{"id":182182,"date":"2023-10-03T19:39:15","date_gmt":"2023-10-03T19:39:15","guid":{"rendered":"https:\/\/precoinnews.com\/?p=182182"},"modified":"2023-10-03T19:39:15","modified_gmt":"2023-10-03T19:39:15","slug":"apps-trackers-buckets-ive-tried-it-all-why-am-i-still-bad-at-saving-money","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/economy\/apps-trackers-buckets-ive-tried-it-all-why-am-i-still-bad-at-saving-money\/","title":{"rendered":"Apps, trackers, buckets: I\u2019ve tried it all, why am I still bad at saving money?"},"content":{"rendered":"

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Why do I struggle to save money? I have a good income, but I never have much to show for it. I have tried budgeting spreadsheets and apps. I\u2019ll be disciplined with it for a week or few, but it never sticks. I have tried having different buckets and transferring money to different accounts, but I always end up spending it. It\u2019s a non-stop dance of one-step-forward, one-step-back.<\/strong><\/p>\n

Firstly, you\u2019re not alone. This is a far more common problem than many would think.<\/p>\n

Unfortunately, the dominant narrative about saving money can be overly simplistic. On paper, it seems so simple. Just don\u2019t spend so much. Put money aside and don\u2019t touch it.<\/p>\n

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When it comes to a road map for how to save, common advice centres on practical tools like savings apps or \u2018buckets\u2019. But the crux of the problem goes far deeper.<\/span>Credit: <\/span>Simon Letch<\/cite><\/p>\n

When it comes to a road map for how to save, common advice centres on practical tools. Try this budgeting app, or this spreadsheet, or that bucket system for bank accounts.<\/p>\n

The problem with these suggestions is that it\u2019s like telling someone who is trying to lose weight to \u201cjust eat less and go to the gym\u201d. In theory, the solution seems obvious and simple.<\/p>\n

But the real crux of the problem is that someone who is currently overeating has a mindset and lifestyle which supports that outcome. Giving them a treadmill won\u2019t help them overcome their anxiety around exercise, or their emotional eating habits.<\/p>\n

If you already earn a decent income and you\u2019ve tried the practical tools unsuccessfully, take a different approach.<\/p>\n

It\u2019s a similar case with saving money. In my experience, people who struggle to save money have a mindset and lifestyle that doesn\u2019t support saving money long-term.<\/p>\n

People are usually driven to act consistently with their beliefs, so if your behaviour isn\u2019t producing outcomes you like, ask yourself \u2013 what beliefs are driving my behaviour?<\/p>\n

Here are some of the common unhelpful beliefs I frequently see in people who have a hard time saving money, and also the helpful beliefs that enables successful savers to save:<\/p>\n

1. \u201cMoney is for spending\u201d. <\/b>If you hold this belief about money, you\u2019ll find a way to act in accordance with that belief.<\/p>\n

Maybe when you see your savings building up, you start seeking opportunities to spend it. You might even mentally spend it, before you\u2019ve saved it. Eventually, the desire to spend becomes hard to resist.<\/p>\n

In contrast, successful savers don\u2019t just see the purpose of money as being for spending. They also see money as being for security, emergencies, peace of mind, and future goals.<\/p>\n

So, when a saver sees money in their bank account, they aren\u2019t automatically thinking about what they can spend it on. In fact, they often view that money as locked up and unavailable for short-term spending. This pushes them to figure out how to manage their expenses without touching their savings.<\/p>\n

2. \u201cHaving too much money is greedy, selfish or wrong.\u201d <\/b>I remember working with one woman who struggled to save. Whenever she got some, she found a way to spend it, and she just couldn\u2019t understand why.<\/p>\n

After unpacking her psychological relationship with money, she remembered her mum had always talked about money being dirty and corrupting. She realised that she\u2019d been trying to \u201cget rid of\u201d money. She felt uncomfortable with the idea of having a lot.<\/p>\n

Think about how you perceive having a lot of money. If you believe having money is somehow selfish, corrupting, greedy or wrong, that is in direct conflict with your desire to have more of it.<\/p>\n

It also tells your brain that having a lot of money doesn\u2019t feel safe. Why would your brain support you in taking confident, consistent action towards something that feels fundamentally unsafe?<\/p>\n

In contrast, successful savers don\u2019t view having money as bad. They view money as an important resource. They view having money is important for their wellbeing, security and quality of life, and therefore don\u2019t have internal conflict about having more of it.<\/p>\n

3. \u201cMore money, more problems.\u201d <\/b>Do you worry about paying more in taxes if you earn more? Or maybe you fear social isolation if you suddenly start having more money than your friends and family?<\/p>\n

Sometimes, people subconsciously fear how life might change when they have more money. More administrative complexity, change in social standing, more responsibility, less relatability to others who are still financially struggling \u2026 all of this sounds like hard work.<\/p>\n

When you stack it up, you might find you believe having more money, or the process of saving money, is harder and more painful than your current situation.<\/p>\n

In contrast, successful savers are willing to do the hard work of saving and managing money because they view it as less<\/i> hard and painful, compared to living a life of financial stress.<\/p>\n

If you already earn a decent income, and you\u2019ve tried the practical tools unsuccessfully, take a different approach. Spend some time reflecting on what beliefs, assumptions and attitudes you have about spending and saving money, and how you can change them to support your goals.<\/p>\n

Paridhi Jain is the founder of SkilledSmart, which helps adults learn to manage, save and invest their money through financial education courses and classes.<\/strong><\/p>\n