Struggling to Save? Here’s Your Guide to Getting Your Savings Strategy Back on Course.

SAVINGS | FINANCIAL PLANNING | BUDGETING
Having Trouble Saving Money? Let’s Help You Get on the Right Track!
Written by
Lorraine Smithills
Last Updated
October 26, 2023
Dreaming of that perfect vacation or setting financial goals for the future? Saving is the key! But if you often ask yourself, “Why can’t I save money?” don’t worry – you’re not alone. With less than 40% of American adults stocked up enough to cover a $1,000 emergency, it might be time to dive deeper into the savings dilemma. Here however, we aim to help you regain your financial focus.

Understanding the Saving Struggles
Saving might sound simple, but many struggle. Multiple underlying reasons can disrupt your saving efforts. So, here’s a clearer picture of common saving issues and proposed solutions.

Not Sticking to a Budget
Money management starts with a budget. But having a vague idea of your income and expenses isn’t enough. A budget can pinpoint potential areas of spending abstinence.

Many people tend to be too hard on their budget, choosing to cut out leisurely expenditure in a bid to save more. But it’s crucial to have room for entertaining activities, new clothes, and dining out. After all, depriving ourselves from occasional indulgences can lead to frustration and eventual budget breakdowns.

Creating a realistic, balanced budget is key. It should include immediate needs, long-term goals and also some non-essential treats. And remember, keep your budget visible and regularly update your expenses to make sure everything is accounted for. Budgeting apps can be a great help with this.

Insufficient Earnings
Sometimes, even with discipline, your income may simply not be enough to save. When this happens, and with the state of the economy making pay raises less likely, consider earning some extra cash. This doesn’t mean working yourself to exhaustion, but rather finding side hustles that line up with your skills and interests. But bear in mind, if you’re an independent contractor, you’ll need to set some earnings aside to cover taxes.

Overpriced Expenses
Sometimes, despite meticulous budgeting, expenses can still dwarf your savings. Price hikes in housing and loan rates due to rising interest rates are some common culprits. Here, a reassessment of your expenses and spending habits can be instrumental.

Start by prioritizing essential and non-essential spending. Essential spending includes necessities such as rent, utilities, and debt servicing. Food and transport, while necessary, offer more flexibility for saving. For instance, for groceries, consider bulk cooking to save money, shopping in budget stores, and minimizing consumption of costly convenience foods.

Non-essential spending can also be critical for savings. Like, do you really need multiple streaming subscriptions? Can you cut back on your coffee runs or gym membership? Identifying and lowering these optional expenses can free up more money to stash into your savings.

Debt
Uncontrolled debt makes saving a real uphill battle. With the increasing debt trend in America, it’s easy to find oneself trapped. The solution here isn’t just finding the best savings account, but strategically tackling debt first before considering any substantial saving. Any extra income and potential savings should be directed towards paying your outstanding bills and loans. Important to note: curb spending on credit to prevent debt from piling up.

Absence of Emergency Fund
An emergency fund is like a cushion — it shields you from any unexpected expenses that could wipe out your savings. Ideally, it should cover around three to six months of your monthly expenses. If that’s too much for you, aim for a more modest amount. It’s much better to have something than nothing in case of unexpected strains on your budget.

Downplaying Savings Importance
Sometimes, saving isn’t a priority because of the mindset that it can wait until you’re earning more. Or maybe, there’s just always a pressing event or must-buy item. But remember, even small, regular amounts can snowball into a decent fund over time. Treat saving as an important part of your budget and prioritize it to form a healthy habit.

Disorganized Finances
It’s simple: if your money isn’t properly allocated, saving will be a struggle. Aim to have at least three separate bank accounts for daily spending, short-term, and long-term savings. This allows you to clearly see the money you’ve put aside versus what’s available for spending.

If handling multiple accounts sounds tedious, some banks offer savings accounts that allow you to earmark funds for different goals, saving you from the hassle of managing multiple accounts. Additionally, be on the lookout for banking services with no monthly fees for maximized savings.

Wrapping Up
Saving can be tough, especially when your disposable income isn’t much to begin with. Yet, by understanding your financial hurdles, making necessary shifts in your habits and implementing a solid budget, saving money becomes a reachable goal. Remember, the process of saving is more of a habit than a one-time event. Start small, be persistent, and slowly, you’ll see your finances improving.

Start Your Savings Journey Now!
Here’s a list of some investment platforms you might find helpful as you get started:

Public, Moomoo, and Webull

Features include:
– Commission-free trades of stocks and ETFs
– Buy/sell 25+ cryptocurrencies
– Fractional shares
– High-yield treasuries accounts
– Social community of investors
– User-friendly interface
– Powerful graphing tools
– Real-time level 2 data
– AI monitoring and price forecasts
– Free investing courses
– Buy fractional shares for any amount
– Extended trading hours
– Advanced reporting tools
– IRAs now available
– 24/7 customer service
All are offering Free Stocks for new signups!