GETTING INTO A regular saving routine can be a challenge. There are often simple obstacles that you need to overcome before the path becomes free and easy. And those hurdles are faced by almost all of us. The good news is it doesn’t need to be daunting. Spoiler: there are quick and simple ways to help get into the habit. Read on to find out the most common reasons why you might be finding it hard to save – I bet they will all sound familiar.

‘Live For Today’ Spending

There’s no two ways about it, the cost of living crisis is continuing to impact Irish people’s ability to save, especially amongst 35-64 year olds. The financial pressure that many are facing is restrictive, with this demographic focusing on keeping their heads above water.

With childcare costs and managing mortgages, money often goes out faster than it comes in, and savings can become a low priority for families. For those reaching midlife a desire to upgrade their lifestyle can come into play as their income increases. Despite higher earnings, savings can stagnate due to constant expenses and obligations. Not to mention the struggle of some people who have been forced into the “sandwich generation” – who are often financially supporting both children and elderly relatives, and as a result, saving can quickly fall down the priority list.

For younger adults aged 18-30 years, lower salaries and student loans are impacting expenditure which is realistically mostly going towards rent and travel. The level of financial insecurity and the constant pull on income means most of us experience a ‘live for today’ spending attitude – one that is in direct conflict with saving.

(Scarcity) Mindset

But it’s not just present responsibilities and future aspirations that pull on our purse strings: Past experiences and childhood memories hugely shape adult financial behaviour. Research carried out by B&A on behalf of AIB found that people who grew up in households where money was tight may develop a scarcity mindset, always feeling like there’s never enough. This common occurrence can lead to either fear-based saving through the hoarding of money, or the opposite with impulsive spending. Both of these attitudes are counter to healthy savings habits and can be quite unsustainable in general.

We also have to contend with the politics (or should we say etiquette) around money. If in your household it was seen as private, taboo, or even crass to discuss it, the secrecy created can leave children growing up uninformed, unprepared and untrained in the art of saving.

Inertia Due to Emotional Burnout

Surprisingly the main antagonist to saving isn’t overspending, it’s simply not saving. The research also found that inertia to regular, structured saving is probably the most common obstacle these days. This happens for a variety of reasons, all of them psychological. People often attach emotions to money – shame from feeling like you should’ve saved more by now, guilt about spending on yourself when others are struggling, fear of the pressure of looking after the finances, and pride which shows up as refusing help or financial advice because we should know how already. This weight of emotions really is more of a hindrance and takes up a huge amount of headspace that could be used for more useful strategies.

It’s no surprise then that some people will tend to prioritise short-term enjoyment over long term planning. It’s understandable to look for this instant gratification instead of saving, when there feels like so many hurdles to overcome.

Lack of Support

Lots of people struggle to know where to start when it comes to saving and what ‘good’ looks like. There is also widespread misunderstanding of savings options and the features and rates available in the market right now.

Perhaps you’ve started to save but it’s not regular and there’s no clear path towards a goal. Saving can sometimes feel like a rollercoaster: sometimes it’s going great, but then suddenly it loses momentum. That’s why having a structured plan – and the right support can make all the difference. At AIB, building better saving habits is a priority.

From start to finish AIB advisors offer guidance and structure to saving with both in-app and in-branch support for setting up an account. If you need help you can visit a branch and speak to a savings advisor for advice.  

Start overcoming your savings obstacles today – drop into your local AIB branch or visit AIB.ie to learn more.

Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland