Are You Saving Enough Money? Here are 5 Good Indicators that You’re Not
Let’s be honest. Your savings account isn’t the most exciting place to channel your hard earned money. But having money saved up can be a tremendous relief when you need to make a big purchase or cover an unexpected expense. Most importantly, when you retire one day and are no longer able to work, you want to know that you saved enough money to give you the lifestyle you want.
So take a look at your bank statement. Are you really saving enough money? Here are five sure indicators that you might need to rethink your habits when it comes to saving and spending.
1.You Only Save When You Feel Like It
In other words, you don’t have any savings goals. It’s near impossible to consistently save when you don’t have a plan to do so. If you don’t make saving a priority, you’re likely to spend any left-over income on something that you really could do without. Consider thinking about what you’d like to achieve with your savings. Next, decide how much you could commit to saving on a regular basis.
2.You Barely Make It to the End of the Month
If your salary can’t last you the whole month, then saving is not even on the radar. Living paycheck-to-paycheck can be a stressful experience. If this describes you, it’s time to zero in on the reason why. Try tracking your spending and looking for ways to reduce it. You can also brainstorm options to make more income. You could pick up some extra hours at work, ask your boss for a raise, or even start your own side gig.
3.You’ve Lost Track of Your Spending
It might not suit your style to jot down each and every amount you spend. That’s understandable. However, if you have no idea how much you’re spending and what’s taking up most of your paycheck, it might be time to take a step back. Saving is difficult to do when you’re dealing with unclassified expenses. Take some time to figure out where most of your money is going and whether you have any options to reduce some of those expenses.
4.You Always Carry Your Credit Balance Over
If you can’t pay up your credit card balance in full, this is a good indicator you’re falling into debt. It’s fair to say you’re not saving but actually spending more than you can afford. If you find that having a credit card is tripping you up in this way, maybe it’s time you put it away for some time and work on paying up it up in full.
5.You Have No Money for Emergencies
Emergencies are never planned. You can try your best to avoid such situations, but once in a while, you might have to fork out some money you never planned to. If you don’t have an emergency fund, you’re not saving enough. Before you save up for a big purchase or even get your debt down to zero, you probably need to put some emergency money away just in case.