Why is saving money so difficult?

As financial coach I have learned the stories of many people, and I see recurring patterns. Sometimes, for example, I am approached by clients who want to learn how to save money. Contrary to appearances, it is not the case that the more someone earns, the more they save. The amount of savings does not depend only on the amount of earnings. I know a lot of people who, despite the fact that their earnings have increased a lot over the years (and that’s after accounting for inflation), still haven’t put anything aside and live under constant financial stress.

Here are 4 reasons why saving money is difficult:

1. lack of saving habit

Those who have developed the habit of putting aside even small amounts on a regular basis gain doubly. Not only accumulate savings, but they also reinforce the habit of saving. This makes putting money aside even easier for them.

On the other hand, someone who has not been consistent in saving before needs to put in a lot of conscious effort at the beginning. Building habits requires self-control, or the ability to resist temptation and make an effort (Hofmann, Schmeichel and Baddeley, 2012). It is worth persevering in this mental battle against temptation. After a while, consistent saving will become a steady, automatic activity that no longer requires so much willpower.

2. psychological profile of financial identity

People who belong to the type described as “savers” usually find it easy to put money away as a child – even if their parents do not encourage them to do so. At the opposite end of the spectrum are the so-called “new” products. “Hedonists,” that is, people who love to spend money, and thus have great difficulty controlling spending and saving. Of course, no matter what your financial identity profile is, you can learn to save. Be *aware*, however, that if you have a lot of Hedonist traits in you and not a lot of Saving, you will *have* to put in more effort. I assure you that it is worth it!

3. problems with deferring gratification over time

Buying something cool for ourselves or loved ones gives us instant pleasure. In contrast, we can only feel the benefits of saving after a certain period of time, and even then it is usually not a single, specific moment of excitement – the opposite of spending money here and now. Those people who have a problem with self-control and maintaining consistent action in anticipation of a reward that will only appear after a while are also likely to have more trouble saving money. Developing the ability to maintain self-motivation for deferred rewards helps a lot in many aspects of life – including saving.

4. impact of advertising

Everyone dreams of many goods. With the exception of the very rich, the rest always have more needs and desires than financial capabilities. Advertisements are deliberately structured to tempt us to buy – including on credit. Top experts-including from neuromarketing – are working to make sure we keep buying. Slogans like “You’re worth it!”, “You deserve better,” “You can afford it!” “0% credit”, “Enjoy now, and the first installment only in six months”. – all these things work on our imagination and make it easier to absolve ourselves of further expenses. Resisting the temptation to buy the next desired thing requires control and self-awareness. An extreme example of this problem is compulsive shopping, which, according to many studies, can be linked to low self-esteem (Yurchisin & Johnson, 2004).

How to start saving money?

Problems with saving can also result from other factors. Why, during a financial coaching session, I analyze with the client what it looks like in his case and we work together to prepare an action plan.

The good news is that anyone can learn to save and manage money better – even if they don’t have good role models from the family home, and are hedonists by nature. If you don’t know how to get started, you can use a ready-made plan. For example, I recommend our recent publication: 4-day financial challenge. This is a simple manual that will guide you through the process of taking control of your household budget.

Of course, saving money requires putting in effort. However, it brings satisfaction and a greater sense of security, and is an indispensable condition for building a financial cushion.