Is your savings account bone dry? Have you really thought about the reason why there’s no money in there?
The truth is there are a lot of reasons why you don’t have money in savings. It might be that you’re living above your means or that you’re going broke saving money. Either way, once you understand where all your money is going, you can start building a savings account.
You’re Living Above Your Means
Who doesn’t love to have nice things or to go out? Unfortunately, your income may not allow for such things. This means that you may be using all your extra money to cover your expenses or using credit cards to make it work. Either way, living above your means will definitely prevent you from having money in a savings account.
Your Debt Is Out of Control
Another reason you may not have money in savings is because all your money is going to debt payments. You can stop this by avoiding making any additional purchases on credit. Once you stop using credit, you’ll finally be able to make a dent. Once the debt is paid off, you can start putting money into savings.
You’re Paying for Things You Don’t Need
Do you have a stack of magazines that you’re always planning to read? Are you paying for satellite channels you don’t watch? Look at all the money you spend each month and ask yourself if you really need that expense. If not, cut the expense and put the money saved into your savings account.
You Aren’t Treating Savings Like a Bill
Stop thinking about savings as a maybe and make it a priority. Each pay period, take part of your paycheck and put it into savings. You can even have your employer deposit part of your check into savings or set up an automatic savings plan. Either way, if putting money into savings is treated like a bill, you’re more apt to build up your account.
You’re Going Broke Saving Money
Last, but not least, just because something is a great deal doesn’t mean you need it. The only exception is if you can get the item for free and then donate it. However, buying a pair of shoes because they were 50% off, even though you have twenty pairs, is eating up money that could go into savings.
When something bad happens, what are you going to do? You need money in your savings account to cover emergencies. The good news is you can make changes so that you have the extra money to put into a savings account.