Earning money is hard, saving is a lot harder

Khoa Pham
Khoa Pham
Feb 14, 2019 · 4 min read

You may already know this: “Earning money is hard, saving is a lot harder”.

Why can’t we save anything despite having worked so hard? If you know how to save in effective ways, less than 10 years you can buy a car or a home. Below are some temptations we should be aware.

Buy whatever we like

Psychology “Like and buy” is the most obvious manifestation of the lack of financial management experience.

Everyone wants to enjoy the fullest life. It is best to have a bank card that can satisfy your shopping needs at any time, in short, buy without paying attention to your wallet. But in fact, the great majority of us are based solely on income, which is the monthly salary. So, if you want to dream, you need to buy it again.

For those who have the habit of “impulsive shopping”, you should review your pocketbook and make a list of the most recent bills. So you can control the shopping in your mind.

Don’t know where money has been spent

A lot of people have the feeling that: “Obviously, I didn’t buy anything, but where the money goes?” Money spent on something is not known, proves that this is a person who does not understand a little about financial management. Because, you do not understand the importance of making a reasonable revenue and expenditure plan.

For those who remember it, forgetting to plan their spending is extremely necessary (including a short-term plan for one day, and a long-term plan of up to a year), thereby forming a habit of consumer planning.

By recording the details of your expenses, you can know where your money is going, can’t completely trust your “great brain”. Once you manage your finances well, you can save a good amount of money.

Why do you work so hard but care little about money saving?

Out of money? No problem, credit card

Just a few days after taking the salary, most of that salary was used to purchase essential items, clothes, and supplies … The small amount of money left, soon after was spent. Finally, the credit card is the savior again. That cycle kept repeating month after month, spending was not enough to get out and save.

For those who often waved their hands over this forehead, it is best to open a bank account with no deposit only, each month periodically, the bank will automatically deduct a fixed part of the salary to enter into your savings.

Making money to spend

What is the purpose of making money? For spending.

The vast majority of people who lack the awareness of financial management have such thoughts. Making money is to satisfy consumer demand but not to save.

People embrace the concept of “Live every day like the last day”, how much money is spent today, so when you really need to use money, you don’t know where to find it.

The attitude of life can be called “enjoyment”, it is true that it can make yourself happy and happy for a short time, but really should not be applied to real life.

Money is hard to earn, it is true to meet the needs of living expenses, but there is another purpose not to be taken lightly, namely savings or investment.

Refusing to accumulate is a bad habit, and conservatives who do not want to save should create a collection and expenditure plan, reasonable savings and under the supervision of family members.

Those who do not understand financial management often have a very recognizable trait: prefer to defend themselves.

Whether people are shopping or impulsive shopping, or people swinging their hands over their foreheads, there is a common psychology, that is, when the money is not enough, it turns out that the salary is low and the price escalates.

Have you ever thought about your own consumption concept? Always harsh with external factors but tolerant to yourself. For people like that, the most important thing is to change your mindset as well as your spending attitudes. In particular, they have to learn how to set up spending plans that fit their income and needs.


Simple apps that make sense

Khoa Pham

Written by

Khoa Pham

My apps https://onmyway133.github.io/



Simple apps that make sense

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade