You’d think that the more money you have, the easier it would be to save money, but that’s not always the case. In fact, sometimes it is the complete opposite. So, if you have been wondering why do some people have trouble saving money even as their income increases, here are the top five reasons this happens.
Why Do Some People Have Trouble Saving Money Even as Their Income Increases
There are a few reasons that people seem to have a hard time saving money even when their income increases.
Here are some of the most common.
1. Spending Money is More Fun Than Saving
Let’s face it. Spending money is a lot more fun than saving it.
When you have a good deal of it, you can buy fun things.
Forget the $100 dollar watch or a new iPad.
As your income increases, you can buy the big toys – fancy cars, boats, vacation homes, you name it.
Sure, you should be saving money and you should be saving more than you did when you were making less money, but the temptation is everywhere.
Who wants to save money when you can fly off to Vegas for the weekend?
The lights and slot machines sound a lot more interesting than sitting at home mowing the lawn and watching a movie on Netflix.
2. They Live Up to Their Income
A lot of people simply live up to their income.
It is easy to do.
As income levels go up, they upgrade to a larger home and a more expensive car.
They start to keep up with the Jones as the saying goes.
Perhaps if they have kids, they start providing more opportunities for them as well.
Ice skating lessons, horse riding lessons, and private schools all cost money.
They can now afford these things, but they don’t leave much room for saving and future financial security.
It can be hard to say no when you have the cash, so the extra money goes towards something the family wants instead of into savings accounts.
3. They Never Learned Good Saving Habits
Many American adults never learned good saving habits.
Their parents weren’t savers, so they aren’t either.
Just because they are making more money doesn’t mean a lifetime of habits has changed.
I know that’s true in my own family.
My folks are great, but they were never good at saving money. Like the average family, they had some money in the bank but never a huge amount of savings.
They didn’t teach me good savings habits, and I was never a saver either.
That has changed over the years, but for most of my life I never even had an emergency fund
4. They Work Hard and Want to Play Hard
Some people just feel they are entitled to live well.
They figure they work hard, so they should get to enjoy it.
I can’t fault them for that.
You’re putting a lot of time into your career to climb the corporate ladder, you want to be able to live the good life and enjoy your time when you’re not working.
It only makes sense, but it doesn’t make good financial sense.
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5. It Never Occurs to Them That Things Could Change
A lot of people never give much thought to the future.
They have a good job and are making good money.
They know over time they will make even more money.
Retirement is decades away, so why worry about it now?
What they don’t realize or think about is that the gravy train could come to a screeching halt.
They could lose their job in a down market.
They could be in an accident and no longer be able to work and have to go on disability.
Some other major setback could smack them without warning.
Then all of a sudden, they can no longer afford the payments on that expensive house and car.
They can’t make their credit card payments and everything comes crashing down around them.
The house is gone. The car is gone.
For many, they just never imagine something like this could happen to them, so they keep spending money and tell themselves they will start saving money sometime in the future.
If there is one thing in life that you can count on, that’s change. It could be good or it could be bad, but nothing ever stays the same for long.
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To Sum it All Up:
The reason people have a hard time saving is that they enjoy spending money, they feel they are entitled to enjoy their life today, and they don’t think about what could happen to them tomorrow. Do yourself a favor. Find a happy middle ground that allows you to build your savings as well as enjoying yourself along the way.