You’ve started saving. That’s great, whether you have something in particular or just saving for the future. However, there are times that your savings goals will never be achieved. It doesn’t matter how long you save for, you won’t get to that specific amount. Here are six reasons you’re struggling to achieve your savings goals.
You’re Not Saving Enough
You may have a specific time frame to achieve your goal. This is good because it is part of making your goal smart. However, if you’re not saving enough, you will not reach that goal. You need to consider the amount you want to save and the time you want to do it in. That will give you the minimum you need to save each month.
Budgeting is a really part of personal finance. You’ll know how much you need from your monthly paycheck to spend on household items. You’ll have an idea of the amount you can realistically save for each month, to determine whether you can meet your savings goals.
You Keep Dipping Into Your Savings
Your financial situation is so poor that you need to keep dipping into your savings. There’s really no point in saving the amount that you do. It’s better to rethink your strategy, and determine whether you really do need to dip into your savings.
The only time you need to is in an emergency, such as when you can’t afford a bill or when something out of the ordinary (like your washing machine breaking) happens. Have a separate savings account just for emergencies. This will help to limit the hit your long-term savings account will take.
Your Interest Rate Is Too Low
It’s better to look for a savings account with a high interest rate. Think about the extra amounts that you will gain over the course of a year or two. The higher the rate, the less pressure there is on you to save a set amount each month.
It’s important to keep shopping around for the best savings accounts, and they will not necessarily be with your own bank. This will be an ongoing thing. My bank recently sent me a letter to say it is going to reduce my savings rate again. There is an account willing to offer 4% more than my current bank, so I’ll be jumping ship to them.
You Have Too Many Outgoings
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You may be in a position when your outgoings are more than your income. If not, you may be at a point where you’re just breaking even. If this is the case, you don’t have the funds to put in the savings account. It’s worth looking into your outgoings and see if there is anything that you can take out or reduce.
Be reasonable and make sacrifices where possible. We recently cut back on our TV package because we weren’t watching the channels. If I had my own way, we wouldn’t have had the TV package at all, but cutting down was the sacrifice my husband was willing to take.
You Give Into Whims
When you start giving into your whims, more money will come out of your savings. If you’re saving for something in particular, you will find it much harder to reach that goal if you keep spending throughout the month.
It’s time to start denying yourself those treats. Put your focus into saving money instead of the luxuries right now.
But you do still need your treats, right? Well, yes but not all the time. Once a fortnight or once a month agree to use some of your savings towards a treat. It could be a trip out somewhere or on a gift. Set a strict limit for the amount you’ll spend on your treat, and remember the bigger goal that you have for your savings.
Your Savings Goals Are Too Big
Realistic savings goals are essential. It’s time to consider whether your savings goals are too big, or you’re not giving yourself enough time. This is when you’re sabotaging yourself, but you may not be doing it intentionally.
Start taking the pressure off yourself, and consider whether your goals really are that smart. There is nothing wrong with changing them if you know that the original goals were never achievable in the first place.
It’s best to look at your goals regularly and adjust them. Give yourself a month or two to work towards your goals and then look back over your progress. Are you way behind on meeting your targets? It’s a sign that you don’t have a very smart goal. This links into the first point about not saving enough to meet your goals! They may be too big compared to the amount you spend each month.
Take your time to work on some sensible and realistic savings goals. You’ll then need to consider sacrifices and compromises you need to make to be able to reach those goals. Don’t put yourself behind before you even start!
I'm a full time freelance writer, Weight Watchers leader and mummy. I love writing about all things entertainment and lifestyle. Making residual income has become a passion; one that I'm working really hard at making a great reality.