It’s the rising rent prices. It’s the cost of fuel. It’s your friends always inviting you to go out. There are plenty of reasons you find yourself unable to save for the rainy days. Sometimes, it feels like you are living the rainy days.
It feels like an answer to your prayers when you get that promotion. You might have gotten a raise, and now you think you can do better. But that’s not going to happen if you do the following:
Compete with Your Peers
We see it on social media every day: the posts about how your friends are doing. And they’re usually doing better than you. So, naturally, you have to buy new things to match the luxuries they have. You aim to one-up them, and if you can’t, you at least want to be on the same level. The reality is they might be like you, spending today and worrying in secret about their lack of savings. Rethink your purchases if you’re only buying them to show proof of how well you’re doing. Your peers might not see your bank account, but if you had saved your salary increase and put it to good use, you’ll have something to show for your hard work in the future. Forget about the travel selfies or the #fotd. When you’re finally able to get the house or car of your dreams, your peers will know you’ve made it.
Spend More Because You Earn More
When you only had two dollars to spare, you went for two-dollar coffees. But now that you’re earning more, your coffee order gets an upgrade too. You do this for all areas of your life and justify them as a reflection of your success. You need new shoes, and someone in your position should only be wearing Louboutins now. Your clothes? Gucci. Your self-care routine? A full day at the spa every Saturday. While it’s good to treat yourself and spend money on things you love, there are better ways to spend your hard-earned money. For example, you can make it a habit to have your clothes tailored, so they fit better regardless of brand. That spa experience? You can have it at home if you invest in a whirlpool bath instead of a spa appointment in Utah which, by the way, costs even more because of the gas your car consumes to get there.
Don’t Track Your Expenses
You earn more now; you can afford to lose a couple of cents, right? The problem with not tracking your expenses is that you don’t know how much you’re spending on the essentials and frivolous purchases. You think you’re responsible when it comes to money, but your savings account begs to differ. It’s hard to figure out where you’re losing money despite the bigger paycheck when you don’t know how your typical day’s expenses look like. It’s not hard to track your expenses, mainly if you use apps to do it, so get in the habit and uncover your weaknesses.
It’s not unusual to deny that you have a money problem. After all, you’re only doing what everyone is doing. But when this is causing your savings to plummet, it’s time to look within and figure out the problem.