Anyway, as a personal finance blogger, I hear a lot about everyone else's money stories.
For the most part, I hear a lot of excuses for why people can't do things. I'm not saying that there aren't real excuses out there, but for the most part there are several ways for you to make active changes in your life that will help you reach your goals.
Some of the excuses I hear include:
- I don't have money to travel.
- I don't have money to pursue my passion.
- I don't have money to go back to school.
- I don't have money to start a family.
The thing in common here?
Why do people let money stop them from enjoying life?
There are so many things that you can do to reach your money goals.
I understand that some things in life cost money, but I believe that saving money can help most people reach their realistic dreams. Of course, if you make $30,000 a year then going on a $30,000 one week vacation is most likely not possible. The key is to be realistic with your goals and find a path to reach them!
Side note: Also, I do understand that I make a decent living. Last time I created an article about budgeting, someone actually told me that what I have to say doesn't matter because anyone can live off of the amount that I make. Well, let me tell you – all sorts of people have money problems, not just those who make lower salaries. Also, I know families who earn $30,000 a year and couldn't be happier. I know others who make $100,000 a year and feel like they can never get ahead. When I first moved out on my own I was barely making minimum wage but I was still able to survive. No, I wasn't the best person ever with my finances, but I made what I had work for me.
Here are 6 reasons for why you are horrible at saving money:
1. You don't have a budget.
If you don't have a budget or if your budget is not a good one, then this can be a big reason for why you suck at saving money.
A good and realistic budget can help a person and/or a family manage their money better. Yes, a simple piece of paper where you jot down your budget can actually do this.
A budget can help you realize where you might be going wrong with your finances and how to fix a financial issue that you may be having.
Many people are afraid to create a budget because it means that they will have to actually face their spending. If this is why you don't have a budget, then please just face your fears and start creating one today.
2. You think you deserve everything.
I won't lie – I'm guilty of this one. Whenever I would have a bad day at work (at my old day job), I would “reward” myself with something like going out to a restaurant or buying myself something because I would use the excuse of “I deserve it.”
However, I eventually realized that this is a horrible habit to be stuck in. I shouldn't have to reward myself with material things in order to be happy with my life.
Just because you think you deserve something because you've had a hard day or because your friend has it, you really need to sit down and think about whether or not you should actually spend that money.
You probably don't even want that item, and you might even regret it the very next day!
3. You confuse “wants” with “needs.”
Another area that applies to people is when a person thinks that things past basic life necessities are all “needs” as well.
Please remember that the only things that are actually needed in your life include a place to live, a certain amount of clothing (no, a $1,000 dress is not a need!), and food and water.
Some think cell phones, massive homes, gym memberships, pets (I love my pets, but pets are expensive and if you can't afford things in life then you need to think hard before you sign up for a pet) going to restaurants, and so on are all a need, but they really are not. If you cannot afford things then you need to start cutting items out of your budget and your life.
Erin has the perfect article for this It’s My Money, I’ll Eat Out If I Want To. Here's a little snippet:
“Let’s start with furniture. Guess what? You don’t actually need almost all of it. Therefore, it is nonessential. A mattress on a floor is enough to live… I don’t own a couch, a chair, a real desk (I use a refrigerator…), a table, or a dresser. Yet somehow I am magically surviving without them.”
4. You think you will have time to save later.
So many people think that they don't have to save now because they can save when they are a little bit older. Well, what are you going to do if something happens to you or if there is an emergency?
Starting now will help you later.
5. You don't think little amounts will add up.
I once overheard someone saying that they don't save money at all because they don't think it matters. So, even if they have an extra $100 in their budget each month, they will just find a way to spend it because they don't see the point of saving $100.
Seriously, put that extra $100 in the bank and save it. After one year you will have $1,200.
$1,200 is much better than ZERO DOLLARS.
6. You don't earn enough money to live off of.
The final reason for why you might not be able to save as much as you would like is because you don't earn enough money.
No, there is not one number that fits all.
However, if you are watching TV for 40 hours a week, and you complaining about not having enough money, then I'm going to have to say that you need to at least get out there and try to find something. If you are trying, then good job! That is the first step. I understand that the economy is hard out there, but trying to find something is key.
If your expenses are higher than your income, then you are simply not making enough money.
It's as simple as that.
You either need to make more money or cut back with your expenses. You will never save money if your expenses are higher than your income.
Do you let money control your life? What are you doing to change that?
What are you currently saving for?
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