Why you can’t save, and how to fix them

March 4, 2014

Here are some common financial mistakes to take note of and how you can save that money for better use instead.

By Michelle Brohier

There are many reasons why people are struggling to save, from the low salaries to the high cost of living. If that’s not tough enough, there’s always that possibility of you spending more than necessary, or even spending it wrongly due to your own financial decisions.

That doesn’t mean there’s little you can do about it though. You can always take note of the decisions that you’re making with your money and find ways to either put it into saving or to benefit you more.

Here are some common financial mistakes to take note of and how you can save that money for better use instead.

Getting those summons or fees
There are some fees that cannot be avoided, but there may be a few that if you knew how to avoid them well, you could be putting that money to better use. Be it due to credit card fees, late rental fees, or even speeding or parking tickets, all of this could be avoided with careful planning on your part. It just takes some discipline to avoid spending more than necessary on these things.



Buying things you don’t need
It’s hard to resist buying something new; you know what they say about new brooms. But when possible, look into buying used items instead as new items or staving off until you really need that new pair of running shoes. It’s admittedly difficult these days with things being made to wear out quickly so you’ll have to buy a new one but if you don’t have to, don’t toss it out just yet!

Bad stock market decisions
Investing in stock markets are a great way to build your income, but it’s incredibly important to do research or consult a proper fund manager if investments aren’t your forte. Instead of being swayed by popular opinion, invest your money the way you (and your finance advisor) is most comfortable with.

 

Forgetting to use your Reward Points or other benefits
It’s always good to keep track of your reward points as you could be able to save on the items you want to purchase. For example, instead of buying a new blender, you could use the reward points you’ve accummulated to get you one without having to spend a single cent. Which is why if you allow your reward points to expire, you’re letting go of free money in a way.

Investing in yourself wrongly
While it’s great that you’re spending your money on those piano or tennis lessons to make yourself feel better, how about monetizing the skill? Once you’ve mastered the art; opt to teach others yourself. The fee is always useful. If you don’t want to turn it into a job – look to other ways to make the most of the investment. Enter competitions with cash or other prizes to build your reputation. Who knows, you could do well enough to earn a slew of interested students willing to pay!

Depending on the skill you are learning – there are many ways to make money with it. It just takes a wee bit more effort.

There can be certain circumstances where spending more is unavoidable, but it’s always better to take control of your expenses instead. So take note of the decisions that you’re making with your money, and do what you can to save and make the money work for you instead.

This was brought you by MICHELLE BROHIER from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.