One of the most searched questions of young adults nowadays is “why can’t I save any money?” We’ve all been there. Admit it, there was at least once in your life that you’ve asked this question to yourself. Or maybe you’re even still looking for answers. Why is it that after following all those tips from books and blogs posted online, you still can’t save anything?
The answer is simple. To be able to solve something, you must first define the problem. How can you change anything if you don’t know what needs to be changed? Find out why you are stuck.
Good news is, I have listed a few possible causes that answers why you can’t save any money. If you find something that you might be doing, try to change it and actually start saving!
You don’t make enough money
This is a little straightforward but let’s face it. However tight your budget is, if you’re only earning enough for your monthly expenses, there won’t be anything left to save. Even if you drastically slash your expenses and live as frugal as you can, you can’t change the fact that you don’t earn enough money. It’s frustrating, but there is a way to blow that frustration away.
Look for side jobs. This would mean working more hours so you need to be ready for that. However, there are jobs available that does not require much effort and does not take much of your time. You can even do these jobs at home! Try looking at freelancing sites. I will not mention any of the sites here but remember, google is your friend!
You have bad spending habits
Bad money habits ruin your budget big time. A lot of factors trigger us to buy things we don’t really need but there is no excuse. Spending money on useless stuff won’t take you anywhere.
I was once a big spender, I shopped a lot to the point that my friends almost signed me up to a shopaholic support group. I was not a shopping addict, but I almost went there.
Realizing my current situation, I gave up my credit cards and let my friends handle them for me. I did a no spend month and to be honest, it felt good. ( You can learn more about the no spend month challenge here.) I liked the change. So if you really want to save, slowly eliminate your bad habits now!
You can’t completely differentiate your needs and wants
Every money saving tip out there is always telling us to only buy or at least prioritize our needs over our wants. You must think that you are already doing this, but what if you can’t really differentiate the two?
Food is a need, but eating out when you have food at home is not. Clothing is a need, but buying ten clothes at a time when your closet barely has enough space for new items is not. See the difference? A need is something that you can’t live without or something that will benefit you a lot in the long run. On the other hand, your wants bring temporary happiness that usually does not last a month. Weigh your options wisely.
You don’t have a goal
It is important to know why you want to save, what you are saving for, or what you want to accomplish. Before starting your savings, ask yourself a few questions that will help you establish your goal.