Why Can’t You Reach Your Saving Goals?
We’re sure you know the importance of saving money but if you aren’t reaching your saving goals, it’s probably because there is a barrier in the way.
At this present time, that barrier could be the high cost of living. Thanks to rising energy and food prices, many of us are struggling to put money away into our savings. If this applies to you, then you might want to check out these money-saving solutions for some helpful tips.
Are there any other reasons why you’re not reaching your saving goals? Consider the following barriers to saving to see if they relate to you.
Barrier #1: Too much debt
If you are losing a chunk of money each month due to the debts that you are beholden to, then it’s understandable that you might not have the ability to make many savings.
So, what can you do about your debts?
Firstly, you should make a concerted effort to clear them as soon as possible. We know this is easier said than done, but if you can pay more than the expected minimum each month, you will clear your debts sooner rather than later.
If you’re struggling to pay off your debts, you might want to contact your creditors to ask them to consider smaller repayments. Alternatively, speak to a debt charity or a specialist in debt management as they may be able to contact your creditors on your behalf and give you other advice related to your situation.
Barrier #2: Not being prepared for emergencies
If you don’t have an emergency fund in place, you will have to dig into your savings every time a financial emergency arises. You might be faced with a large medical bill, for example, or expenses related to your car or house if maintenance issues suddenly arise.
If you do have an emergency fund in place, you may be able to cover some or all of these unexpected expenses without the need to touch your savings.
So, set aside at least 5% of your paycheque each month and add this money to your emergency pot. If you are in receipt of extra cash, perhaps because of a birthday gift or a Christmas work bonus, share this money between your savings and your emergency fund.
Barrier #3: Your spending habits
Are you spending too much each month? You might be and we aren’t only thinking about your household bills and other living costs that are a necessity. If you spend more than you need to on food and luxury items each month, you will obviously have less money to put into your savings. If you eat out on a regular basis or subscribe to every streaming service available, you will also put a dent in your finances.
Therefore, it’s wise to curb your spending habits. Find ways to reduce your necessary expenses and for anything else – such as takeaways or wardrobe items that you don’t need – put a ban on this spending if it prevents you from reaching your saving goals.
If we have related to your situation in this article, follow the suggestions we have given. If there are any other barriers preventing you from meeting your savings goals, browse this website for further advice and seek support from anybody who has an understanding of your specific situation.