Saving money is a really hard thing to do for a lot of people and not because they don’t have enough money. Here’s why:
1 You don’t have purpose to saving money
Saving “for the future” isn’t a clear enough reason for saving money because the future often feels vague, intangible, far-off and just nowhere near as pressing as all the things tugging on your wallet today. On the other hand, money spent today can be enjoyed, or at least benefitted from, today. Since we’re largely inhabiting the present, today’s heating, feeding, housing and clothing needs and wants take precedence over the future and, so, we put saving off.
The solution
Investing and pension accounts become a thing you get the buying buzz off today. It’s satisfying to put money into designated accounts where it’s going to grow – like buying free credits from the money gods who’ll add money into your account little by little.
2 You don’t have a system for saving money
Saving whatever is left over in your account just doesn’t work. You either spend it before you get to the end of the month, which makes you feel even more sure you don’t have money to spare. Or you roll it over into next month “just in case” something comes up.
The solution
Automate a payment out into an investing or pension account right after you get paid, or when you pay your rent or whatever part of the month you take care of fixed outgoings.
You won’t miss it; you’ll adapt.
In 2021, I started off putting 166€ a month into a pension account. Then some laws changed and I reduced it to 125€ a month. A couple of months ago, I upped it to 275€ a month due to some more legal changes.
Those 3 amounts all feel exactly the same to me because I have just adjusted my spending to accommodate it. The money simply isn’t there to spend so I don’t spend it. It’s true that I’m thinking more carefully about expenditure than I was, but it works because I’ve made it impossible for it not to. In 2024, I’m going to increase it again to 300€.
3 Childhood blocks against saving money
Whether you find saving easy, difficult or a compulsion (that’s me!) is all to do with your childhood experiences of money.
And because psychology is interesting that way, the same conditions + different person manifest in totally different ways.
People who grew up where money was tight could now live at either end of a long spectrum. One becomes a hoarder (no money will ever feel safe or enough); the other a spender (money has to be spent otherwise it will leave); yet another might become a person who gives it away (I’m not used to money and don’t know what to do with it). We recreate the familiar even if it’s not what we actively want our lives to be like. People who grow up rich will have their own reactions to that.
The solution
That’s a harder one than the other two reasons. You’re going to want to start by digging into what these patterns are and then you can work out where they come from and how they’re showing up. Start the exploration with this powerful workshop. (Warning: this one is like therapy and it goes DEEP!)
If you want to start saving but need some structure, here are two fun year-long saving challenges. Click the images to find out more.
