Money 101

Why Do Most People Fail to Save Money?

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When it comes to saving money, many people feel confident they’ve got it down—skip a few purchases, catch a sale, and voila, instant savings! But saving isn’t always that simple, and a few common misconceptions might actually keep you from reaching your goals.

So, why do most people fail to save money? Here’s a look at three things most people don’t realize.

1. Not Spending Isn’t the Same as Saving

One of the biggest mistakes people make is thinking that simply not spending money means they’re saving.

Now, on the surface, it seems logical—if you don’t buy that $5 coffee, you must be saving $5, right? But here’s the truth: unless you actually move that unspent money into a dedicated savings account or toward a specific goal, you haven’t really saved anything. It’s just temporarily unspent, sitting in your checking account where it’s far too easy to spend later. (Watch Later: Free Coffee Hack Video)

Really think about it: How often have you skipped a purchase, telling yourself you’re saving, only to spend that same money a few days later on something unnecessary? You might pass on takeout today but end up making an impulse online purchase later in the week. So, the money didn’t actually get saved—it just got redirected to a different purchase.

So, what can you do?

First, you have to make saving intentional. Anytime you choose not to spend money, move that amount into a savings account right away. This way, it’s out of sight and much less tempting to dip into. Because if the money just sits in limbo, you’re going to spend it. (Related: Download your mindful spending MONEY MINDSET BULLET JOURNAL — it’s your personal spending coach). 



2. Delayed Gratification vs. Delayed Spending

Delayed gratification is when you purposely hold off on buying something now to make a smarter financial decision later.

For example, you might wait to buy something until you’ve saved up the cash, rather than putting it on a credit card. Or, you might take time to shop around for the best price instead of making an impulse buy. In this case, you’re using the waiting period wisely to make a better decision.

On the other hand, delayed spending is when you put off buying something today but end up spending that money later without any additional thought or planning.

Let’s say you see a new tech that catches your eye, but you resist the urge to buy it right away. However, over the next two or three weeks, the money is still burning a hole in your wallet. Eventually, you cave and buy it.

This might seem responsible since you put a waiting period in place, but the problem is that you’re buying it under the same conditions as before: You haven’t saved up any money, meaning you’re using credit, you haven’t shopped around, and you haven’t considered whether this is even the right time to buy it. So, you didn’t really practice delayed gratification—you just delayed the act of spending.

To avoid this, one strategy is to create a sinking fund for unexpected and larger purchases. Move money into a dedicated account for items you’re saving for. That way, when you’re ready to make the purchase, you’ve already done the work of saving and can feel good about spending the money intentionally.

This approach also gives you time to research and ensure you’re getting the best deal, rather than giving in to the first option that pops up.



3. Two-for-One Deals Don’t Always Mean Savings

Everyone loves a good deal, and sales can feel like the perfect opportunity to save money. Many people jump at a buy one, get one free offer, excited by the prospect of getting more for less.

But here’s the thing: Even if you’re getting one for free, if you weren’t planning to buy that item in the first place, you’re not saving money—you’re spending more.

A deal only benefits you if it’s something you were already planning to purchase. So, just because you’re getting more for your dollar doesn’t mean you needed to spend that dollar. Sales and discounts play on our psychology. They can sometimes trigger what’s called the “scarcity effect,” making us feel like we need to act quickly to avoid missing out on a great opportunity.

But here’s a trick: If you see one of these sales and catch yourself saying, “This will come in handy someday,” or “I’ll get this just in case,” don’t buy it! You’re wasting money, and I’m willing to bet that someday will never come.

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