Why Most People Fail at Saving Money

Updated: August 24, 2023

Ask anyone if it’s important to save money, and everyone would say “Yes.” But ask them again if they actually have savings, and I’m certain only a few would have one.

It is a challenge to save money, especially for people who are barely making ends meet. However, most of those I’ve met who don’t have savings are actually earning more than enough.

What’s the reason why they can’t save? And why do most people fail at saving money?

There are many factors. A few are beyond our control, such as scarcity of jobs that offer adequate income or suddenly having to care for a sick family member.

However, most of the other factors why people can’t save are internal. Such as a lack of self-control over impulsive buying or having no discipline to follow a budget.

Interestingly, a lot of them know that the reasons why they can’t save are these bad financial habits. They will even admit to trying to change for the better at some point but then eventually fail.

If you’re one of them, then how can you succeed at replacing these bad money habits with good ones? How can you turn your financial situation around and transform from being a spender to a saver?

I believe the answer is by being more intentional and consciously sticking to the saving habit.

The Honeymoon Period

Whenever you start something new in your life, there will always be a “honeymoon period” when you feel inspired and motivated. A time when you feel excited about your decision to change.

Some would even share their good news with their friends or announce it on social media.

“I just enrolled in dance classes. I’m so excited!”

“I’m starting my diet tomorrow. I’m looking forward to losing weight soon.”

“This is it! I’m going to start saving beginning this payday.”

You’ll get positive reactions and a lot of encouragement from friends, and that’s often more than enough to motivate you for a few weeks.

However, regardless if it’s starting a new hobby, changing to a healthier lifestyle, building your savings, or any other challenging pursuit — everyone will eventually hit a slump.

You’ll have difficulty learning the new dance routines. You start to experience mood swings from your new diet. An unexpected expense suddenly comes, totally ruining your budget.

When the honeymoon period ends, the real battle for change begins.

Stick with it, and don’t quit.

When it comes to saving and having control over your personal spending, it’s important to understand that smart financial habits cannot be learned overnight.

And when things become rough and more difficult, when your willpower is slowly being depleted, and you’re at the brink of quitting — just remember to stick with it.

Take steps forward, no matter how small. You can choose to save a lesser amount, but at least you saved. Because during this time of struggle, any small win is still a win.

And don’t fret if you fail once in a while. It is normal.

Forgive yourself for impulsively buying something, for spending a portion of your savings, or maybe for procrastinating on fixing your budget this month.

These things happen. Just admit to your mistake and immediately get back to pursuing your goal. Don’t just give up and quit.

It could take a few weeks to several months, but it will eventually happen. You’ll be able to break out of your slump.

And before you know it, you’ll see that your savings have already grown significantly without notice. And saving money has actually become a habit that you do with little conscious effort anymore.

The key really is having the patience and determination to stick with it, even if and especially when it becomes hard.

Changing bad financial habits can be very hard. Resisting the temptation to spend can be very hard. Following a budget can be very hard.

However, not having enough money for financial emergencies is also very hard. Experiencing stress and anxiety when you’re deep in debt is also very hard. Giving up on your goals and dreams in life because you cannot afford them is also very hard.

Choose which “hard” you want in life.

I chose the first one to struggle now so I can be comfortable later. And that’s why I chose to just have to keep going, to stick with it, and not quit.

That’s how I succeeded, and that’s how you can also succeed at saving money.

What to do next: Click here to start your financial journey with IMG Wealth Academy


  1. Hi Sir Fitz!

    This post is in perfect timing to remind me about saving. I have had a major set back a couple of weeks ago and it is still inflicting damage on me. Thank you for the reminder!

    Btw, I think you have a typo error in the heading The Honymoon Period.

  2. I have to ask myself, “man, are you doing this right? Every time there is spare cash and I plan to segregate it for emergency/everyday savings, investment opportunities presents themselves. No bank account, no CD, no time deposit will ever come close to what our capital earns from our business. Some of these investments through off daily cash, some weekly and some receive returns every month. I tell myself that most any day to day emergency that could happen would easily be covered by the regular returns from our local businesses . There is also my investment accounts where we hold a basket of stocks, ETFs and sell options for income. I do keep significant cash in the account to seize opportunities that show up in the markets. Still, the question remains, do I need additional savings here in the Philippines. It take two business days to complete a transfer should a large need come up. I really do NOT like to see money sit idle doing nothing and earning nothing.

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