do you know what interest rates are? What about a personal pension? Click here to find out more about a pension transfer. If you don’t know much about money – and don’t worry you’re not alone – then how can you be expected to make informed choices and good financial decisions? The best thing to do is to research the terms you find yourself faced with on a regular basis. If something in particular leaves you feeling confused, do some research, read books or consult articles that will give you the knowledge you need and give you more financial confidence.
You’re not working to a budget
A simple mistake that is thankfully, easily rectified. When you choose to live without sticking to a budget then you’ll have no idea where your money is going and how much you need to spend on what. It’s when bad choices happen, and if a financial emergency arises then you could be in big trouble. From your food bill to your utilities, direct debits to car expenses, when you work out your incomings and outgoings, it’s much easier to save something for a rainy day.
You don’t have a goal
When you have a saving goal in mind, you’re more likely to stick to your saving plans. Whether it’s a house, a holiday, your retirement or a new car, putting a savings goal in place will help you stay on track and actively save daily.
You don’t have an emergency fund
Having an emergency fund in place means that if your car suddenly breaks down or you have another emergency repair to pay out for, then you won’t have to use your monthly wage to cover the sudden expense. When you’re not prepared for a fiscal emergency you could easily cripple your finances and quickly fall into debt. This leaves you in an even worse position than before. Make sure that you’re putting a little money away each month for an emergency fund.
You make excuses
I’m not good with money. I don’t earn enough to save. All of these excuses are common, but they’re just not credible. Saving money and being proactive with your finances requires forward-thinking and planning, once you remove these mental blocks you’ll find it much easier to save!