Most people would like to have a sum of money put aside in case of emergencies, or simply for the future. However, it isn’t always easy to save money, especially when there are constantly other calls for a household’s cash. Of course, every household finds it difficult to save money for different reasons, but some of the more common include the following.
*Lack of a budget
Every household has a number of expenses that they have to cover each month – usually household bills, rent/mortgage, transport and foodstuffs. Money for entertainment, clothing and unexpected costs also needs to be found. Unfortunately, rather than waiting until all the necessary expenses have been paid, many householders spend money on luxuries and then realise, when they get to the end of the month, that they have nothing left. Sticking to a strict budget really is necessary to save money.
Unfortunately, temptation is always in the way. Every time an individual walks into a shop, switches on a television, browses the Internet or even just goes for a walk, advertising is to be seen. Even those on a strict budget could decide to treat themselves – when they see everyone else buying products they want, it is hard to be strict. There is also a certain amount of wanting to keep up with peers. This can particularly apply to children, but adults can be just as guilty at times.
*Pay cuts or plateaus
The current economic situation is such that many people have to accept either a cut in salary or, perhaps more likely, no rise in line with inflation. Unfortunately, costs are still increasing, so people are stretching the same amount of money an awful lot further. This obviously eats into any money that they would otherwise have managed to put in the bank. However, the recession exacerbates the reason that people need to save – so finding a way round a decrease in disposable income is vital.
Despite the recession, inflation is still an issue. Foodstuffs are constantly going up in price, as is petrol/gas and heating costs. These are costs that it is very hard to cut down on – although it is always worth looking for different ways to make savings – and so they eat into disposable income. Households who previously managed to put a little money aside each month will struggle to do so and even if they do, their money will probably sit in an account without earning much interest, so it often seems to make more sense to spend it.
Since the recession began, many people have found clever ways to make the most of their money. However, not all of these money saving ways are ultimately money-saving. Many discounts offered in the shops for goods encourage people to buy things that they don’t really need. Shoppers need to think twice about what they buy – a bulk purchase of toilet roll or cheap washing powder will almost certainly be used, but buying a cheap sofa when there is already a perfectly good sofa at home really could be a false discount.
Anyone who knows that they really should be making an effort to save money should really consider the factors above to see if any of them are applicable. Working out exactly where they are going wrong could help to find an answer to their problems.