6 Habits That Kill Your Savings — Full Breakdown & Transcript

[00:02] circle. In this video, I'll be talking about the six habit preventing you from struggle with saving money and it is not because we're not trying hard enough but because we falling into some habit that

[00:14] [snorts] these are the everyday behaviors that might seem harmless but are actually major roadblocks on your path to financial freedom. So whether you are trying to build an emergency fund or save for a dream vacation or

[00:27] just want to see your bank account grow, understanding this habit is the first step to breaking them. So let's get into this financial habit that might be holding you back from reaching your saving goals. The first habit is not

[00:39] budgeting. Now the habit of not budgeting is a significant barrier to saving more money. Now, a budget is a financial plan that outlines your income and expenses, helping you to understand where your money is going and how much

[00:51] you can realistically save each month. Now, without a budget, it can be easy to spend recklessly, leaving little to no room for savings. And when you fail to budget, you may also lack a clear understanding of your financial

[01:03] situation, making it easier to overspend without realizing it. And this can lead to difficulty managing your finances. And by setting a realistic budget, you can consciously allocate funds for your savings and other necessary expenses.

[01:17] for each category can help you prioritize your savings. A budget also financial health. And if you want to really start budgeting your money, I have good news for you. Now, my team and I are currently building Groy. You can

[01:32] see it on my chest right here, Groy. And growing is basically an app that will allow you to track and monitor how you make money and how you spend your money every month. So with this app, you'll be able to consistently know how your money

[01:44] and be able to know where you are overspending your money. And later on, we also planning to introduce savings and investment to the app. So it is an app that will help you to make money, save money, invest money, and track your

[01:58] money the right way. But right now, Groy is not yet out as at the time of making this video. But if you're interested in what we are actually building, I would advise that you click the first link in the description of this video or check

[02:10] the link in the pinned comment of this video to join the weight list so I can be the first person to know when Grown app is ready and out. So please click on the link in the description below and support me on this new journey. Thank

[02:23] you. The second habit is impulse buying. Now impulse buying is a common habit saving more money. Now this habit consists of making unplanned spontaneous purchases usually without prior consideration. Now these purchases are

[02:38] often driven by emotional triggers such as stress, boredom or the desire for instant gratification and are typically not necessary or urgent. Now the problem with impulse buying is that it often leads to spending money on items that

[02:51] you don't need or that you don't plan to buy. For example, you might go to the store to buy a few items, but end up making additional purchases simply your eye. This has happened to me and has happened to almost everyone. Now,

[03:05] this unplanned purchases can quickly add up significantly depleting your finances and leaving you with less money to save. Now, to overcome the habit of imposed buying is important to develop self- discipline and conscious decision making

[03:18] strategies such as setting a budget for your spendings and making a shopping list and sticking to it. The third habit is not setting financial goals. Now the absence of clear and well- definfined financial goals often lead to a lack of

[03:32] motivation to save money. Now setting goals provides a specific reason to save and creates a tangible target to strive for. Now these goals could be anything that requires financial planning. Be it saving for a much desired vacation or

[03:45] purchasing a new car or building up an emergency fund to ensure financial security. Now, when you have a specific financial target in place, it can help to keep you focused and motivated to set money aside regularly. And the act of

[03:57] saving becomes less of a stress and more of a mission. And moreover, having a goal allows you to track and measure your progress, allowing you to celebrate your milestones along the way and creating a positive feedback that

[04:09] encourages further savings. Now without these goals, the act of saving can feel directionless. It can be easy to lose sight of why you are setting your money aside, making it more likely for you to spend it instead. So you see that the

[04:22] habit of not setting financial goals can significantly hinder your ability to save more money, preventing you from achieving a more robust financial status in the long run. The fourth habit is living beyond your means. Now living

[04:35] beyond your means is a common habit that prevents many people from saving money. This habit essentially involves consistently spending more than you earn and it is one of the most destructive financial habit as it can leave you with

[04:48] no surplus money to put aside into savings and it can take many forms. Now for some people it might be frequent and unnecessary spludging on luxury items or impulsive buying or even expensive experiences that are not aligned with

[05:02] their income level. And for others, it might involve using credit cards or loans to fund their lifestyle. Creating a cycle of debt that can be hard to escape from. And adjusting your lifestyle to fit within your income is a

[05:14] crucial part of overcoming this habit. This may involve making some difficult decisions such as cutting back on luxury items, dining out less and downsizing your living situation. However, these changes can help you to break the cycle

[05:27] of living beyond your means and start you on a path towards greater financial stability and the ability to save more money. The fifth habit is subscription overload. Now, the habit of subscription overload refers to maintaining multiple

[05:42] subscriptions often for products or services that are not utilized to their full extent. Now, this could include subscriptions for streaming platforms, gym memberships, magazines, apps, and more. Now the fees for each subscription

[05:55] may seem small when considered individually but they can add up Moreover, because these charges are often automated, it is easy to lose track of how much you are spending on these subscriptions every month and this

[06:09] can lead to unnecessary expenditure and hinder your ability to save more money. advise that you review and evaluate your subscriptions regularly. This is so important. You can consider canceling

[06:22] any service or subscription that you don't use frequently or that you don't derive sufficient value from. It is also beneficial to consolidate subscriptions where possible. For example, if multiple members of your household each have a

[06:35] subscription to the same streaming service, switching to a family plan can number five. But before I go to the last one or the last habit, don't forget to join our Telegram community and also subscribe to our weekly newsletter. So

[06:48] you can be the first to know whenever we drop new content on our YouTube channel. And don't forget to visit our website www.personalfinancecircle.com to read our various finance articles. The links to all of these will be in the

[07:01] habit that is preventing you from saving more money is eating out frequently. Now this habitage refers to the tendency of dining out at restaurants or ordering takeout more often than cooking at home. Now eating out can be expensive

[07:16] especially when done frequently. Now the cost of meals, drinks, and even transportation to and from the restaurant can quickly add up leaving you with less money available to save. And moreover, meals at restaurant are

[07:29] often priced as a significant price compared to the cost of ingredients used to prepare them. And as such, frequently eating out can make a substantial dent in your wallet, reducing the amount you can set aside for saving. And on the

[07:41] other hand, cooking at home is typically a more cost effective alternative. It allows you to plan your meals, control your portion sizes, and save you on the cost of meals. By reducing the frequency of dining out and opting to cook more

[07:54] meals at home, you can significantly cut down on food expenses and enhance your down on food expenses and enhance your ability to save more. So in conclusion, breaking these six habits is key to boosting your savings. Small changes in

[08:06] daily habits can lead to significant financial improvement. So start with one habit at a time and watch your savings grow. And if you found this video subscribe to our YouTube channel, and

[08:18] Before I go, let me tell you that being financially free isn't just about how much you save. It largely depends on how much money you make. And that is why I showing on your screen to learn the eight easiest ways to make money for

[08:33] yourself. Thank you for watching and I'll see you in that video. Bye.