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Why People Are So Bad at Saving Money (and What to Do About It)

The thing about saving money is that no one wants to save money. However, it could be heavily argued that most people indeed just save money for their needs, but if given the chance, with no responsibilities and obligations to think of, there’s a huge possibility that people would choose to spend their hard-earned money however they want. Unfortunately, saving money is just like any other obligation that needs to be done no matter how difficult it is.

It certainly doesn’t help that through technology there are now various ways to access money, and therefore more ways to also spend them. People are now encouraged to open a personal or business savings account online, yet the birth of online shopping, online food delivery (which costs more), and many more forms of spending done online just loom in the corner tempting you with deals and promos, adding to your struggle. Saving money will only give benefits and positive results in the future, and it seems simple to choose to not just spend money more than you need to, yet most people struggle and find it difficult. Why is that the case?

Your Money Has No Direct Purpose

One of the most crucial reasons saving money is difficult, is that sometimes people have no clue where their money should go. Most people would prefer being open without a single plan about where to spend and invest their money in for the fear of it just getting wasted in the end, but sometimes lacking a permanent goal would just tempt you to spend your money to ‘open’ choices, and there’s a huge chance that these choices would be just out of instinct.

So, drawing a goal (preferably long-term ones) about where you think your money should go is an important first step. Think of the future and how it would affect it if you choose to give in to temptation.

online shopping splurge

Thinking You Need to Save Money is Different from Actually Saving Money

Choosing to save money is of course a decision that only you can make, and then in order to execute it properly, it must become a habit. It’s understandable at the start if you think that such a small amount won’t help anyway, considering the huge amount of money that you need to pay for — like your own bills.

But every little thing, when combined, eventually becomes big in the end. Starting with small amounts could help you to simply get used to not spending all of your money. And then if done repeatedly, it would become easier as time goes by. By then, you could start gradually increasing the amount you save, and then slowly, you’ll get used to the idea of saving that it would be as breathing.

The Goals Aren’t Clear: Maximize All Your Senses

One thing that makes saving money a failure, is when your goals for saving money aren’t as detailed. According to a financial psychologist, Ted Klontz, people’s brains lack the ability to understand abstract concepts and can mostly pick up literal concepts, just like how they used to think when they were 6 or 7 years old.

This means that the plans have to be sensory in order for you to set the goal and achieve them. If you’re saving for a trip to Paris, look at posters and pictures of the Eiffel Tower, engage yourself in the Parisian culture through looking at images, watching videos about the Louvre, or learning their famous dish. Dr. Klontz says the more exposed you are to your goal — the more you can see, touch, or smell, hear, or feel your goal — the more it gets ingrained in your subconscious and a higher chance of your pursuing them.

Saving money is difficult for everyone, and just because it needs to be done, it doesn’t mean it’s easy. Don’t be too hard on yourself when you can’t save as much as you want to, but rather take the opportunity to take it step by step, and eventually, your success would be inevitable.

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