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Reasons why you could be struggling to save

10 April 2018 By Alan Straton

Procrastinating to save can derail you from achieving your financial goals. People who have a healthy relationship with money understand that saving has very little to do with the size of your bank account, it all depends on your relationship with money.

Eunice Sibiya, Head of Consumer Education at FNB, says “Most people would like to save because they understand the financial benefits of having a safety net. However, saving usually takes the back seat simply because of the hesitation to make sacrifices. Understandably, consumers are hard pressed financially, but the essence of saving is starting small then building up from there.”

“If you are unable to save, perhaps it’s time to conduct an introspection of the relationship you have with money,” adds Sibiya.

Sibiya believes these could be some of the reason you are unable to save:

Poor attitude towards money

A poor relationship with money is characterised by aimless spending on things that will have no bearing on your long-term financial future. This may include taking debt to finance your lifestyle or overspending on things such as entertainment and clothes. It’s important to pay attention to how and what you spend your money on and ask yourself if you are deriving any value from such expenses.

Lack of financial goals

Without setting goals you are unlikely to get very far with your finances; this is simply because money leaves your account as quickly as it came in because of frivolous spending. When you have goals and are fully committed, you are able to plan your finances according to what you want to achieve.

Not asking for help

It’s advisable to consult a financial advisor to help you chart a way forward for your financial future, especially if you are struggling to prioritise. Not being able to save now does not mean the situation cannot be turned around. For example, if you are over indebted you may have to focus on clearing your debt before you start committing yourself to saving.

Being governed by YOLO

Yes, it’s true that you only live once (YOLO) but this also means you have a single lifetime to make your money work for you. It’s important to take the future into consideration when dealing with money, if you don’t save for both short and long-term goals you may end up financially constrained in future. Have financial future plans and avoid living in the moment.

Procrastination

Saving is a necessity, and this applies to everyone whether you have a lot of money or not, you still need to save. Postponing the decision to save will only put you in a compromising financial position. For example, if you have an emergency you may not be able to fund it from your own pocket because you have no money set aside for emergencies. This can lead you to debt in order to deal with the emergency.

“Being able to save does not necessarily mean putting large sums of money aside, it’s possible to start small and build up from there. South Africans are notorious for not saving, so to correct this perception, the only solution is change of attitude towards money,” concludes Sibiya.

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.
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Filed Under: Business Tagged With: Eunice Sibiya, fnb

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