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11 reasons you are struggling to save money

There are many reasons  people struggle with saving money. Many factors that we are sometimes are unaware of. In this article we will discuss some of these reasons.  11 reasons you are struggling to save money 1.Cost of living It would be an injustice to talk about saving money without acknowledging the cost of living. The inflation rate keeps rising which means prices are hiking while our income remains the same.  High costs of living, such as housing, healthcare, and education, leave little room for saving after meeting essential needs. 2. You don't Budget (or stick to it) A budget is to your finances what water is to your body. You might survive a day or two without it but in a long term you will feel the effects. Without a clear budget, it's challenging to track income, expenses, and savings. Overspending becomes common, making it difficult to save 3. You live beyond your means Spending more than you earn will leave you with nothing to save.  Spending more than what you ear

5 financial mistakes to avoid in your 20s



Your 20s are full of decisions to be made. From your career choice, to whether you want to be married or not. From having kids (or not) to buying your first home. There is always a life-changing decision to be made. It can be overwhelming. 


There is a lot of pressure to get everything done while keeping up with the Joneses. This can lead to a few financial mishaps. There are, however, mistakes that you can avoid.


  1. Not being honest about your finances

No matter how much you earn, you can always spend more than that and be technically poor. If you are not honest with yourself about your financial situation, you'll definitely make mistakes that will cost you a lot later on. 


You need to know exactly how much you earn; and how and where you spend your money. That is the only way you can plan and not live above your means. 


  1. Getting into unnecessary debt

When it comes to debt there is no right way to go about it. Debt is a two-way sword. Some people leverage it to build wealth while others prefer to stay clear of debts. However, using your credit card to buy unnecessary items that you will not even use is the easiest and fastest way to poverty.


You need to be able to differentiate between good debt and bad debt. Good debt is the one that will lead to wealth growth, like taking out a loan to start your business. Bad debt is the one that takes from your pockets without any returns, like using your credit card to buy the latest Chanel bag. Choose your debt wisely. Loans and credit cards accumulate interest so be sure it is worth it. 


You also need to beware of the biggest scam out there, credit score. It is the legal way of keeping the rich richer, and the poor poorer. Your credit score increases the more you get into debt. You can leverage it if you are disciplined enough but most people can't. Especially in their 20s.


You can still get beautiful, luxurious things without debts. You can buy pre-owned cars and pre-loved furniture. Thrift as much as you can. Do not let the societal pressures get to you. Rule of thumb: if you can’t afford it, don’t buy it.


The next mistake is closely related to unnecessary debts.


  1. Lifestyle inflation

"It is not the man who has too little, but the man who craves more, that is poor." -Seneca


In the world of social media, it is easy to get carried away with new trends and buying the latest gadgets. The constant rush to the top and getting the latest in the market is a downward slope. It leads to nowhere. Lifestyle inflation is constantly trying to elevate your lifestyle through spending on materialistic items. 


The issue with this is that you will end up with nothing. It leads to overspending instead of investing. 


  1. Not planning ahead

Financial planning is one of the most important things we can do for ourselves. Planning your finances is the epitome of self-care. And like any self-care ritual, it has to be practiced consistently to be effective.

Most people regret not planning for their future when they still had time. You can believe you still have time to build your investment portfolio but the best time is always to start as early as you can. To be financially free and build wealth, you need to have a plan on how you’ll get there. 

One of the lessons that the past year has taught us is how unpredictable life can be. It is for this reason that you should always plan for the future. Build your emergency fund, savings, and investments. Never think you are too young to be investing. It is actually cheaper to invest at an early age. 

This leads to the last mistake you should avoid

  1. Not contributing to your retirement

As mentioned above, you are never too young to be investing in your future. Building your retirement fund is an essential part of financial freedom and generational wealth. 

According to a survey conducted by Money Under 30, 51.6% of the millennials are not contributing to their retirement funds. This is a very disturbing stat. More than half of the millennials are not investing in their retirement. 

The earlier you start investing, the more return on investment (ROI)  you’ll receive. Compound interest plays a huge role in that. You should also try to match your employers’ contributions and max out your yearly contributions.

In conclusion, plan your future out and do not let the societal pressures get into you. Do as much as you can for your finances while you still enjoy yourself. The aim is to be financially independent, not miserable.

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