Reasons Why You Are Not Yet Saving

Reasons Why You Are Not Saving Good Enough in Philippines

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.

You need to take charge of your finances if you want to be able to continuously save money. Once you know why, you can start making improvements and saving money. Let’s explore the causes of your pressing concern, “Why can’t I save money?”

Top Reasons Why You Can’t Save Money

Take a look at the reasons why you cannot save enough money for yourself. You might be experiencing any of these!

1. You still trust the old mindset.

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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.

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You have to prioritize everything that you are paying for in a month, like your bills and groceries. This will help you determine what else should you save for aside from the regular expenses that you have.

You can start creating realistic financial goals for yourself like your child’s education plan, or your retirement plan. In this way, you would have a glimpse of what you should be doing with your money.

What to do:

Write down your financial goals. Don’t keep it all in your head. You can also keep a note of all your future plans and how much can you allocate for each plan.

3. You have not started the habit of saving.

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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. But you can break it today! If you are having difficulties in saving, you can start doing it day by day.

Even trying to save up 20 pesos and putting it in a coin bank would help you break the habit.

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.

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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.

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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.

6. You easily give in to impulse buying

Many people make impulsive purchases, but if you keep doing so, your efforts to save money will keep failing. While you won’t be able to completely avoid stores, you can reduce the likelihood of impulse purchases by adhering to the so-called 24-hour rule.

What to do:

This is the rule: Whenever you’re tempted to buy something you hadn’t planned to, make yourself wait a full 24 hours before doing so.

Most of the time, during that time, you’ll come to realize that you don’t actually need the thing in question, at which point you’ll be able to take the money you would’ve spent and put it in savings.

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7. You are in debt

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Your ability to save money is reduced as a result of making debt payments. Repayment ties up your income and prevents you from saving money, regardless of whether you are in debt out of need or a poor choice.

We frequently fall into financial traps that make saving even more challenging. Rather than saving money, you are paying off debt. In order to pay for unexpected expenses because you lack the necessary funds, you must take on extra debt.

What to do:

More debt implies more payments, and the cycle keeps repeating. Since you must make these payments, utilize your budget to identify areas where you may decrease costs in order to free up money for savings and debt repayment.

Key Takeaways:

Hopefully, you’ve identified a few barriers to your ability to save money as well as strategies for getting started.

Read More:

6 Effective Strategies To Pay Your Debts Philippine 2022

3 Easy Steps to Determine Your Financial Goals

What are the Best Personal Finance Website Blogs in the Philippines?

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