5 reasons why you still don’t have savings

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Do you find it difficult to save?

Despite working so hard and for so many years, you still don’t have any savings?

At the end of the month, do you ask yourself where all your money went?

They say that knowing the problem is halfway to the solution. Here are the five reasons why you still don’t have savings.

1. You still trust the old mindset.

Study hard, get a good job. Start a family, and in turn send your kids to good school to study hard and get a good job. This is a cycle that doesn’t work anymore, because you will continue working until you die.

The new mindset is not just about working hard for money, but to let money work hard for you. The first time I heard of it, it blew me away. This is just what you’re going to learn if you start knowing about how to begin a sound financial planning.

What to do

Attend financial seminar to get you started. Once you begin rolling, things will make sense and become easier for you.

2. You don’t know what to save for

Simply put, you don’t know what to use your money for in a long-term. And this is because you have not drawn up any financial goals. That’s why whatever you’ve earned now just goes down the drain.

What to do

Write down your financial goals. Don’t keep it all in your head.

3. You have not started the habit of saving.

It is hard for you to start saving because you have not developed the habit of taking control of your finances. And let me tell you, the first few weeks of saving is going to be tough. The temptation to spend is so strong, especially when you know you have money in the bank or in your wallet available for you.

Habits are hard to break, too. If it were easy, everyone could have done it.

What to do

  • Write down all expenses of the past one month.
  • Start a budget.
  • Each time you spend, list down the expenditure.
  • Remember, spend only the amount of money that’s left after you’ve taken the portion of your saving from your income.

4. Your income is less than what you need.

Maybe, after you’ve tried all the steps recommended above, you are still short of cash. You can do either one of two things: change your lifestyle or augment your income.

What to do

  • Look for ways to reduce expenses such as buying cheaper, yet quality, alternatives.
  • Increase cash flow, get a part-time job.
  • Learn new skills.
  • Find ways to make money from the things that you are passionate about, like baking or writing.

5. You can’t say no.

You have self-control issues. No one can blame you. I guess we all started the same way. We think of money as something to be spent. It’s easy to say yes to your friends’ invitation to an unplanned island trip. It might even be tougher to say no to your friends and family who want to borrow from you.

What to do

  • Stick with your financial goals.
  • Check that your budget has room for unplanned expenditures.
  • Learn to politely decline any invitation that you have not planned ahead.
  • When your family is in need, give what you can afford and provide help in other forms.