We have heard over and over again that people fail to save because they spend way too much money. If this problem seems to happen to you as well, you may investigate potential reasons. Consider whether these things are happening to you:
- You are making excuses: It’s a problem that happens to many people and it should sound quite familiar. You may say that you have never been good with managing money. You may also complain that it’s too complicated to understand all the financial information and you are not good with numbers. If you are making these excuses, you are closing yourself to the possibilities to having financial growth in the future.
- You rationalize expenses: It’s true that you may deserve a vacation once in a while, but having an expensive trip can be bad financially. You shouldn’t easily rationalize any major spending. You shouldn’t be trapped by the “life is short” syndrome. In fact, life won’t feel so enjoyable and short if you are still working hard to pay your bills when you are already 75. Rationalization of your bad spending habit can actually be a way to protect your ego and this can prevent you from being responsible financially. It’s true that you can splurge a few times, but there should be a good balance in your life.
- You don’t want to be seen as cheap: We are often concerned about what others could judge us. We are afraid that people think less of us and this prevents us for spending money conservatively. You seek to improve your self esteem by buying things excessively.
- You think too much: In some cases, you want to be smart with your money, which causes you to take too much time to make some decisions. Once you know that it’s a good decision, then you should do it immediately.
- You are afraid to ask questions: Many of us have various money-related questions that we are afraid to ask, because we don’t to sound foolish in front of other people. If you are not sure about something, you need to ask someone about it. If you believe that you may get a discount for something, you should ask about it as well. Don’t afraid to ask and you should try to be smarter about how to spend your money.
- You seek instant gratification: Instant gratification can be really satisfying, but it’s financially deadly as well. You won’t be able to save money if you constantly run wild and make various purchases. This can happen if you make shopping as your hobby. So, every weekend you go to expensive shopping malls as a way to gratify yourself. Even if you feel better at the end of the day, the bitter realization will follow shortly afterwards.
- You trust people easily: Some people seek to advantage of you. Self proclaimed experts, solicitors and salespeople are experienced in convincing unwary targets. Be wary of any get rich quick scheme or a deal that seems too good true. Always think that people may seek to scam you.