Savings made up for just 3.7 percent of disposable personal income in August, according to U.S. News, citing a Bureau of Economic Analysis report.
There are many reasons why people feel they can’t save money, but here are excerpts from Gary Foreman at U.S. News who says there are ways to overcome those and save anyway.
1. I haven’t been capable of saving before. This is a self-defeating prophecy. If you believe you can’t save, you’ll make sure to prove yourself right. Believing you can save is the first step.
2. I don’t make enough money. No matter how much you get paid, there are always some things you can cut back on to put towards savings.
3. I have to pay my debts first. Paying off debt is a form of saving, because you are cutting back on future interest payments when you do. The hard part is avoiding new debt.
4. I don’t know much about money. There’s no secret to saving money. Keep track what you earn and have to pay out. Put some of what’s left over in savings.
5. I’m not disciplined enough. Just accepting your lack of willpower isn’t going to fix the problem. Find professional help if necessary.
6. The economy is too harsh. While it can be harder to save with lower wages and higher prices, waiting for the right conditions to save may never happen.
7. Rising prices won’t let me. While you may need to cut back savings, stopping completely is the wrong thing to do. In a time when you have more expensive bills, savings may be the only way to pay them.
8. My spouse is bad at saving. Set goals together. In extreme instances, you may need separate accounts.