What is the biggest obstacle to saving and investing money?

What is the biggest obstacle to saving and investing money?

In today’s world, it is hard to save money. People are often facing different obstacles that prevent them from successful saving. What are they? We will tell you about the biggest hindrances you may face and will teach you how to deal with them. You will learn how to save and invest money successfully.

obstacle to saving and investing money

the biggest obstacle to saving and investing money

The obstacles on saving money

Holding money

Why is it so hard to save money? We all know that it’s good for us, it is an investment for our future, but still, it is difficult. There are two theories:

Forgetting about risks

There will be no bad day

Usually, people don’t think about bad days when they have good days. The same is with money - we tend to act like the money will be there forever and the rainy day will never come. But when you are in debt or just need some extra money - then you think that you should have saved that money instead of wasting it on a new gadget, for example.

Money psychology

Problem with savings

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It’s a very common problem. People spend more money if they know that they will receive more money. For example, your boss raised your wage. Now you have a feeling that you have enough money to spend. But eventually you will spend too much and you have nothing left.

The main reason why it happens is that people don’t have clear goals in their life. It is important to set a goal in order to save money. Save money not for “a bad day” or “in case I will need it in the future”. Try to think about it as a future purchase or a simple goal. For example “I will save my money in order to buy a new car in the future.” Or “I want to save money in order to feel secure”.

Worried about future

A clear financial strategy will make your life easier. Make a list of things you want to buy or you want to do in the future and put it in a visible area in your house. Like on the fridge in your kitchen. Thus you will see it everyday and it will be easier to remind yourself why you should save money.

You can even take a jar and glue a paper on it with “For my Journey” sign and put a few amount in it every day. It is not a lot for one day but will pay you in the long run. However, it’s better to use more “modern” types of saving which we will discuss later.

Obstacles on saving money

Let us say that you have your clear goals, know what you want but it is still hard for you to save money. You may face different obstacles everyday but here are four most common ones.

Lack of Financial Education

Financial education

You don’t need to have a degree in Financial Education, but knowing the basics is essential. Money management is always relevant, no matter how old you are. You need to know about interest rates function, how to manage your budget, how credit cards work. There are tons of information on the internet! You should have basic knowledge about spending, borrowing, earning, saving, investing and protecting your finances.

How to change your bad habit: Learn about finances and the economy. Educate yourself in order to have a better future. It is up to you to become smarter regarding financial education. You need to understand that once you fail to save, it may lead you to financial troubles that will impact the quality of your life.

Forgetting about discipline

Girl with a cupcake

No doubt, it may be hard to control yourself. For example, some people struggle everyday in order to exercise regularly or to engage themselves in self-development. Building up savings is also an everyday struggle and a matter of discipline. The difference is that when you don’t stick to a diet or don’t do your exercise - you will gain weight. When you don’t save money - it may lead to bankruptcy in the future and will have a significant impact in your life in the long run.

It is very easy to spend but extremely hard to save. It is a habit that you should develop everyday.

How to change your bad habit: If you see that you can’t save money and you are eager to spend every penny then put your saving on an auto-pilot. Just set up an automatic transfer from your account to your savings. You can send some Naira from every payment.

You will surely forget about that little amount you are sending every month, but when you open your saving account, you will be pleasantly surprised. It is also a good idea to send off any additional money that you may get during the year to your savings such as work bonus, tax refund or birthday money. Then you will get more savings for your future.

Overspending all the time


As we mentioned before, people tend to overspend when they feel like they have enough money. If you see that you run out of money long before or just by the payday, then you might have a problem with overspending. Also, you may have problems with overspending if shopping makes you feel better. In this case, you are usually buying more than you need.

How to change your bad habit: Find an app that will control your everyday expenses. At the end of the month, you will see where all the money goes. Set up a budget and stick to it.

If you are spending money to feel better, then find a hobby for yourself or spend time with people you love in order to control your emotions. However, if you think you have a spending addiction then consider visiting a specialist.


Debt and problems

Having debt is the worst enemy of saving. Usually, you spend all your savings paying the debt and you have nothing left. Having more bill now and then is emotionally challenging and it’s s hard to save money. Sometimes people even borrow money in order to get rid of the debts.

How to change your bad habit: Before spending all your savings on the debt, try to cut back on your expenses. You don’t have to spend all your savings on your debt. There are ways to take out additional expenses from your savings account. If you are still having problems then consider getting counseling.

On what NOT TO save

Some people can’t save, other save too much. There are some areas that require money. Do not save money on the following:



Under no circumstances should you save on your health. If you need expensive medicine and it’s only one in a kind then buy it. It’s proven that when you are saving on your health, you are paying a few times more in the future.

Personal care

Personal care

The same as with health - you will pay more in the future if you save now. Everything that you put on your body should be high quality.



If you want to engage yourself in self-development, then consider saving on something else. For example instead of buying a new dress, purchase a few great books.

Saving tips


There are some small tips that will help you save money every day:

- Eat before going to the supermarket. It’s proven that when you are hungry, you will buy more. Also, make a shopping list and stick to it.

- Don’t buy anything on the day of your payment. You will spend more when you have more money - as we said before, it is quite easy to spend because you feel rich and usually forget about savings.

- Try to buy using cash. It’s harder to spend more money when you are using cash because you see the amount of money you have. When you are using a card, it’s easier spend money like water.

- Turn off the lights and save water. It won’t change anything today but will pay off in your future bill!



Saving is absolutely a great thing, but investing will bring you more money in the future. As they say “your money should work for you!”. There are different types of investments that you should consider:

- Hedge funds;

- Business;

- Shares;

- Obligations;

- Bank deposits;

Bank deposit

- Gold and precious metals;

- Property and buildings

- Forex.

Choose whatever suits you best and don’t let the money to be “dead weight”.

Saving money can be difficult but it's sure worth it and it is possible. Now you know how to save money, what to avoid and also different types of investments that will bring you money in the future. Remember - saving is not a race, it’s a marathon. Think about your financial future every day and you will surely achieve all your goals.

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Source: Naija.ng

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