Saving is a universal requirement to build a secure and better financial future. While saving seems easy on concept, it is actually a practice many struggle with. If you’re unable to save, there must be some reason for it.
First, you haven’t set your financial goals. Money can easily slip from your hands for the most mundane things simply because you don’t know what it is for. If you determined beforehand that you’re saving for retirement, education, vacations and other specific expenses, you can easily skip certain luxuries like expensive dinners and lattes.
Second, saving is hard because you constantly see money. You have a thick wad of cash or a wallet full of credit cards so when you’re in the store, paying even for unplanned expenses becomes easier. However, if you pre-determined an amount to save each month and automatically transfer it into your savings account before you see it, you can easily spend shopping money without guilt. Saving is already taken care of.
You might also not be saving because you want to outshine the Joneses. You always want to get the latest, shiniest and newest things that even the amount you intend to save gets to be spent. However, if you spend only on what truly matters to you regardless of what other people will say, there’s a good chance that the latest and newest items don’t really matter.
For many of us, money is a limited resource. It can run out when you spend it, but if you save money for the most important matters, you will find yourself in a better financial position. Furthermore, saving money allows you to build a financial cushion that you can tap into in case of emergency or spend without compromising the budget for other expenses.
If you’re constantly running out of money despite earning a decent income, then you might be neglecting your finances. Other signs include constantly borrowing bad credit loans, unable to control impulse buying, failing to follow a budget and having bad credit score for a long time.
Being smart with your finances means caring for your financial future. Begin today by being conscious with your behavior towards money.