Empty Coffers: Why You Can’t Save Money (4 Video Links)

In a perfect world, we would all have money tucked away for an emergency.

 

Of course, in reality, many of us lurch from one paycheck to another, crossing our fingers and praying that we have enough to cover what we owe. Sadly, this often leaves very little or nothing for savings.

 

But you can make changes.

 

If you’ve had a financial setback, this article can help.

 

Avoid Overspending

 

Avoid spending more than you can afford to.

This is easier said than done. However, a solid financial advisor can help if you have an issue. Monty Cerf has a great article about what questions to ask when looking to hire an advisor.

Spending involves a number of factors, including how much you earn, how much you pay out on monthly costs, and how much you spend as you go along.

 

However, the issue of overspending is usually caused by a lack of care with budget making and tracking. Something that allows you to believe you still have more money available for non-essential items than you actually do. Buying a new property can sometimes be a good idea, if the cost per month is going to be lower than what you are paying right now. Check out this site to find out more:

https://www.zoomproperty.com/en/buy/dubai/apartments-for-sale.

This article can help you improve your credit rating.

 

Change is hard

 

The reason that people don’t diet, don’t exercise, and don’t resolve bad personal relationships is that change is hard.

 

As a result, we don’t really, truly change and grow unless we’re in real pain. When we’re at that point, the pain of change is less severe than that pain of not changing.

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Discipline and time

 

Taking the time to learn more about the investments that you can put your money into, and how they can help you grow your savings at an exponential rate can help, too. Of course, you need to be aware of the risk that comes with investing, too. For instance, you can read more details about the Diversyfund lawsuit for an example of an investment option, the risks associated with it, and how you can avoid them. 

With discipline and time, I think most people can accumulate far more wealth than they think is possible. But growing wealth requires change- which is precisely why most people don’t make the effort. The changes I’m suggesting involve an old friend:

Delayed gratification

 

Some decisions are relatively small:

• Dropping a subscription music service and just listening to the free version (Pandora, for example).
• Making coffee at home two days a week, which means that you stop by Starbucks less often.
• Buying afew more generic products when you go to the grocery store and Target. (I’m not going generic on salad dressing, however).

 

Since these are smaller decisions, the amount of gratification you’re delaying is small. You don’t mind listening the commercials on Pandora (I certainly don’t- I just turned down the sound), and the coffee at home isn’t bad.

Other decisions are much bigger. StudySoup wrote this great article on the average amount of money a college student saves by having a roommate. The average savings over four years is over $15,000. Now, having a roommate is a big sacrifice, because you lose a fair amount of privacy. If privacy is really important to you, it’s a true delay of gratification (until you graduate, get a job and can afford to live alone).

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So, what do I get?

 

OK- so what do I get out of all this delayed gratification?

You build wealth- which can give you peace of mind.

 

Take an honest look at your spending habits, and adjust them accordingly.

 

Medical debts

 

Another major issue that prevents many people from saving money is that they have sustained medial debts to pay off.

 

Of course, this type of debt is different from all others in two ways. Firstly, it can run in the tens of thousands very easily, and secondly, it is usually necessary debts. That is you can go around with a broken arm or ruptured appendix in ordinary life.

 

Sadly, when you have significant medical debt, it often means that any money you do have is diverted straight to paying that off.  A situation that rarely leaves anything left for the savings pot. Extreme cases of medical debt can require you to seek further assistance; these Jefferson Capital Systems reviews can help you decide if this service can help you or not.

 

Although there is a possible way around such an issue. In fact, if the injury you sustained was not your own fault, you can claim compensation to cover your medical bills. Something that it can be surprisingly easy to do.

 

In fact, you only need to search for terms like ‘best personal injury attorney near me’, and lawyers that can handle the case for you will show up. Then you can leave the hard work to them, and if they succeed, you will no longer have such a strain on your finances. Something that should enable you to divert more to your savings coffers.

 

Overcharged for Financial Products

 

Make sure that you understand how you are charged by your bank, credit card companies, and for investments.

 

When it comes to paying back loans with interest, be sure to negotiate the lowest APR before you sign on the dotted line. Otherwise, you could end up paying for it out of your saving later on!

 

Take Action Now

 

With self-discipline and effort, you can improve your financial situation and fill those empty coffers. Invest the time to consult with a financial advisor. You can do it!

 

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) https://www.youtube.com/user/kenboydstl