If you’re one of those people you like “to live in the now,” you probably don’t care much about saving or preparing for the future. While living in the present may seem exciting and glamorous, it actually isn’t. This is because you will constantly find yourself needing to wait for your next paycheck, especially if you want to do something fun like taking a spontaneous trip or adventure.
If you don’t have a respectable amount of savings, Fcacu.org and other credit unions suggest looking into and overcoming these reasons.
- You don’t follow a budget. Having an opportunity to track your spending can help you identify ways to save. If you don’t know how to create a budget, you can start with listing down all your monthly expenses and know how much you’re spending on each item listed. Then, you can add up the cost and compare that to your take-home pay. If the total eats up or exceeds your earnings, you need to make some lifestyle changes.
- You have a lot of debt. If your debt situation makes you strapped for cash, you need to take an action to change your situation. You can start tackling your credit card debt, as they are costing you a lot more on interest. You can also apply for a personal loan with a lower rate that can help you pay off your balances. When it comes to other debts, it is best to cut back on other expenses or take a second job.
- You always make excuses not to save. If you’re young, you may feel that you can start saving later or when you reach a certain age. Other excuses for not saving include: "I don’t make enough money, I am no good with numbers, or I don’t know how to save." If you hold on to these reasons and attitude, you are likely to be trapped in a bad financial situation. It is best to start saving now — you can open a savings account or set up automatic deductions for savings.
Saving may seem like a chore, but it can actually give you a financial freedom. It will make you better equipped to buy or afford the things you want without having to borrow money or put things in credit. You can get the help of a financial planner or a credit union when building your savings.