Some people have a good financial standing by virtue of being born into a wealthy family. However, there are not so many such people compared to those who attained good financial standing by making the right decisions.

    In essence, almost anyone is capable of coming out of financial hardship and attaining a good financial standing by doing the right things. One of the right things would be prioritizing saving instead of unnecessary purchases. For more information on other things to help attain a good financial standing, you can visit:

    As important as it is, the subject of saving can be quite tricky. It is to the point that some people who understand its importance fail to save. Ignorance of helpful tips or the unwillingness to put these tips into practice are some of the reasons for this.

    This article intends to take care of (especially) the first part of this problem. This is by sharing tested and trusted tips to help you save money. But first, let us delve into why people find it difficult to save money.

    Reasons Why People Find it Difficult to Save Money

    Lots of people face challenges when it comes to saving. Some people do well to start but have consistency issues along the line. By and large, some of the reasons why some people cannot or find it difficult to save include the following:

    Disorganized Financial Lifestyle

    This is usually characterized by not spending on a budget. People who do this end up buying more than they are supposed to. This is because there is no check to restrict their spending power.

    A budget serves this purpose. It helps you identify that you are getting close to a financial cliff and need to apply caution in terms of spending.

    Financial Indiscipline

    There is such a thing as financial maturity. People who are mature in this regard understand the huge difference between spending on wants and needs. For the record, your “wants” are not the same as your “needs”.

    Your” needs” are necessary while your “wants” have some measure of luxury. As a result, maturity in this sense does not stop you from spending on your needs but puts you in check when it comes to your wants.

    Financially undisciplined people are either unaware or fail to live by this standard. This is usually characterized by making purchases without thinking about the financial implications of making such purchases.


    It takes a lot of discipline to save as mentioned early on. Many who are capable of saving lack the discipline to do so. A lot of such individuals are fond of saying that they would do so later on and the cycle continues. Some even start and end up spending what they have saved up prematurely.

    Financial Dependents

    People who are responsible for other people have more challenges saving. For example, a man with three children and a wife who does no active job will find it more difficult to save than a man with a child and a wife who earns almost as much as he does.


    Some individuals service debts with funds that could have been channeled towards saving and even more. This is why the decision to take out credit lines should be seriously thought of before taking out loans.

    Inadequate Income

    Having inadequate funds is a reason for this challenge. Lots of people who fail to spare penger (which is the Norwegian term for “save money) make this excuse. Some people who make this excuse are being very frank rather than being financially undisciplined.

    For such people, the emphasis should be solely on increasing their earning power. This is rather than trying to save.

    On the other hand, this excuse holds no water for certain people. This is because they are merely being undisciplined as pointed out in the point above.

    Peer Pressure

    Why do some people make certain purchases that they are not supposed to make?

    Of course, the urge to enjoy what luxury has to offer is a common reason. However, there are other reasons including peer pressure. Some people buy things simply because they want or feel that they need to measure up to certain standards, which negatively impacts their ability to set money aside.

    Chronic Short-Term Perception

    What if you can luxuriously live within your means if you spend all that you earned? If yes, should you still save money?

    The answer would be a resounding YES! The reason is that you do not just save for now and even the immediate future. You save for the long term.

    To further answer this question, you need to save rather than spend all that you earn because your direct earning capacity will likely diminish as you approach certain ages. This is especially true if your profession is along certain career lines.

    For example, a professional electrician may lack the ability to perform certain tasks when he gets to a certain age range. This is why there are saving and retirement schemes to ensure that people have something to fall back on during such times.

    Some people fail to save money using these schemes or any other. Sometimes, it is not about the lack of funds but a lack of financial foresight.

    Unforeseen Circumstances

    There are situations in which a person’s inability to save is not the person’s fault. People dealing with unforeseen circumstances that negatively impact their finances fall into this category. This could be severe health issues, unwarranted job loss, natural disasters, and a host of other reasons.

    While a few of these challenges are no fault of the person, a lot of them suggest that the person needs to start making the right decisions. This calls for well-grounded financial literacy and willingness to make the right decisions.

    People need to have this stance regardless of how inconveniencing it may seem as sacrifices need to be made. You can read this article for more information on financial literacy.

    Tips on How to Save Money Effectively

    It was important to start by discussing the challenges that impede people’s ability to save. This is because knowledge of these challenges is the first step in overcoming them. In light of these challenges discussed above and more, discussed below are some helpful tips for effectively saving money:

    Spend on a Budget

    Your expenditure has to be well-guided. In essence, you should not just spend because you feel like it. Your purchases have to be based on your needs and not your wants. A budget is crucial for this purpose. So, make sure you have a realistic one that helps you save.

    Start Now

    Do you the best time to save money? More often than not, the answer is now!

    For the record, there is a huge difference between the best time to save money and the most convenient time to do so. Many people save based on convenience. This is rather than being driven by the need to save even when it is not convenient.

    Be Careful of Financial Commitments

    A financial increase should not always translate to an increase in financial dependents. It is best that you gather momentum before you start taking up certain responsibilities.

    For example, a fresh graduate who has recently secured a well-paying job does not have to start thinking about marriage and child-bearing immediately. This is because while these things are good in their own right, they increase the amount of financial dependents and reduce your saving capability. By and large, people need to think things through before making financial commitments.


    The debt problem is not just a leading cause of difficulties in saving money. Beyond this, it is a leading cause of financial hardship at large. As a result, the decision to take out a loan should not be made in haste.

    It is crucial that prospective borrowers also think about the possibility of repaying the loan as well. This will enable them to avoid certain loans and secure some.

    Effective debt management is also important for people who service multiple loans. For example, certain loans have to be prioritized over others. This is because of their interest rate and other terms and conditions that apply.

    Inadequate Income

    Your ability to save is greatly tied to your earning power. In essence, you should not only focus on saving from what you earn but increasing your earning capability as well.

    This is especially important for people who earn just too little to even consider saving. One solid piece of advice in this regard is to make moves to earn from various sources.

    Peer Pressure

    Mature people know how to maintain their stance even in the face of peer pressure. So, you do not have to buy anything to impress anyone. In essence, you need to live within your means as this will enable you to save.

    Chronic Short-Term Perception

    Imagine that you stopped earning as much as you did now. You should ask yourself how you would be able to still live as comfortably as possible.

    If you are being frank with yourself, the answer to this question will prompt the need to save and do some other things. In other words, you should think long-term as this motivates you to save money.


    Saving is a necessary financial practice for people who want financial stability. Its importance is the reason why some challenges that make it difficult to save have been exposed and helpful tips for overcoming them are suggested here. These tips should be taken seriously going forward.

    However, it takes more than saving to achieve financial stability. Proper investment is equally important. So, legitimate and profitable investment solutions should be explored.