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Why is Saving Money Always Such a Big Deal?

saving money

Even the wealthiest people sometimes are having a tough time saving money. Setting some money aside is really a big deal. For example, according to the 2014 Federal Reserve System’s report, approximately half of Americans did not manage to cover a $400 emergency expense. They had to either borrow money from somewhere or sell something. In fact, many U.S. citizens have ZERO savings.

According to another study carried out by the Transamerica Center for Retirement Studies, an average American does not have enough retirement savings. However, retirement planning is as important as saving money in general.

And if a person is still working, the good news is that they can manage to make an impact on how they retire. But the reasons behind not being able to save money can be different. For example, one reason is not being able to put a line between your wants and your needs. Your mind will justify your most simple wants and turn them into needs.

There are thousands of things that are competing for your money. These include clothes, utilities, devices, online purchases etc. It can be really difficult to figure out which of these items belong to the category of needs. And it will be equally hard to decide which must go under the category of wants. The bottom line here is to be able to control your spending habits and to spend less than you earn.

Actually, you are your own bank and you are in charge of controlling your funds. There are times when you just need to stop spending. Look at those natural savers. I am not talking about the people who are being cheap. I am rather talking about those who know what they need and what they can actually afford.

Another thing that may hinder your efforts of saving money can be your lifestyle. It’s almost normal for an average American to always rush somewhere. Being busy with family, work, community, you might forget to pay some bills or to take care of your finances. The expensive late fees will then stand in your way of saving money.

One more reason that you cannot save money may be that you just hate budgeting. If you are the type that thinks spending money helps release endorphins and feel cool, then maybe you should continue this way. Spending money or saving some is all about the personal choices you make. If you think you’ll save more when you start earning more, then it’s your choice.

How to save at least some money?

If, anyway, you think you need to save some money, these are the things you can do:

  • Keep track of your spending
  • Cut a few expenses
  • Automate your savings
  • Start really small
  • Contribute more to your retirement plan by adding say 2% every 3 months
  • Pretend it is a bill that you have to pay monthly

While there are so many reasons to not save, there are quite a few that are enough to make you start saving. One such reason is caring for your future. So, go ahead, save today, to enjoy tomorrow.

 

 

 


Also published on Medium.

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