Why is it so Hard to Save?

Frugal Living

Why is it so Hard to Save?

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There are many books and articles available online and on bookstores to teach people and give them tips on how to become rich, how to save money and how to earn because of the said savings. It is said that if a person saves ten percent of his/her allowance each day and continuously save the same amount of money for approximately twenty years and then invest that money in a bank paying fourteen percent interest rate annually then such investment can grow to a huge amount of money making that person rich and healthy. However, the question is this, if the key to richness is saving then why is it so hard to save? People find it very difficult to save a little amount of money out of the daily expenses. The answer to this question is logically very simple.

People find it hard to save because people find spending very easy and indeed a need. Financial analysts say that the proper equation for saving is income less savings equals expenses. Note that the savings should be taken away first out of a person’s income and whatever is left should be used for spending. However, most of the people’s saving formula is reversed which is income less spending equals savings. People tend to spend first on the basic necessities before saving what is left. Others also tend to spend the money left for non-essential goods. People find it very impractical to save first before spending because in this present time, goods are in continuous price hike while salaries and wages remain the same. In fact, most of the households have more expenditures than the income coming in. Majority of the people even don’t have the capacity to make both ends meet and this fact alone makes most of the people unable to save.

While saving huge amounts of money is not attainable for everyone, it is still good to save even an appropriate amount of money just to prepare for the rainy days such as when there are unexpected accidents, calamities and health concerns of the family. Yes, most of the people don’t have the ability to save regularly but one should bear in mind that if there is excess money present, that money should be saved and not be used in buying non-practicable and superfluous things. Being thrifty can actually make a person well-off so save now and experience the benefits it brings.

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Tags: • benefits • households • expenses • invest • savings • money • tips • how to • save money • how to save • money making • interest rate • how to save money • financial analysts •

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