This Is Why You Can’t Save Money

These are 10 common reasons why people have trouble saving money.

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Chapters

00:00 Start Here
00:37 Not Having Money Saved
01:50 An Expensive Car Payment
02:58 Not Buying Quality
04:29 Being House Poor
05:33 You’re Living Alone
06:51 Your Vices Control You
07:55 They’re “Unlucky”
08:59 You Don’t Earn Enough Money
09:57 You Don’t Have A Strong Enough Why
10:50 You Live A Chaotic Life

Some people are very good at saving money and have a high savings rate, while other people are very bad at saving and have a low savings rate or do not save anything at all. People who have trouble saving often don't understand the reasons why they are unable to save. In this video, I share 10 common reasons why people can't save money.

1. Not Having Money Saved

It's hard to save money when you don't have money saved because when a surprise expense comes in life, you're easily knocked down and have trouble getting ahead. Once you are behind financially, it is very hard to get back ahead. If you don't have money saved, it is important to take drastic measures to save money because until you have money saved, it is very hard to save money.

2. An Expensive Car Payment

Cars at the number one wealth killer because they are so expensive. The average monthly payment for a new car is over $700 and for a used car is over $500. It is important to not fall into the trap of getting an expensive car payment because they prevent you from being able to save more money.

3. Not Buying Quality

Although it is important to not overspend on an expensive car payment, it is also important to not under spend and get a bad quality car that causes you a bunch of problems. Many people will buy bad quality things and then constantly have to pay more because of the quality.

4. Being House Poor

The biggest expense in most people's budget is their rent or mortgage and the rule of thumb is that your rent should not exceed 30% of your income; however, many people spend more than that on their rent and are unable to cover their other expenses and save. This is called being "house poor." Many people are house poor where too much of their budget goes to their rent and they're unable to save.

5. You’re Living Alone

The reality in today's housing market is that most people are unable to afford keeping their rent under 30% of their income unless they live with other people. Living alone is very expensive because you have to pay for 100% of all expenses. Many people have trouble saving money because they live alone.

6. Your Vices Control You

Vices like cigarettes, beer, and lottery tickets often create many financial problems for people where even though they're struggling financially, they spend their money on these vices because they control them. Many people are unable to save money because their vices control them.

7. They’re “Unlucky”

Some people seem to run into more financial surprises than others and they often think it is because they're unlucky. Having bad luck over along period of time often means that they're are making bad decisions. If you always have bad things happen to you, look at your decisions and you might be able to save more.

8. You Don’t Earn Enough Money

Although it is important to cut out small expenses like eating out or switch to a low cost cell phone plan, the biggest factor that determines how much you can save is your income. If you are making a low salary, it is will be hard to ave no matter how many corners you cut.

9. You Don’t Have A Strong Enough Why

An important thing that motivates people to save money is knowing the reason they are saving. Many people struggle to save money because they don't have a strong enough why.

10. You Live A Chaotic Life

Some people are unable to save money because they live chaotic lives where they don't budget, don't have a plan, and are always stressed out, which causes them to spend more. If you life a chaotic life, it is important to make intentional decisions to bring order in your life so you are able to save more money.

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[lottaohlsson]

I live alone in Sweden and I'am able to save 75% of my income, because I have a low rent. I only save money to feel free.

[Jack_huntakilla]

I've lived in a 250 a month shared room with strangers who play loud music, smoke in the room etc. I've also lived alone in a 500 a month own unit alone but overall my quality of life is muuuuch better. I'd choose living in that 500 a month unit over and over again. Some things aren't worth the sacrifice nor the money saved

[caitlynpotter]

I am so happy that i made a productive decision about my finances that changed my life forever. I am a single mother and i live in Florida, i bought my first house in September and i hope to retire next year at 40 if all goes well. Thanks to Mrs Judith M Layton for helping me achieve this.

[bernadofelix]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[JonaaBLKWL]

I've been on disability for the last decade and couldn't improve my income. I'm now in my 30s and finally on the right meds (still trying to get to the right doses). Now I'm going to community college and hopefully I'll have my first proper job by the time I'm in my mid 30s. I'm tired of barely having any money and dealing with social security every time they try to screw me over. I might be behind, but it's not too late. Watching vidoes like these helps remind me of my motivations

[richardbudzic]

If you get the wrong roommate to 'split the cost' of housing, you could end up paying spending more than if you were living by yourself. Thank you for your videos!

[crazyadventuresandreviews]

I use to live with a billionaire from Italy when I was a kid during the summers and her house was a two bedroom 2 bath in Florida with no AC. She bought her clothes from thrift stores and drove a vw van from the 80s and her friends were millionaires and they all lived the same life style but had air conditioner

[Ceilinggurl]

Single moms can’t really have roommates . Wouldn’t want that kind of life for young kids. Too uncomfortable for all involved also unsafe.

[SlingsAxes]

Regarding skimping on quality, I remember my dad telling me
Always buy the best. It's usually the cheapest.

As in
Always buy quality tools and don't be tempted by the cheap Chinese stuff
Not only will the cheap ones break and need to be replaced, you might end up with blocdy knuckles and require a doctor visit.

[kristenkenyon]

Congratulations on 100, 000 subscribers!!! It was well earned!!!🎉

[danicegewiss]

We save a huge amount of our income. I cut much of our grocery budget by making my own cleaning products, bread, and more. We don't buy tp or paper towels. The last vehicle we bought we paid cash for. We save for everything. We bought a fixer upper, paid it off early, and turned it into a beautiful home.

[JaseVaughn]

I have to disagree with you on dealerships. When buying cars, they can be just as slimy as a private seller trying to scam you.

[snrslqz]

In 2022, I was 55 years old and making 90k, living single. My prior rent to income was about 40%.

In 2023, I became quite ill and was forced to retire. Now I am on a fixed income and I’ve had to move overseas where my current rent is 30% of my retirement income. The key is to be flexible in life.

[sylviasepulveda]

Thanks for the reminder of save money 😅my husband and I have very little income and we still have ben able to save 50.00 % of our income because we live with a budget we think is not how much you make is how we spend the income 😊is awesome 👏

[Nettingyournetworth]

I can't save money because my savings keeps getting depleted due to emergency vehicle expenses, unexpected medical bills. I've had to restart like 3 times in the last 14 months because of this and this is coming from someone who follows the 50/30/20 rule. Im considering just going frugal and just save everything and spend nothing on my self anymore

[TimeToStartOver]

To pay 50% of your income for rent is pretty common here in Germany. All living costs have gone crazy over the last years. Makes saving even more difficult.

[GechinaRomano]

Thank you Lord Jesus for the gift of life and blessings to me and My family $14, 120.47 weekly profit our lord Jesus have lifted up my Life!!!

[WilliamsleeHogan-nmem]

I'm favoured, $22K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America..,

[Ashermicheal]

kiana rachel was my hope during the 'bear summer' last year. I did so many mistakes but also learned so much from it, and of course from kiana rachel.

[surfside]

Easy.. toyota, honda, mazda -do specific research on each as far as common troubles and maintenance with the model your wanting to buy.