Saving money can be very easy, but this isn’t the case for everybody. There are plenty of individuals and families out there that try to save, but can’t. They’ve all read money-saving advice and tried to follow the tips, but nothing seems to work.
Relating to this I’ve decided to try and help you figure out why you can’t seem to save money, no matter how hard you try. The list of reasons might shock you, but they’re all things I find hold people back when it comes to saving as much as possible. Give it a read, and take onboard any tips provided to help you get out of your tricky situation.
Your House Costs Too Much
This reason has dual meanings in that you could’ve paid too much for a house, or you may be paying too much rent to live in one. Either way, your house is costing a lot of money, and it’s difficult for you to save any.
Allow me to elaborate a little bit, so this makes more sense to you. Let’s say you buy a house, but it’s very expensive. More often than not, you’ll have to take out a mortgage. As a result, you’re making huge mortgage repayments all the time. This provides you with an essential expense you can’t avoid. Every month you have to delegate some of your cash towards the mortgage repayment. This leaves you with less money to play with, not forgetting you also have other things to pay for, and your savings quickly evaporate. The same goes for rent too, every month you might be forced to pay lots of money, limiting your ability to save.
Why is this the case and how can you solve the problem? Generally, people that live in expensive real estate markets have this problem. If you live somewhere and the house/rent prices are high, you have no choice but to pay extortionate amounts for a home. Even if you downsize you still might be paying too much for you to handle.
Possibly the only way to solve this is to move elsewhere. Forget about your life here and move abroad to a different country where the houses are way more affordable, and people are given a fair shot. Places like Singapore have things in place like the HDB resale to give residents more opportunities to buy affordable housing. Then, you have countries like Spain where the cost of living is exceptionally low, meaning rent prices are some of the cheapest in Europe. If you open up your mind to the rest of the world, you will find so many countries and cities with affordable housing and great job opportunities. Perhaps a move can help you save money in the long-run, ready to return back home in your later years.
You’re Not Earning Enough
It’s incredibly hard to save money when you don’t have a lot of money coming into your account. The sad reality is that people who don’t earn enough money are those that need to save more than anyone else. But, doing so is very difficult as you’re often left with no opportunities to save money.
If you’re on minimum wage or a low salary, you have less money to spend. This may seem like a good thing, as it stops you from recklessly spending your cash. However, think about all the essential things you have to pay for; taxes, bills, food, etc. With not a lot of money coming in, it limits how much you have left over after your essential expenses. As such, there’s less to save, and sometimes no money to save at all.
It’s a very tough situation to find yourself in, and there’s only one way you can solve it. If you’re already applying money-saving techniques and trying to reduce your expenditure, but it’s not working, then you need to increase your income. How can you do this? You could try and get another part-time job, or you could do things in your spare time to earn money on the side. Little things like babysitting, dog walking, or even freelancing, can help you gain a little extra income. The more you earn, the greater chances you have of being able to save money.
You’re Wasting Your Change
This is arguably one of the most important reasons on this list, despite the fact it doesn’t look as significant as the previous two. In the grand scheme of things, how will a little bit of change affect your capacity to save?
The answer is, it will affect it a lot. A little bit of change here and there seems like a tiny amount, but you’ll be amazed at what it all adds up to. Even the pennies and insignificant coins will contribute to your savings. Let’s look at the first two points to illustrate what I mean. If you have an expensive house and don’t earn much money, then you find it almost impossible to open a savings account and regularly make deposits. However, I bet you still have change left over from some transactions when you use cash. Everyone does, it’s very rare that we always pay in exact change. What do you do with this change? Do you let it linger around your house collecting dust? Do you want to get rid of it so buy little things you don’t need? Both of these things lead to wasting money that can help you out.
You see, what you should do is collect up any spare change you have. Have a little spare change jar or pot, and keep filling it up. To make things even easier, you could buy a change counting machine where you put all your change in, and it counts up how much you’ve got and organizes the coins into the right piles. This will come in handy for the second step; cashing in your change. Once your jar is filled up, you should organize it and take it to the bank so you can cash it in and deposit the change into your account.
As a result, you’ve now got some extra money that can be put away into a savings account. All of this comes from the loose change you accumulate over time. Throughout a year you could save a fair amount of money. But, even if it’s a small amount, every little helps when you’re struggling to save.
You Have A Family
Saving money is much easier to do when you’re on your own or living with a partner. But, when kids get introduced, it makes the whole concept ten times harder.
Children, and a family bring in lots of additional expenses to your life. Instead of looking after and paying for one person, you now pay for two or three children too. Then, you have the issue of pregnancy to deal with too. It puts you out of work and can mean you only have one source of income for a good few months to a year.
Is the solution to not have kids and start a family? No, of course not! It’s more along the lines of wait until you’re financially ready. If you’re struggling to save as it is, then it’s not a good idea to bring children into your life too. Sort out your financial issues, learn to save effectively, then bring them in.
In conclusion, if you’ve been trying to save but just can’t quite hack it, then it’s most likely down to one of these four reasons. If you’re really unlucky, then all four of them could be affecting you at the same time!