Money Saving Issues – 5 Money Saving Issues and How to Solve Them

Saving, as simple as it may appear, is tougher said than done. To save consistently, you must first master financial discipline, which is difficult for many people. Furthermore, even if you are financially disciplined, there are several issues with saving money that may prevent you from reaching your objective. You will learn about these issues and how to effectively deal with them here.

How much money should I save each month?

According to the 50/30/20 rule, you should save a minimum of 20% of your income each month. Meanwhile, a maximum of 50% of your income should go into your necessities, while 30% of your income should be used for optional items. Basically, this rule provides a great way for you to budget your money properly.

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5 Problems of Saving Money

Here are five problems of saving money and how to handle each of them:

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1. Spending too much on rent

Rent is the biggest expense most people have to cover every month. But think about it, are you paying for more than you can handle? Also, is your rent too expensive for your income? Generally, you should pay no more than 30% of your income on housing. If you pay more than that, it can hinder your ability to save effectively.

One way to handle the problem of rent is to try looking for a more affordable apartment to live in. Ensure that whatever house you want to rent is very affordable for your income.

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2. No defined budget

Not having a budget is one of the major problems of saving money. A budget is very important because it helps you to gauge your spending limit and solves the problem of overspending. Also, having a budget accounts for every money you make and spend so you can understand how much you should be saving.

To knock down the barrier of budgeting, simply create a budget. Basically, to do this make a list of all your expenses every month and subtract it from your monthly income. Thereafter, you can save whatever money is left.

3. Lack of a measurable savings goal

Saving, just like any other goal is easier to achieve when you have a clear target to reach. Hence, you should try as much as possible to set a target for the money you are saving. When you achieve your goal, you will feel good knowing that you worked for it and stayed on track.

To make saving easy for you, just set up automated transfers every payday from your account to your savings account.

4. Having the “I’ll save when I make more money” mindset

Some people feel that they should not save since they do not make much money. Although it seems like this excuse makes sense, since making more money makes saving much easier, it is still not a good reason to not save.

Even if you do not make much money, it is still important to save. Basically, you need to start saving from the little you make so it will not be so difficult to start saving when you make more. Also, ensure that the amount of money you save is suitable for how much you earn. As your income increases, you need to increase your savings too.

5. Your comfort zone

Truthfully, it is difficult to add the habit of saving to your routine if you have not been saving before. Moreover, creating a budget, sticking to your budget, and setting a savings target may seem very foreign to you and this can make you nervous. This is another major hindrance to savings.

To break down this barrier, simplify things by beginning with what you can handle. Set challenging goals gradually. Begin small to allow yourself to acclimate to the world of saving. You will adapt to it with time, and then you can raise your target accordingly.

Final thoughts
There are various issues with conserving money. However, there is always a solution to every difficulty. You will discover several obstacles to saving money and ways to overcome them listed above. All you have to do is save 20% of your monthly paycheck since this money will come in handy if you have a financial emergency.

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