You don’t need us to remind you that saving money should be a priority in your life.
Your mum has probably told you, you have probably seen that guy on the TV talking about the best savings accounts, and you have probably made a mental note to start saving yourself.
And that is all well and good. But the big question is this:
What if you are struggling to save?
You know you should, but if you don’t have the financial means to do so, then it doesn’t matter what your mum or Martin Lewis says. If you can’t make ends meet on a daily basis, then how can you save? It’s a tough one, but to improve your financial position, you may need to make some changes in your life. You see, the following could be the reasons why you are struggling to save money.
#1: You are living above your means
The cost of living is high, especially if you’re living in a city like London. There’s your rent or mortgage to pay. You might be paying off your student loan still. Utility bills are always on the rise. And there are sundry other expenses, each one of which could be draining your finances.
Tip: The first thing you need to do is budget. Work out your income and expenditure and then cut out anything that isn’t necessary to your life, such as those lattes you treat yourself to on a lunchtime. Then look at those necessary expenses; those blasted bills and diabolical debt payments, and find ways to reduce them, using a price comparison service and/or a debt charity to help you. And finally, consider where you are living. It doesn’t matter if you have bought your own house or if you are renting; if you are living somewhere you can’t afford, even after taking steps to cut costs, you might have to consider downsizing. Use this guide to selling your house by Advisory if you own somewhere, and then whether you rent or buy, move into a place that is more accommodating to your budget.
#2: You are not earning enough money
If you have done all you can to get your finances under control, but are still not earning enough money to live on, then you need to consider your income. You don’t necessarily need to change your job, but you do need to find ways to boost your income.
Tip: Can you take on a second job? Working in a bar at the weekend or doing the occasional shift driving for a takeaway are just two of the ways you can earn and subsequently save more. Or how about taking on a side-hustle? You will need to declare your additional income to the HMRC, but there are all kinds of small jobs you can do on a self-employed basis, from dog-sitting to selling your crafts online. You might also consider the job you are currently in. If it really isn’t paying enough, you might want to ask for a raise or a promotion, or you might want to look for another job that pays more. Whatever the case, you need to make the effort. By taking positive steps to improve your income, you will put yourself in a position where you might have the opportunity to save.
What do you think? Have we hit the proverbial nail on the head when it comes to why you are struggling to save? If so, make the changes necessary to improve your situation. It takes time and effort to make these changes we know, but when you finally are able to save, you will be in a much happier and secure position than you may be in at the moment. But don’t just take our word for it; your mum and Martin Lewis are guaranteed to tell you the same thing!