10 Reasons Why You Can't Save Money

Last Updated by Neiko Johnson on 
August 14, 2021
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10 Reasons Why You Can't Save Money

Have you ever wondered why you can't save money?

It may seem obvious why someone has no money but sometimes talking about why a person has no money is needed.

In fact, to deal with financial issues it's important to be realistic about the main reasons.

There are many people who can't save money and are searching for solutions. They want to get out of debt but can't understand why they're stuck.

Above all, knowing the underlying issues will make it a lot easier to make a positive change.

Once you figure out the reasons why you can't save money, you'll be able to make better financial decisions in the future.

Certainly, some things in life require money, but we believe it's important to have a solid financial foundation that can help most people reach their goals.

Related reading on why you can't save money:

You don't understand the basics of personal finance

Understanding the basics of personal finance is not a natural skill. To put it differently, you weren't born with the necessary information to make great financial decisions.

Most importantly, to be successful with money, you have to learn how to handle money the right way.

Meaning, it requires that you invest your time and energy into educating yourself about personal finance. In fact, you should read books, take online courses, follow personal finance blogs, or listen to podcasts.

Regardless, make it a priority to learn the basics of handling money.

A great place to start is by reading The Total Money Makeover by Dave Ramsey. This book was very important for our financial success. We were able to understand how to create a financial foundation and make it work for our situation.

It's a great guide for a beginner looking to get started on the right track.

You aren't prepared for emergencies

A big issue a lot of people face is not being prepared for emergencies. This can be a huge reason why you can't save money.

You will experience unexpected events in life and it can set you back on your financial journey. It's not if an emergency will happen, it's when.

You have to prepare for unexpected car trouble, home repairs, or medical situation. There are a lot of ways you can end up struggling to save money by not having an emergency fund.

In fact, you will more than likely end up with more debt by not preparing for emergencies. It's important to be proactive when it comes to finances so you can use your income wisely.

Taking a reactive approach to your finances will keep you from saving money.

Related reading: Financial Security: The Secrets to Generational Wealth

Live without a budget, so you can't save money

If you can't save money, you probably aren't living on a detailed budget. Budgeting may seem boring or restrictive, however, you're giving yourself permission to spend when you budget.

Budgeting is important and necessary for financial success. It's your blueprint to how much money you earn and spend each month.

Above all, budgeting allows you to stay on track and know where you stand financially.

How do you expect to make adjustments with your finances if you don't budget?

If you can't save money and you're ready for a change, then create a detailed budget so you can start proactively managing your money.

You have too much debt

Carrying too much debt can hold you back. Debt is a reason why you can't save money and reach your financial goals.

Debt makes it difficult to build wealth especially the longer you stay in debt.

Your debt may start small but continue to grow due to the high-interest rates you may have.

In fact, some people have debt balances double what they started with.

This is the exact reason you must live on a budget and pay off your debt as fast as possible.

So, to save more money, you have to stop taking out more debt and focus on your current debt.

Related reading:

Your mortgage payment is too high

Most people buy too much house and aren't even aware of it. If you're putting more than 30% of your monthly income towards a mortgage and you can't save money, then your house is part of the issue.

In fact, if you add a car payment, student loans, and a medical bill on top of your mortgage, it's clear why you can't save money.

On the other hand, owning a house is great and we are all for homeownership. However, we want the house to be a blessing, not a curse.

You have to determine how much longer you can keep the mortgage at the current payment and assess your next steps.

Sometimes refinancing your mortgage can help lower the payment but it all depends on your specific situation.

Related reading: How to Prepare Yourself for Homeownership

Too much eating out, so you can't save money

Eating out can be very convenient but hurt your pockets at the same time. You probably can't save money if you're eating out too much.

It's easy to get lazy and not want to eat at home. But, you're probably buying groceries and still spending money eating out. You're increasing your food expense tremendously by doing so.

If you aren't careful with budgeting for food it can be a major blow to your ability to save money.

You can find ways to save money by using cashback apps when shopping for groceries. A useful app that helps us save is Ibotta. You can earn cashback shopping in-store and online.

You think wants are needs

When it comes to your finances, some items are necessary and some aren't. Some people can't save money because they think wants are needs.

Remember, there are only 4 categories that you actually need and they include: shelter, clothing, food, and water.

Other items such as gym memberships, cable, eating out, a nice size home, and so on are wants and not 100% necessary.

To be clear, it's nice to have those things but you need to cut out those that are hurting your budget if you can't afford them.

You lack specific goals, so you can't save money

Struggling to save money can be impacted by not having specific goals for your finances.

Successful people are clear on their goals and create a plan to achieve them. People who can't save money need to focus more on setting goals and making a plan to reach them.

Above all, if you're not setting goals, then you may lose motivation to improve your finances.

Your income is too low

In most cases, increasing your income will help solve a problem. When you can't save money, you may need to find a higher-paying job, part-time job, or side hustle.

This is especially helpful when paying off debt so you can become debt-free and use your income to increase your savings.

Starting a side hustle can become a full-time income if you work hard enough. It's all about choosing something you're passionate about but can also make money doing.

The day we started our blog it helped us increase our income and bring more purpose to our lives. We are now able to impact people through personal finance and it's an additional stream of income.

You can start a blog for as low as $3.95/month and in less than 15 minutes with our step-by-step guide on how to get started.

You can learn about how to increase your income at:

You lose motivation when you can't save money

The final reason is the one mistake a lot of people make. When things don't go well we are quick to want to give up.

But, when it comes to money things won't always go as planned. It takes being patient and understanding how and when to make adjustments.

When we first started on our financial journey we struggled with paying off debt fast and understanding the key concepts of personal finance.

But, we decided to learn as much as we could so we could change our family tree and help others do the same.

Now, we have no excuse why we can't save money or be wealthy.

Ultimately, taking baby steps and saving money as you go, will benefit you in the long run.

Even if you're only saving $100 a month, for now, it's better than saving nothing.

Do you know why you can't save money? In what ways are you trying to change that?

Article written by Neiko Johnson
Neiko is a personal finance expert and Co-founder of Secret to Finance. Along with his wife Alexis, they learned how to get out of debt and paid off $400,000 in 4 years.

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