Why saving money feels impossible today – Even with a good salary |
For many of us growing up, we have seen how our parents manage the household finances, raise their children and yet had some savings each month. They did not have all the budgeting tools, or other types of income streams; however, saving money felt like second nature and was accomplished on a regular basis.
Presently, with significantly greater salaries and improved access to information about managing personal finances; saving money seems to be an elusive goal and a difficult task. You may find that your monthly salary appears and disappears quickly. Your expenses do not seem to be extravagant but at the end of the month you have little to no money available for savings. It creates a quiet anxiety—If I am having such difficulty saving today, then what will the future hold?
In reality, the world of money has evolved in some very subtle ways. The habits, expectations, and pressures regarding money are much different than those of your parents’ generation.
Our salaries today are much larger than what our parents earned; however, by the time the month is over, the money is gone.
In the past, with one income source, there were funds remaining after paying rent, buying food, sending children to school and still had money saved. Today, many people have two sources of income and feel challenged to save money.
Rent that used to take up a smaller portion of income is now taking approximately 30% of income. In addition, the cost of education, health care and daily living expenses continue to rise. What is left for savings is very limited.
Our parents never had monthly payments on smartphones or streaming services; nor would they have had food deliveries, paid for fitness apps, or constantly upgraded their phone. These things were an entertainment expense when........