Why is It Difficult to Save More Money Per Month?
by Sydney Hazelton on Nov 28, 2008 with 2 Comments
I have been trying to save more money over the past month, after discovering that I’m spending too much on a monthly basis. As a stay-at-home mom, I’m depending on my savings. I know that I have to cut down on my expenditure in order to be able to survive on my savings for a longer period of time. I have been spending $500 on average per month and I took up the challenge to spend $100 less this month. It is almost the end of the month and I was confronted with lots of challenges. In truth, I did not really manage to save $100 this month from my expenditure. Here’s why.
Why is it Difficult to Save More Money per Month?
1) Too High a Goal
I don’t think one hundred dollars is too high a goal to reduce expenditure. For me, I had some structures developed, but it was not foolproof. I need to develop more structures. I had set up a separate bank account, just for my expenses. I transferred $400 at the beginning of the month and that was all I intended to spend for the month. But this structure alone is insufficient, since there were other challenges.
2) Festive Season
When I started this challenge, it is in the midst of the festive season. It was difficult to cut down on expenses when you need them for festive food, clothes and transport (to visit relatives and friends). Since the festive season is over, I think I will do better next month.
3) Auto-Deduction from Banks
I had some bill payments automatically deducted from the banks. Since the money did not physically leave my very own hands, I forgot about them, until I updated my bank book and realise I’m falling short so quickly. When I looked through the list, I had auto-deduction for my phone bill and for service and conservancy. I must take that into account next month.
4) Credit Card Bills
When it comes to credit card bills, it’s always a surprise. You spend the month before. When the bill comes, you can’t even remember what you spent the previous month, and wonder why the bill was high. That was exactly what happened. I was surprised that I had a $200-bill from previous month’s spending. It was, again, due to the festivities. I have since kept my credit card at home, but still have to deal with the bill!
5) Annual Expenses
Annual expenses can come at a surprise for some people who do not anticipate them. These expenses include taxes, TV license, insurance and so on. These also need to be taken into account on a monthly basis and put them aside till it’s time to make the payment.
I do feel sad that my efforts this month did not result in the decrease in expenditure I had expected. Nevertheless, I don’t feel discouraged. In fact, there was a lot I learnt about managing my finances. The important thing is that I needed to streamline some processes and set up other structures, in order to ensure that my financial goals are met every month. I’m sure next month will yield better results.
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Published in: Personal Finance
Joanna Maharis | Nov 28, 2008 | Reply
This is a great article. I thoroughly enjoyed it. But if I may make a suggestion, instead of trying to save one hundered dollars a month, start smaller, like putting a thirty dollars a month, in that not only will you have an extra seventy dollars for the monthly expenses, but you will be making a nice nest egg as well. The savings will add up before you know it.
Take Care,
Joanna Maharis
Liane Schmidt | Dec 28, 2008 | Reply
I think the good thing to take out of your experience is that you are truly taking the time to figure out what went wrong so that you can change what you were doing and be successful in your efforts in the future*
You CAN and WILL reach every goal you reach for, keep persevering!
Blessings.
Sincerely,
-Liane Schmidt.