If you live paycheck to paycheck and think you can't save money until you’re making a bigger salary, you might need to change the way you think. Money is reporting on a new survey from SunTrust that shows the secret to saving is more about mind-set rather than income. The survey found that one-third of respondents making over $75,000 per year live paycheck to paycheck. One-fourth of the respondents making over $100,000 annually also live paycheck to paycheck. Why can’t people save? “Fiscal discipline may be partly related to a lack of knowledge, but lack of willpower appears to be the largest culprit,” Money says. “Unsuccessful savings efforts fundamentally boil down to budgets. Either people aren’t making realistic budgets or they are choosing not to stick with them.” This lack of financial discipline is the real reason people are incapable of creating a savings system. Of those surveyed who have no savings, 68% said that expenses from dining out was the main reason for their lack of funds. The study is part of SunTrust’s efforts to get people to set positive financial goals. Instead of saving for a rainy day, they are encouraging people to say for a sunny day.
Learn more about how to increase your savings by reading the Live Richer Challenge.
Do you live paycheck to paycheck? Why don’t you save?