7 Reasons You Have No Money or Savings

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money savings, broke, budget, emergency fund

Are you broke with no money in your savings and can’t seem to change that?  This might be pretty straight forward to some of you, but for others, like me, this is precisely what is needed to face our financial situation.

It wasn’t that long ago that I started this debt free journey and I have a long ways to go.  I was saying “I can’t save money” and in actuality, I still don’t have as much in savings as I want.

The first step in improving our financial situation is to understand our situation thoroughly!  Once we fully understand we can start making a change!

Let’s breakdown some problem areas, make changes in those areas, and turn our Dreams into Reality!  I have fallen into pretty much all of these at one time or another and still struggle with some of them!

1.  Emergency Fund or Lack Thereof!

I have talked a lot about this emergency fund in my posts! 

I now have a perfect example of how important this is if you are trying to get out of debt.

Over the last several months I have been able to wipe out thousands of dollars in credit card debt, but I am still doing it wrong.  My emergency fund is not up to the amount I want it to be.  I am working towards it, but I should have wholly funded that first!

Last night, solely due to my emergency fund status, I went back on my debt repayment plan!  My air conditioning went out in my home.  So, on a Saturday, a technician arrived at my house to fix it.  Thankfully, it is now fixed, but I had to put that bill on a credit card!

That one item pretty much set me back one full month on my plan to become financially free!  If I had my emergency fund already established I would be fine!

I cannot stress enough the importance of this if you are trying to become debt-free!  One of the easiest ways I have found to save money is by using Digit. Read more about that here!

Further, another GREAT way to add money to your emergency fund is to use Ibotta! You will earn cash back on everyday purchases! Ibotta has paid out over 500 million dollars to its users! Get some of that money for yourself!!

2.  You Want Something and Feel You Need It.

I will never forget a conversation I had with my Uncle many years ago.  Unfortunately, I remember it so vividly because I thought it was sort of funny, but now I wonder why I didn’t listen to it and get smarter on my finances.

One day, we were talking about televisions.  This was back when LCD televisions were brand new, and they cost a lot of money.  My Uncle said, “man I want one of those televisions so bad.”  Well, at the time I knew that he had a substantial amount of money in his savings.  The only debt he had if I recall was his vehicle, rent, utilities, etc.  He did not have credit cards, personal loans, none of that.

So anyway, I say, “dude, you have thousands of dollars in your savings, if you want one then go buy one.”  He responded with “yeah, but I don’t NEED the television. I only WANT it!”

Make sure you really need something before you buy it if you want to be financially free! Moreover, the cost of a television not too many years ago compared to now is unbelievable!!

3.  You Use Your Credit Card As Income.

I can’t even explain how guilty of this I am.  For years I paid minimum payments on my credit cards and used them like they were going out of style!  If I wanted something and didn’t have the money for it, I charged it!

The best way to explain this is YOLO!  You Only Live Once!  I lived with this attitude for my entire life, until recently!

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If you want to be financially free, obviously you cannot live this way!  Stop using those credit cards except for in emergencies only if you don’t have an emergency fund!

Please read this article about credit cards and how it ruins our finances!

4.  You Don’t Have a Budget.

Not having a budget is one of the worse things you can do!

It is effortless to spend all your money and then wonder where it all went if you don’t have a budget.

I recently documented everywhere my money was going for 30 days.  The results of this were eye-opening!

Now that I have that info I have been working on a solid budget plan for us to utilize!  I believe this is going to help us achieve our goals at a much faster rate.  Most importantly, I don’t think we can make our goals at all without a budget!

Above all, make sure you use a budget planner or, at least make sure you are more organized than just jotting down some notes on a random piece of paper!

5. You Deserve the Things You Buy.

I have done this so many times.  I work day in and day out.  I see something I want.  I tell my self you work so hard to earn this money, so you deserve to treat yourself with this item!

Further, you rationalize it with the things I have already spoken of, such as using your credit card as a source of income or you tell yourself you NEED it!

This is undoubtedly the wrong attitude to have if you want to be financially free!

6. You Don’t Think About How Things Add Up.

Do you spend money every day one an item, and think it’s only two dollars.  That’s not very much money to spend.

Meanwhile, you spend that every single day for 30 days and that now becomes 60 dollars you spent.

That still doesn’t seem like a lot of money, but if you are struggling financially it most certainly is!  What if it is more than two dollars?

For example, I used to go to Starbucks every day and buy a Venti White Chocolate Mocha.  Those are over five dollars each.  In fact, some days I went two times, before and after work!

Meanwhile, if you feel you have to have that delicious coffee, then I strongly suggest you make some extra money on the side to pay for it! I make over 100 dollars every single month completing surveys in my spare time! Try it out for yourself and see if it’s worth some of your spare time!!

As a result of that, I was spending more than 150 dollars every month on coffee!  Most importantly, that was also affecting my waistline in a very negative way!

Therefore, please think about how these things add up and decide if you need it or if you want it! This is a huge reason for having no money!

7. You Believe You Can Save Later.

Here is the single biggest thing I regret thus far in life!

I don’t have a single cent set aside for retirement!  I have spent the last 26 years of my working life believing that I can worry about retirement later!  As a result of my YOLO attitude, I am getting closer to retirement with every day that goes by!

See Cheap Tasty Meal Plans!

Above all else, please start planning for your future!  Please work towards being financially free NOW! 

In conclusion, as I have stated, I started this blog to keep myself motivated and to motivate others to chase our dreams of being debt free!  I sincerely hope that the mistakes I make and document will help you not to make those same mistakes.

Most importantly, I hope that the methods I am using to become debt free help all of you as well!

YOUR TURN – Firstly, what are the things you do that hurt your financial goals?  Secondly, what advice do you have for all of us that can help with any of these areas of concern?  Please leave your remarks in the comments and please share this and any of my other articles if you find them helpful!

Survey Junkie

4 thoughts on “7 Reasons You Have No Money or Savings

  1. I was very guilty of the credit as income one. When my husband and I first moved in together (right out of college), we were broke. There were many times we used our credit cards as income (because no one ever taught us any different). This is something we’re working really hard to teach our kids. Great post!

    Megan | https://gingermomandcompany.com

    1. Megan, Thank you. I was never taught this either and learning it now, later in life, is not fun at all!

  2. Great post here. I think a lot of people fall under this dark umbrella of no savings. #5 and #6 is where I think most people fall under…

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