You might be wondering why it seems like your money keeps disappearing into thin air or you keep wondering where it went even though you get raises frequently. Before the end of every month, you’re already begging for urgent 2k. It has become a normal thing for you and you cannot help but ask why? Here are seven potential reasons that can help you answer those questions.

Spending money as your income increases

You can never improve financially if you keep spending money (increasing your spending capacity) as your income increases. The need to always spend or buy something might be the reason why you’re not meeting your financial goals if you have one. You will not be able to save adequately because the extra one you had, you already used to buy something you don’t need but want to show off with.

Focusing on the present without caring about the future

People always say that tomorrow will take care of itself but is that true with financial expenses? If you don’t think and prepare for future expenses, how do you think the expenses will take care of themselves. There is a need to think about the future by saving for it.

You think it’s too early to start saving

There’s no right time to start saving. It’s not too late or early to start saving as far as you’re able to. The truth is that the more you wait, the farther you are from reaching your financial goals. We know that saving can help in case of an emergency or an unexpected incident. The good thing about saving is that it improves discipline and helps you make good financial decisions.

Not tracking your finance

There’s a need to keep track of your income and expenses so that you know where your money is going. Whether it’s a large or small expense, you need to be able to keep account of how you spent your money. This way you’re in full control of your finances and able to determine where you can improve in your financial decisions.

Lack of budgeting/poor budget

The need to have a budget cannot be over-emphasized. A budget helps you spend wisely and reduces impulse buying. Also, you might already have a budget but it’s very hard for you to stick to it. You keep making expenses that you didn’t plan for. It’s not enough that you have a budget, you need to stick to it and it requires discipline. One trick I would always recommend is using the budget to zero method. Here, you are supposed to make sure every single piece of money is doing something for you. In other words, make sure you don’t have any spare money lying around. That way, you can control overspending.

Not having financial goals

Not having financial goals can make you spend aimlessly and without purpose but when you are clear about what you want, it would give you the motivation to work towards it. Whether you’re planning to buy a car, land, or save for school, make sure the goal is clear and work towards it. Obviously, if you plan to have a certain amount in a period of time, it would motivate you to spend less and save more.

Ignoring your debt

Debt payment can be very stressful especially when it comes to huge interest. It could continuously take large chunks of your income especially when you don’t pay on time. It is important to focus more on paying your debts if you have. Some people relegate their debts to the background like it’s not important but the truth is that the more you stall, the higher your debt increases. One simple trick I would advise is to draft out a repayment plan, It should be at the center of your budget to help you keep track.

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