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4 Reasons You Are Bad at Saving

4 Reasons You Are Bad at Saving

To address the concern of your bad saving habits, you need to figure out first if you’re really bad at saving, or if other issues come into play. If you answer yes to the following questions, then there’s a high possibility that you are:

  • Have you ever experienced the feeling of guilt when you spend money for something that isn’t considered a necessity?
  • Does the statement of account of your savings or checking account include frequent withdrawals and debits?
  • Do you think that your wallet is a perpetual black hole that magically absorbs your money and leaves you with nothing behind?

If you nodded your head and said yes to all of these, then you might be bad at saving.

As the saying goes, though: “You’re not alone!” Plenty of people are admittedly lax with their finances. Most aren’t that concerned about money management yet. No one wants to hear about investments or the stock market. Everyone wants to work hard and party hard, not knowing that saving hard and investing hard are actually the keys to attaining financial freedom.

As a result, you end up broke, weak-bodied and bitter when you get older. You simply couldn’t set aside money to be invested for your retirement fund because you weren’t able to adopt the habit of saving regularly when you were younger.

Why, exactly, are you mishandling your hard-earned money? Here are four reasons to help shed light on this issue:

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1. You’re the victim of lifestyle inflation.

As you grow older, gain more experiences, and get more chances to work at your job-related skills, you’re also more likely to earn more income. But, instead of saving more because of the increased inflow of cash, you tend to spend more. Thus, you think of yourself as being bad at saving.

Real Talk:

Most of us think that an increase in cash automatically means an increase in expenses. While this may be true in some cases where we get more responsibilities, all that extra doesn’t need to be spent recklessly.

If you got a sudden tax refund, a bonus, or a raise, don’t spend everything. Instead, save at least 20% and then allow yourself to spend the rest as you’d like.

2. You’re attracted to that sense that money = power.

Soap operas, fantasy movies, and even real-life celebrities and politicians perpetuate the notion that having money means having the power to control the situations and the people around you.

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You know this isn’t necessarily true. But, whenever people admire your branded clothes and whenever people treat you nicely as you flaunt your luxury bag, you can’t help but believe the idea that money is power.

Real Talk:

Money does seem to demand respect from others. But think of it this way: would you want to be admired because of your money, or would you rather be respected because of who you are as a person?

3. You procrastinate.

Why should you save up an emergency fund? You haven’t experienced an emergency yet.

Why should you invest for your retirement? You’re not going to retire yet.

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Why should you get life insurance? You’re still alive.

Real Talk:

You’re bad at saving money because you love to wait and wait and wait. Just because something hasn’t happened, doesn’t mean that it won’t happen tomorrow. You can either start now while everything’s still manageable, or you can start tomorrow when everything’s already a mess: it’s your call.

4. You think of saving as a chore; you don’t consider it a priority.

Saving is usually associated with being cheap or miserable, so most people don’t appreciate its importance. Instead, they choose to “live in the now” and prioritize automatic gratification.

Real Talk:

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Every life goal has a price tag associated with it. Do you have dreams that you’d like to achieve in the future? Home ownership, college, buying a car, going on vacation–all of these have a corresponding financial value!

Yes, it makes sense to spend for now. But it also makes greater sense to spend in the future.

Now, how can you find money to spend in the future?

You save and subsequently invest for it.

Yes, you can move from being bad at saving money, to being awesome at saving money. All it takes is a small start, and a lot of commitment.

Featured photo credit: cohdra100_1640.JPG/cohdra via cdn.morguefile.com

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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