Why is Saving so Hard?

When saving money feels so hard, it is often because spending is so easy to do! Spending money is usually an obligation to pay bills. Some of our spending is because we like new items or prefer convenience over time (eating out rather than cooking). Level of income, feelings, and how we were raised often play a role in our rationale for spending or saving. Saving is not easy or natural for most people.  Therefore it requires intentionality.

As humans, we are constantly bombarded with financial decisions (i.e. child needs new sneakers; the electric bill is due; the washing machine broke; or buying  a new T.V.).  The constant presence of social media, advertisements, our friend’s social postings, and tracking of celebrities lifestyles, has amplified the pressure to have “more”.  According to a survey through LendingTree, almost 40% of Americans overspent to impress someone else. 

Common Reasons it’s Difficult to Save: 

• We don’t feel a sense of urgency, as we may in the years before retirement and feel we can postpone the decision to save.  
• Many might not consider or even want to consider the possibility of a major life event (i.e. loss of a job, unexpected funeral, physical disability, or major medical events, etc.).
• It may be hard to understand how savings could reduce financial burdens in the long term.  
• Feeling overwhelmed when thinking about all the different areas of our lives we might need or want to save for can be exhausting. For example: college, house, emergency fund, insurance deductible reserve, retirement, etc.
• When people don’t make a livable wage compared to cost-of-living expenses, saving can feel impossible.
• It’s too easy to access savings accounts or we may have a spending compulsion. 
• If spending money on luxury items instead of buying necessities and saving for future needs, people often have trouble navigating even small bumps in the road.
• We may be unsure how to save or where to invest funds as there are many options; some of which may be scams. 
• It may be hard to save if you and your significant other have different spending habits or  financial perspectives.
• Living on irregular income makes it hard to plan or save.

Easy Steps to Start Saving Automatically: 

• Ask for Help! See the list of resources at the end of the article. 
• Set up a budget.  For example, start with recording your income and expenses are each month so you have a better grasp of your spending and where you might be able to save.  
• Ask a friend or family member to be your accountability partner to help you with saving. 
• Take advantage of Employer-Provided or Matching Plans on Benefits!
• Retirement plans.  See if your employer matches a percentage of your contributions- this equates to free money. You might also get a pretax deduction on your wages for your contribution to a retirement plan. 
• Other savings from your employer (sign up for a Health Savings Account or utilize their babysitter or education credits). This is money they provide to you or may help contribute to your accounts and often save on taxes. 
• Set up an Automatic Deposit from your Paycheck! Employers often let you set up automatic deposits to more than one account with your paycheck. Set up an auto deposit from your paycheck to flow into a designated savings account each pay period. 
• Retirement or financial institutions also offer automatic deposit options, and this can help you contribute even a small amount ($25/month) to a plan or account to get started. 

• Bring Back the Piggy Bank! Take any change you have and put it in the jar each day or week. A can, an old jar, a shoebox, an empty water bottle, etc. all could be used as a piggy bank.  This is also a great way to teach and practice savings with kids or grandkids.
• Take a financial workshop or request resources from your Local County Extension office, or Financial Institution, etc.! 
• Reward Your Efforts! Saving money can be hard work. It takes perseverance to succeed over the long run. Rewarding yourself and/or your family for reaching milestones on your savings goals can be a morale boost for everyone. For example, celebrate with a special dinner for reaching the goal.
  

America Saves Week 

#WhatMattersMost about saving automatically? Simply doing it — setting up automatic deposits to your savings account no matter how small. #ASW2024 @AmericaSaves