Most of us are aware of the benefits of saving money. A financial safety net is wise for the comfort and peace of mind of both ourselves and our family.
If we have dependents, we may find that we are more inclined to save money and prepare for the future. But if we consider ourselves a free agent, it can be difficult to maintain discipline.
Saving money can be tricky, whatever your lifestyle and circumstances. We may feel that we are putting money away but then cannot understand why it gets spent or we lose motivation.
Many people will attribute it to financial “emergencies” and just life in general. But it is rare that we genuinely evaluate why this situation happens time and again, and we keep failing to reach our savings goals. The reasons may surprise you.
You are too in the moment
For the most part, living in the moment can be very positive. We don’t allow our past regrets or failures inhibit our present day enjoyments. We also don’t allow fear of the future to interfere with having a great time. But there can be a thin line between being in the moment and burying our head in the sand.
In financial terms, our emphasis should be on the future. If we are not thinking far enough ahead, then it becomes difficult to maintain discipline. We want to enjoy ourselves right here and now. As a result, we can overspend or not plan for emergencies. If we don’t visualise some future financial difficulties, we may have no incentive to save.
Problems that need urgent financial outlay might be as mundane as home appliances failing. Or they could be as major as a legal battle or car accident. In a more positive light, future financial requirements might be the airfare to visit a loved one, or the money to treat our partner or children.
From an emotional perspective, living in the moment can be very positive. But we must strike a balance so that we can plan for our financial future.
Household problems
Many people find that one of the major financial outlays in their life is the failure of home appliances. A replacement oven, plumbing renovation (check http://watersoftenerguide.com for life saving tips on plumbing), or boiler repair can be expensive. It can be hugely disruptive for us and eat into our savings.
Some mishaps are perhaps inevitable. But we can protect our savings a little more by taking advantage of product guarantees when they are offered, or insurance. This may cost us a little extra a month, but it is far easier to manage than a sudden lump sum.
You believe it’s restricting your freedom
It can be normal to consider that saving money is restricting us. After all, it is taking away funds that we could use right now but are not supposed to touch. However, a change of attitude here can be beneficial. Instead of considering saving to be restricting our freedom, we can think that it is facilitating our future freedom.
We should consider our saving to be a wise and conscious choice, not something we hate and are forced to do. If we can look at saving in a more positive way, we are more likely to engage with it and have a successful outcome.
You haven’t budgeted efficiently
If we are not truly aware of how much money we have coming in and going out, saving will always be difficult. An accurate, effective budget will enable us to see exactly how much we need to live on and how much can be saved.
We can seek professional advice with this or even simply invest in an app to help us. Either way, be ruthlessly honest with yourself about the situation. Only then can you take control and make positive financial steps.