Making money is hard. Keeping it is harder. No matter how much it's drilled into our brains to save, save, save, the income we earn seems to flow into our bank accounts just as quickly as it flows out. The fact is, about 40% percent of Americans who earn over $100,000 a year can't seem to save, according to a GoBankingRates survey. Sure it's important to save for emergencies, but the goal is to have enough to invest, so that we earn much more and work much less—maybe even not at all. It sounds great, in theory. So why is the struggle to save so real?
Our brains could be to blame
Really. A team of neuroscientists at Cornell University found that 90 percent of participants in their study chose to earn more than they save. Because the emphasis on making money seems like an effort all its own, when it comes time to put the money into a savings plan, we're spent, if you excuse the pun. "It's rational from the brain's perspective: You must earn before you can save," Adam K. Anderson, associate professor at Cornell University's College of Human Ecology and co-author of the report, tells CNBC. "It could partly be cultural," he says. "We brag about work ethic and earnings, but we don't talk about coming up with a cool savings plan."
Our goals are too abstract or long-term
The other issue is that earning money provides an immediate reward, while saving that money is only rewarding in the abstract and hinges on future plans—buying a house, retiring—which may feel like pipe dreams when you're scraping to save.
One thing you can do is set up mini-milestones that feel actually feasible in the short-term—think buying a new appliance, taking a vacation or redoing your closet. Saving enough to reach smaller, more accessible goals gets you in the habit of saving period. And that's a whole lot better than not saving at all.
We have instant access to shiny things
It's not just you. 79 percent of Americans shop on their phones or laptops, with 15% buying stuff online on a weekly basis, according to a recent Pew Research study. When you can purchase anything with the click of a button, you're less likely to feel the immediate impact of your purchase on your bank account.
Social media makes our shopping impulses even harder to turn off. Between Facebook ads and Instagram influencers, we're bombarded with dangling carrots we think we need in the moment.
"We are socially comparative creatures by nature," psychologist and author Nancy Irwin tells MarketWatch. "[People] feel inferior if someone they know has a shinier or bigger toy than they do."
One thing to do is delete your auto-saved credit card from e-commerce sites you frequent so that it's harder to shop instantly. You might consider taking a break from Paypal, ApplePay and other insta-payment sites so that you're forced to manually enter your information before you shop. That lag time could make all the difference.
All those subscription services are killing us
Technology doesn't just suck you into one-time purchases, but monthly subscriptions as well. So all those creature comforts like Netflix and Spotify that we've come to rely on add up to more bills we often forget about. "Our issue is we're spending before we even save and then never look back," Brandon Hayes, a financial planner, tells MarketWatch. "With a cashless society, it's tough to appreciate a dollar when you never see one."
Creating a monthly budget and reading your credit card statements closely will both help you eyeball your spending habits and weigh your options about subscription services that may not be worth it to you in the long run.
We never know when the next paycheck is coming
In a gig economy with over 53 million freelancers, it's hard to feel entirely confident when and from where your next paycheck is coming. That makes signing up for an automatic savings plan seem riskier than it might be if you had a steady, unfluctuating income. One thing to consider is a no-fee online savings account you can dip into when needed.
You can set up micro-auto-payments just to get into the habit of socking money away and up the number as your workflow builds. There are also micro-saving tools that allow you to transfer as little as $1 from your account—as much as a cup of coffee. Setting up daily auto transfers of a buck may seem like petty cash at first but it adds up over time.
We just can't afford to
Between credit card debt, student loans, the rising costs of rent and bare necessities, 65% of us aren't saving a penny—and our biggest problem is our expenses. The best thing to do is to create a budget.
There are some easy-to-use online budgeting tools that make the task much less daunting. This will help you figure out how much is going in and out of your account, and ultimately where you can cut the fat so that you have a little bit leftover to sock away.
The whole thing gives us anxietyIn a world with too many options, even when it comes to choosing a savings plan, where do you start? The good news: technology is not totally the enemy. There are plenty of online resources that have done the work for you. Here's a breakdown different types of savings plan to decide which one is right for you. And here are some questions to ask yourself before you dive in head first. A little research will give you the confidence to hone in on your own research and set up an account that makes the most sense for your situation.
Airbnb offers an affordable option for people looking to be more comfortable as they travel.
However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.
And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.
If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.
Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."
just setting up my twttr— jack (@jack)1142974214.0
The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.