5 Very Common Saving Mistakes People Make

One of the critical steps to achieving financial freedom is saving. It is therefore very important that you do it right. Saving may seem simple but in reality, it is a tedious and very involving process especially if you want to succeed at it.

In order to succeed, though, you need to avoid making some mistakes that derail and make the process even more difficult.

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So what are the mistakes to avoid?

Here are some common mistakes people make when it comes to saving money.

1. Stop Spending

Although this seems like a good idea, it can seriously backfire if done without any planning and foresight.

Yes, the best way to save money is to stop spending it but only if you stop spending money on non-essential things. For example, you can stop buying food worth 500 bob daily but you cannot stop buying food altogether.

Most people make the mistake of cutting spending on important things because they did not put much thought into what is important and what is not.

If you stop spending money on healthy habits, in the long run, you will need to spend more when you have to go to the hospital.

So, instead of just blindly stopping spending, it is advisable that you take into account what will save money and what will eventually increase costs in the future.

2. Buying Cheap Instead of Buying Value

This is a common misconception when it comes to saving. People believe that buying cheap things will help cut down on costs. Now, this might be true in some instances but it doesn’t always work.

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For example, if you buy cheap shoes because you do not want to spend a lot of money and a week or two later you have to buy another pair, are you really saving?

If you always have to spend money replacing the cheap things you buy, why not buy something a little more expensive but will last longer.

The trick here is to focus on buying quality items that will last long.

3. Assuming There Is a Quick Fix

There is no quick fix when it comes to financial planning. You do not want to go about saving blindly. Most people start by finding quick fixes to reduce spending.

In order to have good financial habits, one needs to be dedicated and ready to try for as long as it takes. There is no instant fix and as such, you should be prepared for a long journey.

You need to sit down and come up with a long-term plan as well as not just a short-term plan. This way you will be willing

4. Assuming You Must Deny Yourself

This is probably why most people do not want to start saving. They assume that they need to stop doing the things they enjoy and as such tend to delay the process of saving as much as possible.

Yes, your lifestyle has to change but the process does not need to be painful. What you need to do is to learn how to pay less for the services and goods you buy.

For example, if you love eating out there is no need to stop. All you have to do is find cheaper alternatives on where you go. There is no point in going to a place where you would spend 3K on chicken when you can eat chicken at a place that costs half that.

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5. Thinking there is no need to make changes

Knowing about money saving and the various ways to go about it won’t really help you unless you are willing to change your lifestyle to accommodate them.

In order to ensure your saving process is successful, you need to be willing to execute changes when it comes to how you spend your money.

It is important to remember that money saving should be a long-term goal for everyone and so you need to be dedicated and willing. This will ensure you have something to fall back on in case of emergencies and will also enable you to have money to invest in order to improve your financial status.

By Michelle Wanjiku

The writer is a Communication Officer/Digital marketer at Career point Kenya.