I overheard a guy in my neighbourhood asking his friends how he could start saving because he has never thought of that in his entire life. This guy is around 26 and 28 years and according to him, saving money was never his priority, but because of his recent condition and how he had sat and thought about his life and future, it was time to give savings a trial. He called me into their discussions and asked this question: how does a man who earns $40 monthly save considering the bills he would attend to? To him, he doesn't see how such an individual would remove part to save. I smiled and explained to him that it is all about determination and being intentional.
The reason why most people still do not save is because of the above scenario and a few others I would be talking about. In this world today, it shouldn't be any surprise to see some individuals not taking savings to be a major importance in their lives because of their mentality. Just like what my friend said, some would prefer to complain about current economic issues like inflation for not saving. They will tell you how bills have taken a big part of their expenses and not think of saving. Just like most poor would do, their mentality doesn't make them see the future gratification of savings but would want to attend to their bills and cater for the family, and when an emergency comes, they start to run helter-skelter in search of help. The economic problem has made most people not give savings a chance as they do not see the need to do that when they already exhaust their income. There is power in allocating a little part of what you earn aside for savings but most wouldn't think like that.
Another reason is that they don't have a saving goal. There is no specific goal and this hinders them from saving because, when there is something they are looking to achieve, it would be easier for them to do that as small amounts set aside adds up, and tracking one's savings would motivate and encourage them to continue doing so. Most people who do not cultivate the habit of saving do not see any reason to do that since they are in a better situation financially. It is when they are hit hard, when they are affected financially and are broke, they will then realize how important it is to make savings a habit just like what the guy is planning to do.
Being an impulse shopper and paying for subscriptions they don't use. These are other reasons why they don't save. Still using the guy as an example because he fits into my topic for today. He is always fond of eating out, spending impulsively on wants and flexing around with friends. Most times, he subscribes to his Gotv and travels for weeks, and by the time he returns, he subscribes again once the previous has finished. These are what was taking his money away which made him give it a thought to start saving as he was losing out on money. It is what is happening everywhere and this act is stopping them from taking control of their lives and savings against the future.
Living beyond one's means. This isn't a new thing anymore as we have people who spend beyond their means and wouldn't try out savings. They believe in impressing than paying themselves first by investing in their future. When you live your life faking it all, there wouldn't be the thought to set aside some funds in case of emergency because you never thought there could be any. It is impossible to save when one's expenses outweigh his or her income and when an individual is spending more than what they bring in, there wouldn't be anything left to save.
There is no budget. The truth is that one wouldn't think of saving if there is no budgeting. Some people still suck at this process but it works effectively. I don't joke with my budget as it helps me keep track of where my spending goes, and how to cut back on my expenses and leave the part for savings. When one doesn't budget, it makes it easier for them to spend more than their income and at the end of the day, there wouldn't be any money left to save. The benefit of budgeting is to identify your income in relation to your expenses and determine how much to set aside for savings. When one budgets, it would make it easier to cut back on spending and save instead.
In conclusion, creating a habit to save is a crucial aspect of building one's financial freedom and creating a stable life in the future. Also, it is important to understand financial planning and aspects of creating a more disciplined life.
Thumbnail Image by cottonbro studio, designed on Canva|| Second image by Andrea Piacquadio from pexels
