Saving money is like dieting. You have the best of intentions, but when the chocolate cake of impulse purchases is staring at you, it's hard to say no. To be honest, I've never been very good at dieting, but I have been able to become better at saving. It only took me ten years, but little by little, I've figured out my own personal answers to the question, “Why can't I save money,” and my own workarounds so I can be successful.

I'll share my tips and tricks below, but here's the thing. Saving advice (like all kinds of money advice) isn't a one-size-fits-all. Pick a few savings initiatives that feel doable for you, work at them consistently, and see what happens. And if you fail, keep trying. Learning how to save is a crucial skill because as I say: money is a lifelong journey. You'll need to save money for the rest of your life. (Hi, welcome to adulthood.)

If you’re ready to get serious about saving, it’s time to take a hard look at your habits and how you can make some changes to help build a secure financial future. 

Millennials face a number of financial challenges that make it hard to save, including high inflation, rising housing costs, and student loan debt. And when you add on a lack of meal planning, high-interest credit cards, inflation, and lifestyle creep, it’s impossible to save. The suggestions below may just provide the antidote.

15 Reasons Why You Can’t Save Money

Reason #1: You Don’t Prepare for Unexpected Expenses

It's hard to get ahead when you're constantly playing catch-up. Your car breaks down, the roof starts leaking, or your beloved pet needs an emergency trip to the vet. These types of unexpected events can happen at any time and will have a significant financial impact. Unless you have a crystal ball, there's no way to predict when these events will occur. 

However, having an emergency fund can help you weather these storms and avoid going into debt. The biggest savings bucket you should have for the unexpected is called an emergency fund.

The amount of money you should have in your emergency fund will vary depending on your individual circumstances, but a good rule of thumb is to have enough money to cover three to six months of living expenses. 

If you don't have an emergency fund, now is the time to start saving. Start by amassing $1,000 in a rainy day fund (I like Qapital for this). This $1k will cover you in the event of most minor mishaps. Then try growing it to 6-12 months of expenses.

Even if you can only save a small amount each month, it will add up over time and will be there for you when you need it most. With an emergency fund in place, you can rest assured knowing that you're prepared for whatever life throws your way.

Reason #2: You Don’t Pay Yourself First

Paying yourself first is a great way to ensure that you are saving money each month. Before you pay your bills, buy groceries, or splurge on that new pair of shoes, set aside a portion of your income for savings. (I recommend a minimum of 20%, if you don't have other debt obligations)Doing this consistently can help increase your emergency fund and overall savings.

Here are some ways to pay yourself first:

• Set up a direct deposit from your paycheck into your emergency fund.
• Max out your 401K and take full advantage of your employer's matching funds.
• Save up for upcoming big purchases such as a new car or vacation in a special savings account.

Using the “set it and forget it” method is a great way to save money. It's one of the most popular methods out there because if the money doesn’t hit your bank account you really don't miss it. Unfortunately, too many people live paycheck to paycheck to witness this phenomenon, but if you haven't already tried the “pay yourself first” method, start there.

Reason #3: You Don’t Think About the Long Term

Short-term thinking in finances will leave you happy at the moment but scrambling when it comes time to retire. When you only focus on immediate wants or needs, you miss out on the long-term benefits of saving. Building a robust savings account is a marathon, not a sprint. (And if you're like me, being patient enough to do this takes a huge amount of effort.)

Take some time to sit down and think about your long-term money goals. Where do you want to be in five, ten, or twenty years? Make some changes to your spending habits now so that you can reach your long-term goals later. 

Here are my favorite single-mom budget templates for recent divorcees who need a little extra help navigating their finances.

Reason #4: You Don’t Make Enough Money

9/10 when someone tells me they want to save more money, I tell them to go out and earn more. Not only do I believe money to be a renewable resource, but it's just easier to earn more than cut back from a psychological perspective.

Trying to save on a low income is like trying to fill a bucket with a teaspoon. It's possible, but it's going to take a while. It may require some creativity, extra effort, and patience, but even the smallest savings can add up over time. Every penny counts, so don't disregard those teaspoons of savings.

Save any unexpected money such as:

• Birthday or Christmas money
• Tax refunds
• Rebates

Saving the lion's share of every single windfall I've gotten over the last ten years (through real estate and the sale of this blog) is the largest way I've grown my wealth. And this may be your circumstance, too. You may not be good at saving little by little, but you can resist temptation and chunk it away when the windfalls hit.

Also — don't discount the opportunity to earn more at your W2 job. If you can’t make more at your job, this might be a good time to start a side hustle. There are plenty of things you can do that will bring in a bit extra without taking up all your extra time.  

Reason #5: You Give In To Lifestyle Creep

Lifestyle creep happens when your income increases and you let your expenditures increase as a result. Before you know it, you're living paycheck to paycheck despite earning more. It's essential to keep track of your spending habits and ensure that as your income grows, your savings do too, not just your expenses. 

The biggest kiss of death for this is upgrading your house or your car as your income (and family) expands.

When you get a raise at work, make a plan for the extra money instead of just letting it sit in your account. Put a percentage into your emergency fund, use part of it to pay off debt, or put it aside for an upcoming expense. 

Reason #6: You Don’t Plan Ahead for Meals

When you don’t plan ahead for meals and snacks, you’ll end up with expensive convenience food. It’s not possible to plan ahead 100% of the time, but you can save a lot of money by having a meal plan and quick snacks to grab when you’re busy. 

If you don’t know how to get started, try a meal plan service or sign up for a subscription meal kit box. One of the easiest ways to save money on food is to make a plan for the week and actually do one large grocery shop instead of stopping every day to grab a few things for dinner. 

Reason #7: You Have Too Many Subscriptions

Subscriptions can end up draining your savings quickly if you’re not paying attention. Take a look at your bank account and credit card bill and cancel the ones you aren’t using. It might seem like that $9.99 isn’t a big deal but that $120 a year would be better in your savings account than Apple's.

Be sure to check for unused subscriptions such as:

• Streaming services like Netflix or Apple TV
• App subscriptions like Kindle Unlimited, Audible, or Games
• Memberships to the gym, subscription boxes, or stores
• Newspapers and magazines
• Music streaming like Spotify or XM Radio
• Digital storage like Dropbox, Google, or Amazon

Reason #8: You Accept Bank and Credit Card Fees

Bank and credit card fees can add up quickly and have a significant impact on your finances. It is important to be aware of the fees associated with your accounts and take steps to avoid unnecessary charges. Here are a few tips:

• Read your account statements carefully to make sure you understand all of the fees.
• Ask your bank or credit card company about any fees that you are not sure about.
• Consider switching to an account with lower fees. (Or better still, one with ZERO fees.)
• Avoid using your credit card for unnecessary purchases.
• Pay your balance in full each month to avoid interest charges.

I don't like to be too “in the weeds” with my finances either. A little bit of interest here and there won't kill you (personal finance gods, don't smite me!) But every little bit counts, especially when it comes to how much you have left to save. If fees are eating up what little you have to set aside, it's time to get real.

Once you’ve reduced the fees on your accounts, be sure to set up an auto transfer into your savings account before that money gets sucked back into your regular budget!

Reason #9: You Don’t Negotiate Your Pay

If you are adding value to your company, don't be afraid to negotiate for a salary that reflects that. A higher income can significantly increase your savings potential. Don't be shy, step into that negotiation room and claim the value you deserve.

Here are some tips for negotiating a higher salary:

• Do your research and know your worth. (Websites like LinkedIn and Payscale can help with this!)
• Be confident and assertive.
• Be prepared to walk away if you're not happy with the offer.
• Don't be afraid to ask for more.

Remember, you are worth it!

Reason #10: You Have a Large Car Payment

Oh my god, another kiss of death! [insert crying laughing face emoji] But seriously. Having a large monthly car payment will significantly cut into your ability to save month over month. And they're appreciating assets. Fortunately, there are a few things you can do to lower your payment. 

First, consider opting for a less expensive car (or even going car free!) This may mean buying a used car instead of a new one or getting a smaller car that gets better gas mileage. Second, you can refinance your car loan to get a lower interest rate. This can save you money on your monthly payments, but it will also extend the length of your loan. Finally, you can try to make extra payments on your loan each month. This will help you pay off your loan sooner and save money on interest.

It is also important to shop around for the best interest rate when you are financing a car. The interest rate you are offered will depend on your credit score, the type of car you are buying, and the length of the loan. It is worth taking the time to compare rates from different lenders to get the best deal. A difference of even a few percentage points can save you hundreds or even thousands of dollars over the life of the loan.

But in my opinion, having a paid-off car is one of the biggest budgeting game changers.

Reason #11: You Don’t Have Detailed Financial Goals

If your current financial strategy is to ignore your bank account until something bounces, consider this your sign to sit down and think about where your money is going. It is important to set clear and specific financial goals and create a plan to achieve them. 

Your goals can cover a variety of wants and needs but make sure they are specific and measurable. For example, instead of saying “I want to save money,” say “I want to save $1,000 in six months.

A healthy emergency fund should be your number one priority before tackling other financial goals. Once you have a healthy emergency fund, you can start to tackle other financial goals, such as paying off debt, investing, or saving for retirement. You'll never get ahead until you stop living in the red.

Reason #12: You Live in an Area With a High-Cost of Living

Okay, so no one likes to talk about this because it isn't sexy or fun, but housing is often a person's biggest cost, so the city you live in, as well as how you live are important. Especially if you'd like to start saving money.

Prices are rising everywhere but there are parts of the US where the cost of living can make savings impossible. If you are living in one of those areas start by looking into ways to cut costs such as downsizing your apartment, getting a roommate, cooking more meals at home, and using public transportation. 

Moving to a new city with zero funds can be done, but it will require some planning and effort. When I was in my early 20s I moved from Atlanta to NYC with a suitcase and $300 in my pocket. At the time, I wasn’t moving to live in a cheaper area, but I learned a lot about moving with little to no money. 

But often, living in a HCOL area can't be helped. They're expensive for a reason: they offer more amenities and job opportunities, which also impacts your income.

Here are a few tips to help lower your housing costs.

• Increase your income. This could mean getting a part-time job, starting a side hustle, or asking for a raise at your current job.
• Research cities with a lower cost of living. There are many great cities out there that are more affordable than your current city.
• Network with people in your new city. This could help you find a job, a place to live, or even just some friends.
• Be prepared for a challenge. Moving to a new city is a big adjustment, but it can be a very rewarding experience.

If you're willing to put in the work, moving to a new city with zero funds is definitely possible. Just be sure to do your research and plan ahead, and you'll be well on your way to a new and exciting chapter in your life.

Reason #13: You Don’t Budget for Entertainment and Fun

Including room for entertainment and fun in your budget is very important. It can actually help you stick to your savings goals without feeling deprived. When you budget for fun activities, you are less likely to feel like you are missing out on anything, which helps you stay motivated to stick to your savings goals. 

Additionally, budgeting for fun can help you avoid overspending in other areas. Remember: deprivation never solved anything. When you know that you have money set aside for entertainment, you are less likely to impulse-buy things that you don't need.

Here are some tips for budgeting for fun:

• Set aside a specific amount of money each month for entertainment.
• Look for free or low-cost activities to enjoy.
• Be creative and find ways to have fun without spending a lot of money.

Remember, it is important to have fun and enjoy your life. Budgeting for entertainment can help you do this without derailing your savings goals.

Reason #14: You Have Excessive Student Loan Debt

If you’re one of the 15 million millennials with student loan debt, you know how hard it is to save on top of all those loan payments. Student loan debt can be a major financial burden, and it can be difficult to know how to manage it. Here are a few tips for repaying student loan debt:

• Refinance your loans if possible. This can lower your interest rate and monthly payments.
• Make extra payments whenever you can. Even a small extra payment each month can make a big difference over time.
• Explore forgiveness programs. There are a number of programs available that can help you forgive your student loan debt, such as the Public Service Loan Forgiveness Program.

It is important to pay off your student loan debt as quickly as possible. The longer you wait, the more interest you will accrue. By following these tips, you can get out of debt and start saving for your future.

Reason #15: You Rely on High-Interest Debt

According to Business Insider, “Though average mortgage rates tend to hover around 3%, the average mortgage rate rose to just over 6% in 2023. Federal student loan interest rates for the 2022 to 2023 school year are 4.99%. The average personal loan interest rate is 9.41%, while the average credit card has a 20.40% interest rate.”

Ready to tackle your high-interest debt? Here's my VERY in-depth guide on how I paid off $8,000 in debt in under 90 days. But if you want the high-level version — start by gathering all your debt information, including the outstanding balances, interest rates, and minimum monthly payments. This will give you a clear picture of your debt obligations.

• Next, determine which debts have the highest interest rates and focus on paying those off first. Consider using the avalanche method, where you make minimum payments on all debts but put any extra money towards the one with the highest interest rate.
• If applicable, consider transferring high-interest debt to a lower-interest-rate credit card or personal loan. This can help reduce the overall interest you pay and make it easier to pay off your debt faster.
• If your debt situation feels overwhelming or you're struggling to make progress, consider reaching out to a financial advisor or credit counselor. They can provide guidance tailored to your specific circumstances and help you develop a plan to get back on track.

By actively working towards eliminating this type of debt, you'll be able to regain control of your finances and start building up your savings for the future.

Conclusion

Saving money can seem like a goal that you’ll never achieve. But by changing some of your habits, make a financial plan, and sticking with your budget, you can build up a healthy savings account. You don’t need to make all 15 of these changes today, pick one or two to get started on your savings journey.