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 w...
Consumerism is, according to Google dictionary, a society's preoccupation with the acquisition of consumer goods in ever increasing amounts.
Meaning continuously buying stuff for the sake of buying even if it leads to debt.
Excessive consumerism is when your earnings come in one hand and go out the other.
When you are earning good income but still living paycheck to paycheck without any savings.
The Symptoms/signs of excessive consumerism
1. Buying more than you planned
Constantly buying more than what you planned to is a sign that you
2. You run out of storage
Buying more than you need will definitely lead to low storage capacity. You will find yourself not having enoght space to house all your items.
3. You buy things on credit
Debt is not bad. You can actually use debt to acquire wealth. It is over utilisation of debt with little to no repayments that's an issue.
Over utilising debt will keep you in debt and never afford you an opportunity to be debt-free and achieve financial freedom.
5. You can't stick to a budget
Budgeting allows you to allocate your funds efficiently. It maximize the use of your income. Not being able to stick to a budget and constantly overspending is a sign of a bigger issue. It is self sabotage.
6. You regret your purchases
Do you find yourself regretting your purchases? Buying stuff and instantaneously wishing you didn't? This is an indication of compulsive buying.
It shows that you are buying stuff you don't really need. And are not making calculated financial decisions.
7. You buy things you already have
Ever bought something then later remembered that you already own the same or similar item? Or found clothes at the back of your closet with tags on that you don't even remember you had them?
This is an indication that you buy stuff without thinking them through or don't need.
8. Fear of missing out
If you find yourself fearing to miss out and trying to keep up with the Jones. Buying stuff you do not afford because it is the latest trend. Or investing in schemes you do not understand because so and so did too. Then excessive consumerism might be an issue.
A Helpful guide to overcome consumerism
1. Adjust your mindset
Before you even attempt to overcome consumerism, you have to believe it is possible. Consumerism is a state of mind, you need to be ready to overcome it. You can draw motivation from people who have adopted a minimalistic lifestyle. These are people who cut the rope of consumerism and buy only what they need.
2. Consider the full cost of your purchase
Think through your purchases. How does this purchase affect your overall personal finance health? Does it dig a deeper hole into debt? How will it change your day to day life? What about your future?
Spending money is never just about spending money. It will definitely affect your financial health, your mental health, and your lifestyle and family.
3. Start a gratitude journal
Sometimes we overspend because we want to fill a void inside. Or just trying feel productive.
A gratitude journal allows you to process your emotions and appreciate what you already have. It will also bring to light all the wealth you already possess.
4. Turn off your T.V
And get off social media.
Do you remember those Verimark advertisements that had you wanting to but a vacuum cleaner as a kid?
Even though you didn't clean your home and had zero interest in cleaning. Those are an excellent example of well scripted ads. And there are many like that on your T.V screen and social media.
Advertisers use this forms of media to convince people to get things on impulse. As a kid you could not afford those things but now you can and will likely believe you are making a great purchase even though you never thought of buying those things until you saw the ad.
5. Remind yourself why you started
You have your reasons to overcome consumerism. And it will do you good to always remember them.
Overconsumption is a habit and like most habits, you will not be able to overcome it overnight. It will take time and consistency.
Some days will be harder than others. On such days, you need to remember your reasons. You need to stay motivated and remind yourself of the progress you have made.
Read more: About mindful spending
6. Repair and reuse
Getting your money's worth out of products is the best use of it.Instead of buying new stuff when the old ones do not function well, consider repairing them.
You can also find another use for items other than their intended use. For example, reusing peanut butter jar to store snacks and so on.
7. Refrain from shopping as a hobby
Spending more for sake of spending is not a hobby. It should not count as one of the fun things you like to do.
It solely a gateway to misuse of resources and later debt. You must avoid shopping out of boredom.
Excessive consumerism snick upon you. It starts with a few shopping trips a month to shopping every week. And then any other day. Impulsively.
You must find cheap(or free) entertainment outlets and explore your interests without spending money.
8. Borrow or rent instead of purchasing
There are things that we need to use but only a few times or once. It is more economical to rent or borrow such items instead of purchasing them. Renting can curb overconsumption and break habits of consumerism.
9. Sleep on it
Swiping your card away or checking out that online cart is exhilarating, for a while. Then you are left with no money and things you didn't really need. Buying things on impulse is so easy when you have access to the internet and targeted ads that are designed to make you feel like you need staff that you don't.
To avoid impulse spending use the sleep on it method. If you believe you really need something that you had not initially planned on getting, give yourself at least twenty four hours to ponder. Chances are you will be over it before the end of the night. And if you still want it, you should consider setting up a sinking fund. You can also use sinking funds for larger purchases.
How to use sinking fund (A guide for beginners)
What is a sinking fund?
A sinking fund is a strategic plan to save money by putting aside little money each month to achieve a certain goal. You can use your
How to create a sinking fund?
Decide what you're saving up for
A sinking fund is created with a purpppose in mind. You need to decide what you're saving up for. It can be anything. Any large purchases you intend to do in a foreseeable future qualifies for a sinking fund.
Decide where you're going to keep your money
Choosing where you will keep your money is important. You have to choose the right bank with little to no charges. If you can earn a bit of interest, even better.
Decide how much you need to save
You need a solid goal to work towards. After you have decided on what you are saving for, you need to know the estimated amount you need to save to achieve that goal.
You must know how you need to save on monthly basis to achieve that financial goal within a specified period. For instance, if you want to save R10000 in five months for a new laptop. You will divide R10000 by five months. That means you will have to save R2000 per month to achieve that goal.
Set up your sinking fund in the budget
There's no achieving financial freedom without a budget. Anything that involves your money should be budgeted for.
Allocating funds for a sinking fund in your budget will help you manage it better and see the progress you are making.
Wondering what you can use a sinking fund for? Here is a list of few sinking fund ideas
Sinking fund ideas
House Deposit
Wedding
Holiday
New phone or Laptop
Insurance
Birthday gifts
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