Common Ways People Try To Save Money That Isn’t Good For You (And What You Should Do Instead)

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Ask anybody in the modern-day if they’ve got problems with their finances, and the likely answer is that they most definitely do. We’ve all got our crosses to bear, whether it’s with regards to debt or we are trying to buy a house. When we look at the factors that result in so much debt, we have to take into account the stress is associated. Some people feel that they’ve got to cut so many corners in order to live a comfortable lifestyle, even though on the surface they are earning more than enough, but there are so many people that have no choice but to cut corners in order to sustain their current lifestyle which can have a major bearing on their health and happiness. What are some of these components that seemingly well off people need to undertake in order to keep their finances afloat? And if you are struggling, what can you do to ensure that you make life easier for yourself in a financial sense but also not feel the burden of modern-day money stresses?

Cutting Back On Insurance 

Many people feel that insurance is one of those things that you’re paying out for, but you never end up using it. When you are considering just how much of a difference it could make to your lifestyle, cutting back on a monthly payment for your insurance policy, whether it’s car insurance, life insurance, or even insurance for your worldly possessions it’s hardly a surprise that when people are struggling that this is one of the first things to go. But we’ve got to think about the overall repercussions of not having insurance. For example, driving without insurance is such a cardinal sin that you could pay the price, literally and figuratively, in a legal sense. Cutting back on insurance when you are trying to save money in terms of your home or are attempting to fix up your home as an investment could mean that you will suffer a burglary or an accident if it is not covered by insurance. The fact of the matter is that insurance is so important that it’s got to be one of the key expenditures in your life. It’s there should the worst-case scenario happen.

Going Without Food 

There are so many tales of families that are going without specific provisions so their children can go to school with full bellies. As sad as this is, it’s more widespread than you think. Many families feel that they’ve got to go without a meal and when we look at places like the UK who are suffering unprecedented amounts of austerity, the increase in food banks, where people go and get provisions that have been donated by other people, is on the up. But going without food means that we are putting our health at risk. If you feel that in order to make ends meet that you’ve got to go without food, partly this can be to do with the type of food you are used to but you can also figure out ways to make food go further. Something like batch cooking is a very good way to expand your provisions. Nobody should go without food. But the reality that many families are considering this is a stark truth that is hitting home to many people.

Not Earning Enough Money

Everybody feels that they are getting enough money in order to sustain a certain lifestyle. We all feel we could do with a pay rise, and the fact of the matter is that people are looking at side hustles or an extra job to acquire additional income means that we’ve got to be smarter with the money we have. When we’re trying to save for a house, one of the most challenging components is minimizing your debt. When we don’t earn enough money, we lean on credit cards too much in order to pay bills or just to get by from month to month. When we don’t earn enough to sustain our lifestyle, this is when we have to make alterations to our daily lives. There are so many resources out there that can help with this, such as the budget calculators you see online. Taking a long hard look at your incomings versus outgoings can be a complicated conversation to have, especially when you have dependents. But as we begin to unravel our lifestyle and see what we’re doing is harming us in the short-term, then we can start to make changes for the better.

The Temptation To “Keep Up With The Joneses”

We live in an age where we can get material goods on tap. We can order something online and within 12 hours, it’s in our hands. And when we live in such an immediate culture, the temptation to order things so quickly means that we end up paying the price. We’ve also got to think about the social implications of having things. While there is a leaning towards minimalism in some areas, when you live in in a neighborhood that looks affable, where everybody is driving a nice car, and appear to go on family trips all the time, this can send a message to us that we’ve got to keep up with them in one way or another. But this pressure results in unprecedented stress. When we are in a stressful environment where we feel that to maintain some sort of pretense we’ve got no choice but to spend money, we lose track of our abilities to control our incomings and outgoings. The first port of call can be to inquire about a pay rise or to earn more money, but when we increase our earnings to match our lifestyle, our expenditure begins to expand further out. This is a sign that we are never content with where we are. It’s a psychological problem rather than a physical one. By looking at your mindset and beginning to understand where your problems lie, you can start to make peace with the fact that money isn’t everything. Yes, it’s a cliche, but we’ve got to remember that when we only earn so much, we’ve got to stay within our means. Because we can feel that pressure with friends that have earned more over the years, trying to catch up stops us from focusing on the things that matter.

Dealing With Financial Stress

Because we live in an age of rising costs, we start to feel that we have no option but to fight against the rising tide. We only earn so much so we “put up with it,” and we think that because there’s only have one life to live that we should make the most of it. Some people say that it’s “only money” and this is a dangerous mindset, but we can all understand where they come from. It’s about not letting financial stress envelop your entire life; it’s about being happier despite the circumstances. We all suffer from some sort of financial burden. Whether we’re trying to save up for something, or we can feel that we don’t earn enough day-to-day. But when we start to address our earning potential in comparison to our learning power, we can begin to make better habits, not just in terms of spending money but in terms of how we live our lives. Some people can’t bear the idea of looking for bargains because it feels like a step down, but we’ve got to remember the important thing that learning a habit takes some time. It can take at least 8 weeks to set in. When you’re used to a particular way of life and having to cut back on your outgoings and it feels like you are depriving yourself, it’s important to remember that whether it’s trying to save money or keep up with the Joneses that a lot of people are feeling the pinch. They just feel it differently to you. They may have a fantastic house, but they may still buy their furniture off Facebook Marketplace. And this is something we’ve got to think about. Material goods aren’t the be-all and end-all, and for those people that are trying to acquire material goods in order to feel better or live a better life are feeling the pinch in a similar way.

The stress of living in the modern-day means that we feel we’ve got to treat ourselves. But it becomes a very vicious cycle when you begin to treat yourself to something because it’s a Friday and then you feel so stressed by Monday morning that a little treat would benefit you again. Not that we’re saying you need to deprive yourself but you’ve got to understand the repercussions of your actions. It’s something that we all suffer from now. Learning to save money can seem impossible when there are mounting bills. The cost of living is increasing, but the pay is not matching it. So tightening our belts becomes the default option. But this means that we get stressed and we lash out at the people we love. Perhaps in order to live a happier life, we’ve got to understand that when we reduce our material goods we don’t necessarily feel worse off. Whether you have got children that have peer pressure in order to have the latest toy or you live in a neighborhood where you appear to be the poorest person, the fact of the matter is that you’ve got your own life to lead rather than comparing yourself to others. And perhaps this is the key to feeling freedom in an emotional and financial sense.

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