If the balance in your savings account isn’t growing fast enough, or even worse, if you cannot seem to save any money at all, a common budget buster might be to blame. Sadly, you’re not alone in missing your financial goals. So, how can you change this?
According to the 2019 GoBankingRates.com Survey:
Nearly 70% of Americans have no savings and live paycheck to paycheck!
2019 GoBankingRates.com Survey
Click Here To Read The GoBankingRates.com Article
Here is a summary of the breakdown and it is not pretty…
- 45% have no savings at all!
- 24% have less than even $1,000 saved.
Just the first two levels account for 69% of the population having less than 1K USD in savings!
Then the rest:
- 12% have between $1,000 and $4,999
- 5% have between $5,000 and $9,999
- 5% have between $10,000 and $19,999
- 4% have between $20,000 and $49,999
- And only 5% have between $50,000 or more money in savings
Note that the above survey was done before the global Covid-19 pandemic.
Today, the situation is probably even worse.
Our Cousins Across The Pond Do Not Seem To Be Fairing Any Better.
In 2016, a study by The Money Advice Service has revealed that
Almost half of the UK adult population is financially unprepared for any significant unplanned expenditure.
44 percent of respondents reported that they have less than £100 in savings.
2016, The Money Advice Service
Click Here To Read The Statista.com Article
Are you one of these people? Is your family living paycheck to paycheck and has no savings?
If you are, then as soon as possible, you must change this situation, especially in uncertain times. Fortunately there are steps that you can take to get your finances back on track.
Even if you have some savings it is definitely the time to find ways to save more money.
Use these strategies to stick to your budget and achieve your financial goals:
1. Avoid Impulse Shopping.
If impulse shopping is your weakness, and you know who you are, resist the temptation.
- If you have to go shopping (only) for a needed item, go with someone that can help you strengthen your resolve.
- Make a list before you shop and then buy only the items on your list.
- Leave your debit and credit cards at home and only bring enough cash to pay for the needed items.
- Going to the mall or any other store should not be your form of entertainment or your “hobby”.
2. Seek To Understand What Triggers Your Overspending Behavior.
For example, if you find that you’re more tempted to abandon your budget when you’ve had a rough day, stay home and off the internet. Only go shopping when you’re well-rested and under less stress. Retail Therapy is a fallacy and does not work so stop fooling yourself..
3. Identify Specific Items That Are Hard For You To Resist And Avoid Them.
If there is a certain store or website where you consistently seem to go over your planned spending, find new, less tempting locations to shop. If you are buying a new tool, gadget, shirt or pair of shoes every time you go shopping, stop.
4. Get Organized.
Implement a (new) method of organizing your important papers and receipts if “forgotten bills” seem to constantly surface and derail your spending goals.
- If you forget to pay a bill, you may have to pay a late fee and interest. Those extra charges can add up quickly!
- Set reminders to cancel memberships and other subscriptions before they auto-renew to avoid paying for services you no longer use.
- Use the tech that your already have to your advantage. Or just write things down in a calendar or journal that you check EVERYDAY!
5. Shop For Better Rates.
Just because you’re satisfied with your current service provider doesn’t mean that you shouldn’t periodically shop for a better rate.
- Every few months, review your expenses and seek ways to reduce the amount that you pay for many common services, such as your telephone bill and car insurance.
- When you contact your provider, ask if you’ll save money by bundling services, or cut back on features that you seldom use. While your provider may not reduce your bill, it doesn’t hurt to ask.
6. Watch For Unusual Spending.
Periodically review your expenses and see if you can identify an area where you frequently overspend. Most of us typically overspend in a specific category.
- Challenging categories for most folks include clothing, entertainment, transportation, travel, food, and housing.
- Once you’ve identified a category of expenses that seem to break your budget, seek ways to make smarter, less expensive choices when you buy things in this category.
- Reducing your spending in a specific category can be very challenging. For example, if your housing costs are eating up too much of your budget, your only solution may be to move to a smaller or less expensive location.
7. Get Outside Help And Advice.
If you find that you’re frequently over budget or have difficulty meeting your financial goals, seek professional help.
- Most accountants and financial planners can offer sound advice to help you learn how to plug the holes in your budget and gain control of your finances.
- You can find lots of free and low cost advice on budgeting and financial planning online. You can start with the BAM! Be A Man website!
- Many organizations, such as churches and local chambers of commerce, offer free or low cost credit counseling and financial planning courses to members.
8. When You Get Paid, First Thing, Set Aside Some Of That Money For Your Savings.
You should be saving at the very least 10% of your income, if not more, each time you get paid.
Conclusion
Becoming aware of common budget busters and selecting a strategy to deal with them can help you to stick to your budget and increase your savings. Having savings is crucial to being able to live with less stress. Having savings will allow you to make the choices that you want to make instead of being forced into situations that are detrimental to your life.
If you have not started to save money, even just 20 or 30 dollars a month, now is the time to start.
If you do have a monthly savings vehicle save more. Increase the amount by 10 or 20 dollars a month for a few months and then increase it again.
BAM! Be A Man. Do The Right Thing. Take Care Of Yourself And Your Money
BAM! Be A Man. Do The Right Thing.
Be The DtRTy Guy!
