Let’s face the truth: all lot of people find it difficult to save for the future. They don’t make budgets, they run up credit card bills. Then they fall into debt before realizing they should have saved some of their paycheck for things like rent, their electric bill, or the Netflix subscription. This leaves them scrambling and thinking that saving money is a hard chore.
Why do people have such a hard time saving money?
Here are a few reasons why people all over the country have trouble saving money.
- “I Have Enough for That”
Ask yourself this question: when you get your Christmas bonus or tax return, what do you do? Do you put it into savings? Or do you use it for something you’ve been wanting, but never had the money for like a nice watch? In an article from Money magazine, they state that some studies have shown people experiencing “abundance shock. The article states that “If I give you an abundance shock of $10,000, you don't just spend that $10,000. You end up spending $20,000 because you're thinking, ‘I have all this extra money.’”
- Another new iPhone?
Every year, something new, better, and shinier hits the market whether it’s a new iPhone or a Surface Book. We are a culture obsessed with having the next best thing, so much so that we will wait in line for days to be the first to say “I have the new Mac Book and you don’t.” However, you have to realize that you do not need the latest phone, computer, or camera just because it has animated emojis or a cool camera.
- The Blessing and Curse of Amazon Prime
There has never been a time where shopping has been easier for a consumer with online shopping. Now you can update your wardrobe, furnish your house, and even buy your groceries with the simple click of a button. In some ways, this is a great thing. However, it’s also easier to buy 12 things that you didn’t need on Amazon because you get free shipping. Take a breath and remember, “You don’t need that cactus toothpick holder, no matter how cute it looks.”
- “Oh no, my car!”
We don’t always think that something bad is going to happen. At any time, you might have to go to the doctor for a cold or the mechanic for those squeaky brakes and you suddenly have a $500 bill sitting in your lap. Now, you have to dig into that savings account so you can drive to work. This is when you need to plan ahead for what you might need rather than what you want.
- Do You Have a Budget?
Of course, there is the biggest obstacle of all: the budget. You might have told to budget by your boss for a new project or maybe by a parent when they told you Santa wasn’t bringing as many presents that year. However, be honest with yourself. Do you have a budget in place that you stick to? A budget can help you figure out how much you can realistically set aside and how much needs to go to paying off those credit card bills instead.
Are you having trouble saving money? Check out our blog next week to learn a few easy ways you can start saving money for the future!