Can't Save Money in Denver

Why So Many Women Can’t Save

It’s old habits and old attitudes, NOT genetics, that keep us from controlling our cash flow.  It’s time we understood that saving is not like a diet.  You don’t need to cut back, deprive yourself, or do without in order to save.  The thing is, we’re all struggling to live by the 60% / 40% solution, which is paying bills for housing, food, utilities, and necessities with 60% of your income, and relying on 40% of your income for life’s inevitabilities, including “fun” and “savings”. 

So what’s the problem?

A recent Consumer Federation of America  survey found that:

- 71% of women worry about their finances.

- Nearly half (49%) say they lose sleep over it.

- Unexpected expenses were the biggest cause of financial angst.

- The median cost of sudden expenses was $400, with total emergency expenditures running about $2,000 a year.

- 42% of women have less then $500 in savings. 

- Younger women, ages 24 to 35 were worst off, with 55% admitting they had less than $500 in emergency savings. 

- Two-thirds of all non-savers don’t have a savings account.

So what’s the solution ?

Develop a new way of thinking about your money, and ditch the old excuses.

Negative: “How can I save if I can barely pay my bills?”

First, find ways to reduce your monthly overhead.  Second, create a savings strategy.

Negative: “I don’t know where the money goes!”

People don’t save is because they avoid doing the math and realizing that they can and need to create a budget.

Negative: “Saving means I’ll have to live on less”

This is the worst excuse because it’s so backwards. Pay yourself first with savings and then spend less on your monthly living expenses.

Savings is not a subtraction. In fact, savings is an addition to your freedom and well being.  Success requires embracing  a cash-flow mentality, almost as if you were a corporation.  Savings are the profits for you the only shareholder, and expenses are part of the budget.  So, take a little out of each paycheck and manage your future and your own destiny.  It’s a huge payoff in the long run.

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