4 Reasons Why Savings Are Difficult and the Solution
Why is it so difficult to save money? Why am I unable to commit to it? In fact, if you look around, you'll notice that it's very easy for other people to save.
So, what are the causes of saving difficulties, and what are the solutions?
1. Too focused on the present rather than the future
Some people find it difficult to save because their priorities are oriented toward the present rather than the future. When you save money in savings, the results are not felt or seen. It's different if you use money to buy something, such as new shoes or bags. You can immediately see its form and reap its benefits. Even though there is no form, having money in savings provides many advantages. You become free of financial anxiety and stress. If you have an emergency fund, you will be able to deal with an emergency calmly.
The solution is to begin budgeting for all needs, including savings. Make sure you have money set aside for savings every payday. If you're not used to it, start slowly at first. The amount of money set aside for savings can be increased over time.
2. No financial goals
Every action you take must have a specific goal in mind. If not, we lose enthusiasm or commitment to the task at hand. What brought you to the airport? Because it will take a plane or pick up visiting friends. Saving is the same way. Although saving provides benefits such as peace of mind and the benefits mentioned above, having a goal helps to focus saving.
The solution is to first determine your financial goals in order to be enthusiastic about saving. Everyone has dreams, and these dreams do not have to be the same as those of others. What is your long-term and short-term goal? Make a list.
3. Even if your salary increases, don't boost your spending standards
The greater your income, the greater your expenses. So, for example, you get a raise. This is a good thing. However, as wages rise, so do expenses. Because salary increases increase purchasing power. You will have more money to spend on whatever you want. In fact, the salary increase should have no effect on the expenses that have been accruing thus far. The difference between the new and old salaries can be saved. The solution: in addition to maintaining budgeting discipline by allocating funds for various expenses, you can add financial goals you want to achieve or put money into an existing savings account.
4. External factor
There are numerous external factors that make saving difficult. When you see a popular trend, you don't want to FOMO and end up following it. It cost money to do it. You can't stand it when you see so many discounts in online and offline stores, and you don't want to miss out because when else? As a result, all discounted items are purchased, even if the item is not actually required.
Many other external factors, such as the desire to impress or impress others and peer pressure, contribute to the difficulty of saving. The solution: Even if you are having difficulty saving because of external factors, the solution is within yourself. You are the one who decides what is important in life. Is it better to save for present and future security or to spend money on temporary pleasures?
Finally, saving is not difficult. It is critical to understand why you are having difficulty saving. From there, you can implement the best solution for you.
Source: jago.com