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22/05
2019

6 Reasons Why You Struggle to Save Money

6 Reasons Why You Struggle to Save Money

Many of us struggle with a financial problem from time to time. It’s nice to have savings there for a rainy day or save up for a big purchase.

Saving is difficult, but why?

Read below to find out the reasons why you can't save money.

1. You Think You Have Loads Of Time To Pay Off Debt 

You may have a lot of time to pay it off, but surely you want it paid off sooner rather than later.

Being debt free is a great feeling. You no longer have to worry about missing payment dates, making enough money to cover minimum payments, or worrying about how you’ll afford groceries this month with that huge credit card bill.

Paying off all your debts on time will ensure you can access finance in the future if you need it. This could be something as important as a mortgage, student loan or car finance.

2. You Don’t Know The Difference Between Your Credit Card And Income

A new credit card does not mean new money.

A credit card is 'credit' after all. You are borrowing this money from the card company or bank and paying interest on it until you have paid it off.

Credit cards are helpful if you run into an emergency situation.

Don’t use the card for everyday spending or finances otherwise, you’ll be over your limit in no time, facing high charges and an extortionate interest rate.

3. Everyone Has Debt So It's Fine

Just because your friend has debt, doesn’t mean you should have debt too.

Not all debt is created equal though. Many people have mortgages over a 25-year period and many graduates have student loans.

You don’t want £25k debt across 3 different credit cards.

4. Your Cell Phone Plan Is Overpriced

Your cell phone shouldn’t cost you £60 a month.

Save on a cell phone by buying a restored or refurbished phone and having a sim only plan.

This way you’re not locked into an unfordable cell phone contract and you have the freedom to switch plans at any time. Or…dare we say it… go without a cell phone if finances get tight.

5. No Fixed Budget Plan = Can't Save Money

If you don’t have a monthly budget that you stick to, how do you know how much to save?

A regular savings deposit should form a part of your monthly budget as much as your electric and gas bills.

6. Can’t Afford Your Car

If you’re struggling to save money, take a look at big expenses, this includes your beloved car. 

Yes, it’s nice to have a brand-new car, but do you really need one? Could you get by with a cheaper model?

Consider if your city has reliable public transport to get you to and from work and major stores. Also, double up on exercising by walking or cycling to work instead.

Think of the several hundred dollars you could save each month by not paying for a new car, petrol, insurance and road tax.

Start Saving Today!

Calculate all your monthly outgoings and income and work out an affordable savings plan. Outgoing should include regular debt contributions. 

Get rid of any debt you have and start saving regularly. 

If you still can't save money, contact us today

For further information on how we could save you money, check out our price plans