10 Common Reasons You’re Struggling to Save Money (And How to Fix It)

You need to be more selective about where and when you go. Cut back on clubbing to once or twice a month and only on one night.

Be choosier about what concert or event to attend. Are you really that crazy about that band? Can you just watch the game on TV instead?

2. You Have Too Many Extras

You have too many extra amenities. You’re paying for premium packages on your television, have several subscriptions, pay for premium gym memberships, eat out too often, and drink specialty coffee regularly.

Do you really need 300+ channels on your TV?  Can you get by with just 100? How about settling for a Netflix, Amazon Video, or Hulu membership instead?

Consider cutting back on those subscriptions. Think about what you really get out of that gym membership—can you switch to a cheaper or free gym? Eat out less and reduce your coffee-to-go purchases.

Look online for recipes to make copycat coffees and slow-cooker meals. Doing so can save you a lot of money in the long run.

3. You Want It

You’re spending money on the newest car model, upgraded phone, bigger TV, and other things you think you need.

This can become an expensive and excessive habit. Did you know that as soon as you drive that brand-new car off the lot, it loses about 9% of its value?

Stick to replacing items only when they break, rather than upgrading to the next best thing just because it’s available or to impress others.

A little modesty can go a long way. People will respect your humility and honesty more than the bling you own. If you don’t think this is true, you might have deeper issues or the wrong kind of friends.

4. You’ll Start Later

When you’re young, saving money often isn’t a priority. But you’re missing out on significant future savings.

Consider this: saving $100 a month for 25 years at 3% interest will grow to $44,712.28. However, if you start late and save $100 a month for just 15 years, you’ll have only $22,754.01.

The secret here is compound interest. Shop around at different banks to find a savings account with a high interest rate, and start there.

5. You’re Not Prepared

You don’t prepare for emergencies. You don’t set money aside for broken appliances, medical bills, job loss, or similar unexpected expenses.

Not saving money for emergencies can lead to more debt and poor credit.

A simple emergency fund should have at least $1,000 plus the equivalent of 3 months’ pay.

If needed, open a separate savings account not linked to your regular checking account so you won’t be tempted to dip into it.

6. You Have Too Much Credit

You easily fall into the trap of getting too many credit cards. You have several credit cards, fuel cards, department store cards, and specialty shop cards.

Most of the time, the interest rates on these cards are high—around 13–15%. Falling behind on payments can hurt your credit score and impact your ability to make future purchases, like a car or home.

Stick with a single debit card and cash only. This helps you adopt the mentality of “If I don’t have the money in the bank or my wallet, I can’t buy it.” It also reduces impulse buying and leads to less spending.

7. You’re Paying Debt Wrong

The first and foremost expenses that should be paid for are housing, electricity, heating, and groceries. Next are items essential for your job, like clothes, transportation, and your phone—these are necessities.

After covering these essentials, focus on your credit debts. Start by paying off the smallest debt with as much money as you can spare. Once that debt is paid off, instead of spending the extra money, apply it to the next smallest debt. Repeat this cycle until all your credit cards are paid off.

When a credit card is paid off, close the account. You do not need to fall back into debt with it again.

Everything else are “wants.” Pare back on the wants—you don’t need them to survive.

8. You Don’t “Pay Yourself First”

You may think you don’t make enough money to be able to save. You’re living paycheck to paycheck.

Adopt the mentality of “Pay Yourself First.” With every paycheck you receive, put a little bit aside in savings before any bills are paid.

A simple $20 a week into savings can end up being about $1,071 a year (3% interest), which can grow to $5,356 in 5 years. It may look small, but it’s a start.

9. You Think Cost of Living Is Too High

Sure, you can’t help how much things cost, but you do have the choice of how much and where you will spend on these items.

You can choose to live in a smaller place, in a more modest part of town, or even in a different city with lower living expenses.

You can drive a smaller, more efficient car or take public transit.

You can shop around for lower insurance rates, utilities, and grocery stores.

You can find good-quality clothing at consignment shops or use online rebate websites for online shopping.

10. You’re Not Budgeting

Do you even know how much money is going where? It comes in, and it goes out, and you wonder why you don’t have any money left.

Having a simple budget and sticking to it is the surefire way to save money, pay off debt, and cut expenses.

When you actually account for every dollar you spend and see it on paper, it can be a shock to realize how much you’ve actually spent.

Learn how to make a monthly budget, stick to it, keep all your receipts, learn how to balance a checkbook, and stay on top of every transaction. You’ll be surprised at how much money you actually have left to save.

Final Thoughts

If you follow these simple suggestions, you’ll be successful at saving your money and paying off your debt. When this happens, you’ll end up being healthier without that financial stress, happier, and more in control.

Guest Writer Bio: Tracy Stine is a Deaf & legally blind mother of 2 teenagers. She’s a freelance writer, blogger, and Kindle author.