Why Cannot People Save Money?
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Why cannot people save money? This is a question that has been brought up multiple times in different places and situations. There are three common reasons why people cannot save money. People cannot separate their wants from their needs, they procrastinate on savings and they cannot build strong budget.
Firstly, some people cannot separate their wants from their need. One of the reasons for this is some like to impress the people around them, so they buy expensive items to make them look rich among their friends. They spend what they do not have which cause them to not have any money left to save up for emergencies or any other thing. When people earn money, instead of them using a small amount of it to do what they want such as entertainment, buying small things for themselves, go clubbing with their friends, and having a party with their family, they use a larger amount without to paying attention to their spending and thinking about their other responsibility.
Procrastination might not seem like a strong reason to why people do not save but it is. Once one has money in their hands, they do not think twice before spending they forget all about their plan with the money and just put it aside. For example in the book I read “The woman I loved. There was a woman named hope, hope was a woman who loved money and material things. However, hope had a two year old son who she had to plan ahead for his future to attend the best bordering school and college in the world, in order for that to happen she had to save up for it . Every time she got her pay check, she chooses to save for her son education later and spends her pay check on material things like she always does. 14 years later her son was ready to attend bordering school Hope did not have any money in her saving account to pay for her son tuition. As a result procrastination was hope biggest difficulty, which lead her not being able to save for her son education.
Furthermore, making a budget might seem senseless to others but it has actually been proven that it saves lots of people and big companies from debt. Most people spend and may not realize when the expenses add up to more than their budget could handle. A budget is particular amounts of money spend on multiple things. A budget helps you make sure you will have enough money every month. Without a budget, you might run out of money before your next paycheck. Budgets show you how much money