Top 3 Reasons Why You're Failing at Saving Money
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.
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.
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