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
Taking care of your finances can be overwhelming and strenuous. In this blog, we break down a few basics on how you can kick-start your healthy finance journey.
Tracking your spending
Keeping track of how you utilize your resources(aka money) will offer insights into some habits you might not even be aware of. You are probably aware of the major spending such as a mortgage, car insurance and so forth but it is the smaller changes here and there that are most impactful.
As they say 'numbers don't lie
Lifestyle inflation
A few years ago, while watching "house hunters international" I learnt of the term "downsize to upgrade'. What these house hunters would do was to move to smaller homes and live way below their means in order to buy their dream homes.
It was such an unfamiliar phenomenon for me as I was taught, through culture, that as you make more money your lifestyle should reflect it. Got a promotion? Get a fancier car. Have a side hustle with substantial income? Move to a bigger apartment.
The culture of constantly spending and never really saving. I realize you might also have that mindset. If you do, I am here to let you that it is your downfall.
Unless you are living under uncomfortable conditions, you don't need to constantly upgrade your lifestyle. More disposable income shouldn't mean a lifestyle upgrade, rather grow your savings and pay off your debts.
Self-growth
It is universal knowledge that most(if not all) school systems do not equip learners with the necessary knowledge and skills to take care of their finances. When it comes to personal finance, you are solely responsible for your growth. You need to go out of your way to learn about emergency funds, retirement funds, and savings plans.
Your personal finance growth is dependent on your willingness to learn and empower yourself. Unfortunately, we can not just wing it when money is involved. After all, we are all one bad decision away from brokeness.
You can follow blogs similar to this one (please do follow us for more content on personal finance if you don't already), read personal finance books, and follow personal finance content creators. The good news is being money-wise is a skill that can be learned.
Impulse buying
Instant gratification is the enemy of progress where money is concerned. Unplanned expenses lead to unplanned debt. You have to think twice before buying anything. Assess how much you need it before you commit to buying it. Sleep on it.
You should ask yourself, 'do I really need this? If so, why?'. This will ensure that you only buy what you really need and avoid unnecessary expenses.