Saving and Money management is important in life – you cannot continue to work until old age right?
So why is it that some people don’t or won’t make effort to save money? There’s a difference between knowing you should save and actually doing it.
Most people know how to spend money but how to save money is so difficult for them. This problem with saving money is not limited to individuals alone, some countries make so much money in certain seasons but fail to save for tomorrow.
The reasons below are why people can’t save money…
1. FAILURE TO SET GOALS
It is important that you have a target, this keeps you focused on what you are trying to achieve. If you do not have a goal on how much you want to save and the purpose for the money it is easy to let other wants takes priority.
To achieve this discipline yourself and look at the bigger picture of giving yourself financial security.
2. DROP-IN SOURCE OF INCOME
When people experience a sharp drop in their streams of income saving money becomes difficult. In a situation where your income cannot pay for basic bills and important needs, this becomes even more difficult when you have a family and children. In this situation, it is necessary to cut your expenses.
Do away with things you do not actually need. Take a coffee at home, stop drinking beer, trim your Tv subscription, these few steps will help in this situation.
3. SPENDING ATTITUDE
We live in a world that loves to spend, the government encourages spending because they believe spending drives the economy, even if it means spending money that is not available.
We live in a world of delayed gratification and unfortunately, we are facing those consequences today. This is a huge problem in our society where people always think about spending and not saving for tomorrow.
4. HUGE DEBT
Having debt is not entirely a bad thing, as long as you know the right time to borrow and pay the money back. It becomes difficult to save money when you have too much debt to pay because a sizeable amount of your income is used in servicing this debt.
Debt is big business and extremely profitable to financial institutions, be smart about borrowing.
So many people grew up not having knowledge about money-saving. Lack of formal financial education has made so many people spend money recklessly without saving for tomorrow. Financial awareness is needed by everyone.