If this is you, don’t feel bad because you’re far from alone. Also, know that there is hope and saving money is more achievable than you think.
Here are 3 common reasons why people have trouble saving money and how you can overcome them.
1. You’re Dreading Emergencies Instead of Preparing for Them
Sudden expenses don’t care if you’re ready for them or not, or how much money you have saved. In fact, most people would tell you that appliances and cars seem to wait until the worst point in your pay cycle to break down.
Does this sound familiar? You start saving and diligently put away, we’ll say, $400.00. However, something happens to your car. These days the average car repair is anywhere from $500-$900. There goes that saved $400.00, plus you’re scrambling to find a few hundred more, while hoping and praying that nothing else goes wrong for a few months.
But then, your mechanic tells you they found something else wrong with your car, and it will be a few hundred dollars more. Now, you’re wondering how you can afford this, while you consider taking the free cookies in the waiting room home with you for supper tonight.
The key lesson here is you can’t just simply hope that emergencies never arrive, because they will. But, you can take steps to make sure you’re better prepared for them. Keep reading to find out how.
2. Your Savings are Your Only Safety Net
The scenario above can be avoided if that savings account isn’t your only means of coping with unexpected emergencies.
You may consider using a line of credit as a financial safety net, which could give you the opportunity to build your savings over time. A line of credit is revolving credit, which means you’re free to borrow and pay back the money on a revolving basis, and you don’t have to use it until you need it.
If you have no credit or damaged credit you might have a tough time getting a line of credit through a major bank. If this is the case, applying for an online line of credit, such as a CreditFresh Line of Credit By CBW Bank may be an option. Non-bank lenders aren’t as tightly regulated as major banks, so their lending criteria can be a bit more flexible.
3. You’re Not Living on a Budget
You may know that living on a budget is helpful, but you may not realize how much harder you’re making your life by living without one.
A budget is instrumental in being able to identify exactly where your money is going, which may reveal exactly why you’re having so much trouble saving it.
Some people find the prospect of creating a budget stressful because they’re afraid it may show them exactly how much trouble they’re in. However, creating a livable budget can actually reduce your stress, as it helps you feel like you’ve finally taken control of things.
You may have every intention of responsibly putting money away, but if you’re simply hoping no big expenses pop up until you’re ready, you may find it nearly impossible to save money. Make sure you’re keeping stock of your finances with a budget, and you have a financial safety net in place to keep you afloat in case an emergency arises.
To read more on topics like this, check out the lifestyle category.