While knowing how to save is a great attribute to know. I just wonder do we actually know what we are doing wrong. Its easy to say, “save 10% of your paycheck” but if you don’t have 10% at the end of the month you will just tell yourself that all your money is going to bills and other expenses. Lets take a look at many traits we all do and how stopping them can gain us more money at the end of the month and essentially saving more money.
1.THINK YOU DON’T MAKE ENOUGH
This is one of my pet peeves, if you have a paycheck then you have money to save. No matter what. If you stop making excuses then you can actually start moving in life rather than staying stagnate. Plus if you don’t make enough then add another source of income but that’s for another blog post. Change your mindset on money and stop becoming the victim, if you want to stay broke (living paycheck to paycheck with no savings) then telling yourself you can’t do it will bring you no change. Like will smith said people who say I can and I cant are usually correct. Don’t let your mind be the reason why you cant have financial freedom.
2.NOT UNDERSTANDING WHAT BROKE MEANS
I come across this issue many of times, and I use to be the same way. People start to think they are what their pay-stubs says they are. And this is not true. If you make a lot of money, great that just means you have a large income. That does not mean you can never be broke. Living paycheck to paycheck no matter how big or small it is… IS BEING BROKE. When you have no savings but make over $50,000 then you are 1 check away from being homeless and that my friend is BROKE. Sadly, we get a new job make more money and we start to “up” our wardrobe, our lifestyle, and forget to up our savings. Nothing changed, from the outside you may seem rich but from your bank account you are broke.
3.IGNORING THE ISSUE
While many of us are different, I may spend most of money on clothes you may spend it on shoes, or food, etc. You must find the problem in your finances. There is always room for improvement. I should be able to ask you how much money do you spend on food, gas, utilities, rent and without a thought you should know the answer! If not then your spending money without a clue of where it’s going. In 2017 there is no reason for you not to have an app that tells you exactly where your money is going. If you haven’t already sign up for personal capital or mint both sites will identify your problem and you can start beginning to finding a solution.
4.BEING OKAY WITH AVERAGE
Before I started this blog I was super surprised by how many Americans were in debt and how many people were racking up credit card bills and not saving. I have been told many times you are doing better than the average 24 year old, or you are the 2% of america that is doing it right. But that’s not good enough for me. Saving $1,000 shouldn’t be your end goal, it can be your right now plan but not the mark of your financial path. Saving and balancing money is not a destination its a constant journey.While at the same time you should never compare your finances to other people. If you have 5k saved and someone has 15k saved, that doesn’t mean you are doing terrible. Some people have kids, some people have 2 incomes the point is, your financial goals are yours. So write them down and go after them!
5. NOT DESIRING MORE FOR YOU AND YOUR FAMILY
This may sound crazy, but when I spend to much time on jcrew or madewell, I start looking at houses. I do this because I know I want to eventually buy a house and start building wealth for me and my family. Buying a new sweater now may be great for the moment but at the end of the day I know what I want. When you have an idea of where you want to be you will have no excuse to grind until you get it.
6.SPENDING EXTRA MONEY
So we all know how easy it is to spend a bonus or a tax refund check. These can be the easiest way to save money or start a savings account. However, it can also be the easiest check to blow! The best thing to do is spend only 10% of the money and send the rest to savings. Even for me this can be tempting as I am writing this post in December and me and my husband got a Christmas bonus, all of a sudden my nails look like they needed to be at a nail salon, my make-up looked old, my house looked empty like it needed more furniture. I had to quickly move it to savings or I would of had a new look that day!
7.LIVING FOR TODAY
Ya, ya you only live once. But I am not trying to live broke the whole time. If you save now you will not have to worry about money in the future. That’s why investing and savings is so important. I have to tell my household we are living cheap now so we can live lavish later.This way of thinking can be so hard, especially with social media. You see friends going on trips, you see ads and marketing being shoved down your throat. But if you can dedicated just a few years to a hard strict budget the rest of your life could be way more enjoyable.
These tips can be somewhat heavy sometimes, and make you feel like you are doing everything wrong. That is not my intent. I want to see everyone around me prosper, and majority of financial problems come from the way we think about money. Saving is all psychological, you have to imagine a future that isn’t here. You have to believe that financial wealth is better and more important than you circumstance. Believe me its not a destination and no one is perfect, learn from others and give advice when you know it has help you. Your financial path is a journey, so make it worth while.