We can’t save as much we intend to - Reasons behind the truth

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By: tiarajoseph11
on 28th Sep,2015

Find out the reasons behind our overspending habits and take required steps to solve them.
reasons-for-minimal-savings

It is very common that people who fail to save for the future are having low self-control. But practically, saving itself is so difficult that it’ll take self-control as well as lots of attention. If you’ve quick and urgent costs to cover, then your other priorities like education and retirement will fall short from your focus because they’re normally less pressing.

There are so many causes or quick priorities which provoke people to overspend. People normally try to get out of debt caused by overspending their funds. If we look at this situation very closely, we’ll definitely see some patterns between those causes. So, here is the list of obstacles or causes which everybody encounter while trying for saving money.

1. Try to maintain high status

While living in a rich or high-society neighborhood, many people will think that in future, if they don’t maintain the same kind of lifestyle that the neighbors set, the neighborhood will ignore them. This is a fear of losing high-status. Those people would want to do anything to cope up with the elite class. They’ll buy expensive goods, costly furniture, luxury products to match up with those rich people. This costly living can gradually reduce your funds and consumes the major part of your monthly income.

2. Don't like being avoided

It is unfortunate, but reality. Some people just spend too much money for keeping friends’ company. They go shopping with the girls and also go for movies, concerts, lunch and dinners, and spend more than they can afford. Despite having not enough money for luxury, they bear the costs of their friends, just to please them. But tell me, what is the meaning of having those friends, who can leave you if you don’t spend dollars over them? Have your friends also spent money for your expenses? Think about it.

3. Expect sudden inflow of money

Sometimes there’s a possibility that you’ll be getting a big amount of money from anywhere - from your parents or from your friends as a gift, from your boss as a bonus/incentive, or you’ve won a competition or a lottery. But, that doesn’t mean you’ve to start spending without getting the money in your own hands. Of course, you’ve rights to spend it or save it, anything you prefer. But first let the money come to you. Normally people hear that they’re getting money, and they start spending, this only gathers debt, nothing else. Do you really want to pile up debts before earning?

4. Feel much comfortable with cards than cash

Whenever you pay by cash, you can feel the money going out of your hands, it’s a complicated feeling, but let’s face it, it hurts. If you use a credit card, you practically feel less bothered about paying it. It’s just like swapping the card and done, that’s it. For this reason, people use credit cards more often and overspend without feeling how much they could save if they just use hard cash.

5. Love to feel powerful

People feel powerful when they spend money. This is nothing but showing off your false power, originated from your pride. If you’ve enough money to spend over some silly reason, try to save it for future assaults. Because no one knows how much you’ll have in your hands tomorrow to spend on your daily needs.

6. Like a good lifestyle

Suppose you are currently maintaining a moderate lifestyle where you always give importance to your detailed priorities. It may be having a dinner in a big hotel, buying a trendy outfit, playing online games and more. This is the lifestyle you’ve become accustomed to. So, if all of a sudden you fall into financial hardship, you may not have these facilities or you may have to cut off expenses towards these items. The question is, can you do it? If you don’t change your habits and continue making such expenses, I am afraid to tell you - you’re only increasing your debt burden, nothing else. To avoid such debts, you must remain calm and reduce those unnecessary costs.

7. Often act like a child

Sometimes people act like a child with their finances. They just want to spend in any necessary or unnecessary things. These people must realize that money isn’t the thing which should be wasted. Fraudsters and con artists easily consider these people as their prey.

8. Can't say "No" easily

This is a very common issue for all of us. Whether your son is asking for a new toy or your husband is eagerly wanting to buy the newest PlayStation console game, in both the cases, you can’t say no even if you can’t afford that item right away. Your loved ones will feel like ignored and they may get angry with you, but it’s also true that if you don’t consider the need of money over emotion or sentiment, you won’t be able to manage the main requirements of your family anymore.

Read more: Mind tricks to help save money

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