Top 3 Reasons Why You're Failing at Saving Money

Top 3 Reasons Why You're Failing at Saving Money

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Americans are in the midst of a savings crisis. A massive 63% of Americans don’t have enough savings to withstand a $500 emergency. Even more concerning is that there is a growing percentage of Americans with no savings at all. 

When it comes to your finances, no amount of positive thinking or good attitude will help you grow your bank account unless you back it up with some action. Too many people are plagued with bad financial habits. Whether they’re overspending, not being realistic, or not setting effective goals with sound financial plans to achieve them, it's much easier to pretend your problems don’t exist and go about your daily life, than to make an uncomfortable change.

Here are some major reasons why someone might fail at saving their money:

1. Wasteful Spending

There are remarkably wasteful ways Americans spend their money. USA Today listed 20 of the top ways recently, and chief among them were: wasted energy bills, daily coffee purchases, premium cable packages, traffic tickets, lottery ticket purchases, unused gym memberships,
tobacco, alcohol, gambling, ATM fees, expensive (unneeded) warranties, credit card interest, and so on.

Wasteful spending can come in many different forms, and it's not the same for each person. For some, weekly stops at the local mall might be a problem. For others, it might be an addiction to pricey electronics and gadgets.

For a large percentage of people, however, it's food spending that's to blame for their money troubles. If you're heading out to a restaurant for lunch each day, for example, you could literally be eating your savings away.

2. Lack of Budgeting 

Everyone can benefit from keeping a monthly budget, but too many people don’t use this tried and tested method of monitoring spending habits.

Maintaining a guide to your monthly spending helps people to make better spending decisions. And if you're not tracking your spending, chances are you're wasting all sorts of cash each month. 

3. Priorities

Too many people don't put their finances first and simply let the chips fall where they may. Sadly, letting your finances "happen naturally" is the worst way to get ahead, mostly because life happens, bills happen, and it's easy to get off track. The old saying, “Hope for the best, but plan for the worst,” applies here. 

When you don't make your finances a priority, it's inevitable that your situation won't change much. If you really want to get ahead, you have to put your money first and take actionable steps to save, pay down debt, and invest.


Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website:

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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