Although, Saving Money is immensely important and a key area of personal financial management, but it has been seen that many people do not understand this fact and fail to save money.
They simply neglect saving money which is the basic criteria of making wealth and living a happy and prosperous life.
Failing to save money should be looked upon as a problem then only we can move forward and find adequate solutions to address this vital problem. It is just not enough to say, “Oh! I am not able to save money” and continue to follow the same approach of not saving money.
On the contrary, it is crucial to know, Why People Fail to Save Money? So that, you do not make the same mistakes and end up not saving money.
If you are too suffering from the same problem of not saving money, then this post is absolutely indispensable for you as you can come to know the root causes of why people are not able to save money. Once you know the reasons for not saving money, you can then amend your ways and start on the journey of saving money.
Remember it is never too late to start a fruitful and rewarding journey and the same is also true with regard to saving money. So you should get rid of the problem of not saving money by beginning a new journey to a prosperous and happy living by saving money.
Below, we illustrate the points of Why People Fail to Save Money?
Once you know the reasons then you can easily revert to the opposite and follow the path of saving money.
1. Simply forget to Save Money
Most of the people who fail to save money come up with this lame excuse that they simply forget to save money. Actually saving money is not a natural phenomenon. You have to make efforts in one way or the other in order to save money. For this, you have to be clear in your mind that saving money is important for you and that you have to save money at any cost. Then only money saving can begin for you.
2. No specific purpose for saving
An important reason why people fail to save money is that they lack a specific purpose of saving money. As a matter of fact, a specific purpose for saving money is very important. It acts as a motivation and propels a person to continue saving money until that specific goal is achieved. Preferably you can begin to save money by attaining short term goals such as buying a digital gadget, or might well go for saving money for a vacation with your family.
3. No target amount
In the absence of a target amount, a person drops the whole idea of saving money. So with no target amount, a person is not at all motivated to save money. In addition of knowing the exact purpose of saving money, you also got to figure out the amount of money that you wish to save. No target amount means that you eventually fail to save money.
4. No Budgeting
Budgeting is an essential element that helps in saving money. With Budgeting, you can come to know what your total earnings are and how and where you are spending your money. In this way, you can control your overall expenditure and thus can save money. However, with no Budgeting in the place you simply go on spending money without caring to save money.
5. Over Spending
Over Spending is another factor due to which people fail to save money. Usually people over spend on Fun Money thereby reducing their scope of saving money. Over Spending happens spontaneously and has to be controlled deliberately. If you do not control your over spending habit, chances are almost negligible that you would be able to save money.
6. Not Enough Money
People often complain that they are not having enough money, and that’s why they fail to save money. However, this is just a lame excuse. With proper budgeting, and following a disciplined lifestyle, you can still end up saving money. Although it may happen that the saved amounts is very small, but remember that small drops do make an ocean.
7. Burden of Debt
Debt is another reason why people invariably fail to save money. Debt consumes a large portion of your earnings, which goes towards the repayment of the debt. At the end of the month, you are left with little or no money which makes saving money nearly impossible. So you should be having that much debt which still leaves room for you to save money.
8. Increase in Household Expenses
Prices of basic commodities, utilities and other household expenses are rising sharply. If there is not a marked or a substantial increase in your earnings, chances are high that you would fail to save money. However, if you still want to save money then the other obvious option is to reduce your consumption levels and go for buying cheaper goods.
9. No, Retirement Plans
Retirement Plans offer an easy way to save money and especially the employer sponsored retirement plans. If one does not participate in such retirement plans, he or she is missing out a great opportunity for saving money. No, Retirement Plans means little or no savings at all.
10. Excessive Use of Plastic Money
Excessive dependence or excessive use of Plastic Money such as credit cards hampers your goal of saving money. Lot of your money goes in paying their bills. Though Plastic Money gives you certain benefits, but their excessive use should be preferably avoided if you really want to save money for future use.
11. Not Paying the Bills Timely
When people fail to pay their bills in time, they end up paying extra amount in the form of charges and fines. This can amount to a good sum of money which otherwise you would have saved. So, not paying the bills timely hampers your goal of saving money.
Thus, you see that there are many reasons, Why People Fail to Save Money?
However, with a little bit of focus and efforts, you can easily overcome these challenges coming in your way of saving money. If you realise and agree with a very basic fact that saving money is important for a wealthy, prosperous and happy living; everything else would fall in its place. You will eventually begin to save. Moreover, saving money would become a habit for you and instead of failing to save money; you will actually be successful in saving money.