Everyone agrees that saving money is a vital aspect of our financial existence. However, personal and circumstantial reasons may hinder its execution. Most often than not, people find themselves caught in the middle what they intend to accomplish (i.e. savings) and what they perceive their pockets can afford. The interaction of these two factors may result in a friction of interests.
Saving a portion of your funds may appear difficult; however, understanding the underlying mechanisms that prevent you from doing so will help you overcome the obstacles. There are various reasons why people don’t save money and below is the top 5.
Living on the margin of the society
People may genuinely want to save money – they just don’t have any money to store. Their economic condition won’t simply permit them to do so. In the US, it is estimated that about 30% of its population does not have a savings account, while 8% do not have bank account at all.
Here and now
The “I want to savor and live the moment” or Here and Now mentality topped the list of reasons why people flop at their money saving attempts. There is always an endless series of product in the market, and we are constantly exposed to advertisement.
It is meant to be spent anyway
Yes, money is meant to be spent – but not in a reckless, squandering way. Sort out your priority by listing what you actually need on top and what you simply want at the button. This will give you an overview of your expenses.
No one is saving anyway
People tend to use this band-wagon act as a convenient excuse for not saving. Combine this with number 2 and the result could be financially devastating.
Let’s face it! Though in theory we treat the act of saving money as our main goal, in practice it really is not. This is due to the fact that priorities are not sorted out. Realigning your individual interests and making saving your primary responsibility will help you store funds.
Personal and circumstantial reasons are among the top reasons why people do not save money. The tendency to live in the moment, unsorted priorities, as well as the people’s economic standing in the society all plays a role in either assisting or hindering the savings endeavor.