5 Reasons You Can't Save Money

Most people know how to spend money but learning how to save money is an entirely different story. The Federal Reserve puts the personal saving rate at just 4.6% of disposable income, as of April 2025. While the overall saving rate has improved in the post-recession area, Americans, for the most part, still are not putting away nearly enough dough. A 2025 survey shows that 14% of respondents anticipate that they will need to withdraw from their savings this year. Almost a quarter plan to add just $500 and $1,000 to their accounts, the smallest of surveyed balance tiers. If you have been trying to develop your saving muscle but have not had much success, these common money blunders may be the reason why.

If you’re falling behind on your savings goals, a financial advisor can help you create a plan to set and reach news ones.

1. Working Without a Budget

Without a budget, it’s easy to lose track of where your money goes. You might plan to save, but by the end of the month, there’s nothing left. Not knowing your exact expenses makes it hard to stay in control, and your savings goals often get pushed aside.

Solution: Creating a budget helps you manage your money more clearly. By tracking your spending and including any debt, you can see what you need to cover and how much you can save. A budget helps you decide where every dollar should go so you don’t come up short.

2. Failing to Set Goals

Without a clear savings goal, it’s easy to lose focus and spend money on other things. If you don’t know how much you need or what you’re saving for, your money may end up going toward short-term wants instead of long-term needs.

Solution: Think about what you’re saving for and how much you’ll need. Being specific helps you stay on track and make a plan. Start small—even a few hundred dollars can help in an emergency. Then, work toward building a larger emergency fund that can cover several months of expenses in case something unexpected happens. A savings calculator can help you see how your efforts will grow your money so you can reach your goal.

3. Not Preparing for the Unexpected

Life happens, and everyone experiences their share of financial setbacks at some point. Maybe your car breaks down or the refrigerator goes out. Suddenly, you have to cover an extra expense of several hundred or even several thousand dollars. The money that you were planning to put in your savings account suddenly gets swallowed up by something else, or worse, you end up charging it to a credit card.

Solution: Starting with a small emergency fund gives you a safety net for surprise costs. Even a few hundred dollars can help you avoid debt when something comes up. Over time, you can build that fund to cover three to nine months of expenses, which can protect you during bigger setbacks like job loss or a medical emergency.

4. Staying in Debt

Saving money while still in debt can feel like progress, but it often works against you. If you’re earning a small amount of interest on your savings but paying much more on credit card or loan interest, you’re losing money overall. While it’s smart to have a small emergency fund for unexpected costs, holding onto extra savings while carrying high-interest debt keeps you financially stuck.

Solution: To move forward, build a basic emergency fund, then focus on paying off debt with a clear plan. You can start by paying off the smallest balances first (the snowball method) or the debts with the highest interest rates (the avalanche method). Either approach works as long as you stay consistent. Once your debt is gone, you’ll have more room in your budget to grow your savings faster.

5. Making Excuses Not to Save Money

It’s easy to make excuses about why you can’t save money. My parents never taught me about money. I’m just no good with numbers. I don’t make enough to save money. These are just a few of the mental roadblocks you might be putting in the way of your path to saving. Until you defeat these bad money attitudes, you’ll find it difficult to really get serious about becoming a saver. Changing how you view money may not happen overnight but the more work you’re willing to put into it the bigger the pay off will be.

Solution: Changing how you think about saving starts with letting go of excuses and focusing on what you can control. Whether it’s learning basic money skills, setting small goals, or shifting your mindset from “I can’t” to “I’ll try,” every step helps. You don’t need to be perfect with money—you just need to be consistent and open to building better habits over time. An interest-earning savings account can accelerate the process.

Bottom Line

Saving money should not be an elusive goal. Unless your income is extremely tight, you probably have enough room in your budget to sock away at least a few dollars on a regular basis. Even if you start small, you are building the foundation for a solid financial future. An interest-earning savings account can accelerate the process. Consider also working with a financial advisor who can help you determine how best to set up your savings to meet your long-term financial goals.

Tips for Financial Planning

A financial advisor can help you create a financial plan for different goals and needs. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you want to build your savings up consistently, consider setting up automatic transfers from your checking to your savings accounts. This approach could help you make saving a routine part of your financial life.
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