It is safe to say that spending your head-earned money is so much easier than trying to conserve it. Although this is not entirely a mystery, there are still people who have trouble growing their funds.
You may attribute this difficulty to save money as a manifestation of low income. You are earning less than what you need, so it’s hard to save your earnings. Others may also see this as a sign that they are not working hard enough. And while these may be the circumstances for some, it is not the case for many.
A 2018 study found out that we care more about earning money and not so much about saving it. This mentality may have been related to at least 55 million people in the US who failed to save up for emergency funds.
This is only proof that saving money is not as easy as it may seem. But much like most problems, this can also be solved by identifying the causes of your hindrances and creating a system to solve them. But before we tackle that, we want to highlight several compelling reasons why you should rewire your mentality into saving more money.
Why Grow Your Funds?
Having funds at your disposal can bring benefits to multiple aspects of your life. And they go way beyond just having money to buy your wants.
Good saving habits can help you build an emergency fund. These are essentially funds that you use in cases of unprecedented emergencies.
These emergencies include dangerous accidents that may have caused you injuries or damage that your property may have sustained due to calamities, among others.
This recognizes that life can be unpredictable, and you can never know what may happen in the next few moments. Emergency funds help you prepare for these uncertainties and make sure you can shell out money for unexpected situations.
Peace of Mind
A surplus of funds also gives you peace of mind. When you know where to get your funds to pay for your utilities and other expenses, it may lessen your stress and ease the tension of having to find funds for your needs.
Ultimately, you are saving not for your ability to pay but for your peace of mind.
But again, saving money is easier said than done. There are challenges that you have to identify and solve to witness your money grow.
Possible Challenges and Solutions
Mishandling Your Money
One of the worst challenges you have to overcome is mismanaging your money. Mismanagement essentially means you are not spending your money as wisely as you should be. One of the best ways to address this is by creating a weekly or monthly budget. When you create a budget within a given time frame, you have an idea of how much you can spend, and you can regulate your money better.
This can also help you identify what spending habits to avoid. Apart from that, you can also try to create a system of saving money based on this budget. Make sure to deposit a part of your savings to a separate bank account. Also, make sure that you choose the best bank for a savings account.
You can also set an achievable amount as a goal. Once you achieve saving this amount of money, you can then try to increase your goal and gradually increase as you hit your targets.
Your surroundings may also affect your spending habits. If you are constantly in an environment that tempts you to spend your money, the chances of you spending it will be higher.
An example would be visiting shopping centers and malls often. It can get tempting to buy new clothes or new shoes whenever you are always around stores that sell these items. With that, you must always be wary of how your environment affects your habits. If you can help it, try to avoid places (or people) that prompt you to spend.
This also includes your online spending habits. If you are really serious about saving money, you can uninstall online shopping applications to help you avoid causes for spending.
To save money as well as you can, you should have a clear objective on how to achieve it. With clear objectives, you can know what to do and what not to do to benefit your saving habits.
You must be self-disciplined and have maximum control of yourself if you want to grow your money. Sometimes, it is all about being determined to achieve your goal of savings.
Your savings can affect your lives in multiple positive ways. It is only right that you help yourself by developing good saving habits that can benefit you in the years to come.