Why is saving money so hard?

[rednas]

I have never really had an issue saving money. I just have not really increased my spending as my income has increased like almost all people do.

 

[WilliamM2]

Sounds like you've been lucky with your health. $9000 sounds just about in line for a couple of broken jaws WITH insurance. A couple of years ago, my daughter fell at day care and cut her lip open. Because it was on her face and she was so young, they recommend that a plastic surgeon fix it. By the time we were done, our out of pocket for stitches on her lip was just a little more than $3000.

Hardly. Spent close to $10K for a double ACDF in 2010 with insurance. But there are limits on max out of pocket now...like I said, just curious.

 

[HeXen]

I think it's super easy. You can take a % out of your pay check and put it directly into a savings account or xmas fund, CD..etc. Why is that hard to tell the bank lady? Have some self discipline, you're an adult now. ( I am making the assumption you are anyway).

Finances is common sense. Money that comes in MUST be higher than what goes out and leaves you a buffer zone. This ensures you can obtain good credit by paying everything on time. Good credit when used wisely can help you with major expenses such as car repairs, house repairs, insurance gaps..etc. A buffer zone fills a gap for small unexpected expenses...like a sudden rise in your water bill or whatever. Then recalculate your finances again to readjust.
Use small, manageable loans from your bank as "fun/blow" money and paying it off helps your credit too. After it's paid off then you can do it again and again and again. You just have to know what that amount can be and be able to not splurge during your pay back period in between.

Always...always know how much you can afford to spend on luxuries for every week/month and if a Neweegg/Steam sale arises, don't buy if it's not currently going to fit in. Just keep a savings account specifically for such sales.

The problem for some is that they are too lazy to figure those things up and lack the self discipline to stay within any kind of budget. They only think of the present time and no sense for their future. Now the caveat is often your health. Even with insurance a sudden serious health issue can bankrupt a guy and there are no shortage of places to get specific situation advice for but in general saving can be easy once you get into the habits.

Here's a place to start: http://www.americasaves.org/for-savers/make-a-plan-how-to-save-money/54-ways-to-save-money
http://www.nerdwallet.com/blog/banking/savings-101-cd-certificate-deposit/

 

[biostud]

It is not. (granted you need to have a job that pays more than minimum wage)

 

[Jumpem]

Have a certain percentage direct deposited to a savings account. Have the remainder direct deposited to a checking account.

 

[GagHalfrunt]

It's not that hard. Before buying something ask yourself do I need it or just want it. Buy needs and not wants.

That's a little too draconian for most people, if you go through life without satisfying your wants you're not going to have much fun. Better method is:

Figure out take-home income
Figure out the cost of needs like food, rent, car/transportation, etc

What's left over should be parceled out, some for savings and some for fun. If you have $100 left over at the end of the week after paying for needs, save $50 and blow $50 on wants. Just have a shred of discipline. Never buy wants that you can't afford and never blow discretionary income entirely on wants without saving a chunk of it.

 

[brianmanahan]

That's a little too draconian for most people, if you go through life without satisfying your wants you're not going to have much fun.

i'll take security over fun

 

[JackBurton]

i'll take security over fun

i'll take both.

 

[Mai72]

You can say that on your high horse, but a lot of families keep getting unexpected expenses and it prevents them from putting money away.

Hell, since November, my son has broken his jaw twice. $9000 down the tubes and an empty savings account. Similar thing happened to my coworker.

What about healthcare?

I know someone who got free healthcare because he makes next to squat. In fact, he gets free dental, mental, medical, prescriptions, etc... I have a feeling that if he were to have his jaw broken he would have been able to get it fixed without spending a dime.

 

[JMapleton]

You have to enjoy saving money to do it.

For some people, having money in the bank brings with it a sense of security. Without money, they feel vulnerable. You need to develop that feeling.

 

[JMapleton]

And if reading this thread is any indication, don't have kids. They will suck the money, time, and energy out of you and leave you a burnt out shell.

 

[Brovane]

Between being a homeowner and having kids it is hard to save. With two girls just last week my wife had to spend $160 on bras for my girls. I have learned bras are expensive especially when you have growing children. For the swim team this summer they are doing, each competition swim suit was around $60 a piece, not including caps, googles, swim bags etc. Last month spent over $300 on new glasses because both of them their prescriptions changed.

Easiest way to safe is have money taken out of paycheck before I ever see it. So 401k etc disappears and never see it. I also part of my paycheck put into savings so I also never see it. However it is hard with those un-expected expenses.

 

[Mai72]

I've once read that the rich pay themselves first before they pay other people. Of course, you need to have the income to do this. But, I'd think that most people are able to give themselves something before they pay their bills.

 

[Engineer]

It is not. (granted you need to have a job that pays more than minimum wage)

And there lies the problem for many of the 'new economy'. Giant sucking sound took may of the good paying jobs for those without a degree with it....and the degree jobs are next (assuming you can afford the darn degree in the first place).

 

[Engineer]

And if reading this thread is any indication, don't have kids. They will suck the money, time, and energy out of you and leave you a burnt out shell.

There are more pluses to having kids than just the money. While I was sarcastic in my response of 'kids' above, it's all about balance whether you have kids or not. I have two kids and have little issue saving money (even on a below household income vs the regular ATOT income). I tell my kids often that I will try to help them where I can but they can borrow their way through school or a new car but I can't borrow my way through retirement. I pay myself first....everything else is gravy.

 

[brianmanahan]

For some people, having money in the bank brings with it a sense of security. Without money, they feel vulnerable. You need to develop that feeling.

almost losing everything your family owns when you are a kid helps develop that feeling

 

[JMapleton]

There are more pluses to having kids than just the money. While I was sarcastic in my response of 'kids' above, it's all about balance whether you have kids or not. I have two kids and have little issue saving money (even on a below household income vs the regular ATOT income). I tell my kids often that I will try to help them where I can but they can borrow their way through school or a new car but I can't borrow my way through retirement. I pay myself first....everything else is gravy.

But you'd have way more money and time if you didn't have kids. Of course I don't expect a parent to admit they wish they didn't have kids. But I just don't understand why people choose to have them. I'm 31 years old and still just cannot see. There are so many things I want to do for myself, so many places to go. Last thing I want or need is to take care of someone else if I don't need to.

 

[Engineer]

almost losing everything your family owns when you are a kid helps develop that feeling

100% agree (and know) this feeling. People tend to learn from history and try not to repeat the bad parts.

 

[child of wonder]

Saving is difficult but can be done with some self control. We've been saving like mad the last 8 months as we prepare to move out of our house and into a new one but could do a much better job than we have.

It's too easy to spend and much harder to save.

 

[MongGrel]

Because it's never trickled down

The money the middle class used to save has been diverted.

 

[SketchMaster]

There are a ton of blogs out there that give good advice for how to save money. www.mymoneyblog.com and www.mrmoneymustache.com to name a couple.

I always encourage people to use www.Mint.com or the like to monitor their spending. It played a big role in getting my spending under control by letting me watch multiple bank accounts. It also helped me catch a stolen CC # before my bank even figured out, and clued me in on forgotten subscriptions I had setup years ago. Those $15-$30 bucks a month add up to quite a lot when you have 3-6 of them draining you each month.

After that I just learned to shop sales, block any adds from Amazon/newegg/thinkgeek that would make me "ooooo!" at something, and also picked 1-2-5-10 year goals.

It's not easy, but it's not impossible. My Girlfriend makes about $48K, but her saving habits are insane. She lives on her own but is able to max out her 401k and STILL have enough left over at the end of each month to put into savings. She bought a new Subaru Impreza with cash after totaling her last car due to ice.

 

[maddogchen]

i treat it like how i play role playing games, i hoard and save.

 

[MongGrel]

There are a ton of blogs out there that give good advice for how to save money. www.mymoneyblog.com and www.mrmoneymustache.com to name a couple.

I always encourage people to use Mint.com or the like to monitor their spending. It played a big role in getting my spending under control by letting me watch multiple bank accounts. It also helped me catch a stolen CC # before my bank even figured out, and clued me in on forgotten subscriptions I had setup years ago. Those $15-$30 bucks a month add up to quite a lot when you have 3-6 of them draining you each month.

After that I just learned to shop sales, block any adds from Amazon/newegg/thinkgeek that would make me "ooooo!" at something, and also picked 1-2-5-10 year goals.

It's not easy, but it's not impossible. My Girlfriend makes about $48K, but her saving habits are insane. She lives on her own but is able to max out her 401k and STILL have enough left over at the end of each month to put into savings. She bought a new Subaru Impreza with cash after totaling her last car due to ice.

NM you had that answered.

 

[Dirigible]

Spending money is easy and fun, but damn, people spend it on the stupidest crap. Drinking

I stopped reading there, because it became clear you are not to be trusted.

 

[Imp]

For the people I knew with tons of disposable income (i.e. I knew they had no kids and bragged about blowing money on useless shit), discipline, keeping up with the Jones' and caring too much what strangers think of them, and "if you don't use it, you're not living" life philosophy.

And then others just don't have money because their job doesn't pay enough and it's really expensive where they live, probably also where family and their career keeps them.