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Finances: Expectations vs. Reality

September 18, 2022
4 Min Read

Introduction: Finances: Expectations vs. Reality

Finances: Expectations vs. Reality – Are you ready for a financial challenge? If so, then we’ve got just the thing: saving money. Saving money can be hard, and it’s easy to get disappointed when reality doesn’t match your expectations. Here are some of the most common ways people have been let down by their finances:

Expectation: You’re going to save $1000 a month.

  • You’re going to save $1000 a month.
  • The amount of money you should be saving each month is based on your income, including any additional sources of income such as investments and benefits from an employer or spouse. For example, if you make $3500 per month with no other source of income and want to save for a rainy day in case something goes wrong (e.g., losing your job), then it’s recommended that you put away around 10% (or $350) into an emergency fund each month.*
  • It’s important that people have savings accounts because they can help cover unexpected expenses like car repairs or medical bills without having them worry about how they’ll pay their bills until after they’ve received their next paycheck.* You might also consider setting aside some extra cash every week so there will always be enough money available even if something goes wrong at work; this way there won’t be any late fees applied against those funds either!

Reality: You actually save about $300 a month

It’s often the case that your savings actually end up being less than you think.

  • The reality of saving money is often less than what you expect.
  • The reality of saving money is often less than what you need to save.
  • The reality of saving money is often less than what you want to save, too!

Expectation: The vacation will cost $5,000, but you’ll get some discounts or group rates if you go with friends or family.

A vacation is a time to relax and enjoy life. But with the cost of travel, hotels, food and entertainment, there are many ways to save money on your next trip.

The first step is knowing what you can expect from your vacation plans before you begin planning them. Do you want to stay in an expensive hotel or rent an apartment? Are there any discounts available for couples or families traveling together? If so, how much can they lower the cost of their stay by booking as part of a group?

If not (or if it’s not important), then consider other ways that could help bring down costs:

  • Use free sites like Travelocity or Hotels Combined$$$

Reality: The vacation actually costs $6,000, so you have to dip into your savings.

You were expecting a two-week vacation, but reality says you can have a great time on just one week.

The good news is that this is an opportunity to adjust your expectations. Instead of taking a trip around the world and being sad when it’s over, why not take advantage of what’s available in your life right now? You don’t need to save up for months or years before going on vacation; instead, work with what you have and make it work!

If you feel like something isn’t working out as planned (i.e., “it would be nice if I had more money”), ask yourself: Why? What am I doing wrong? Is there anything else I could try instead?

Saving money is hard, and you may need to adjust your plans.

Saving money is hard, and you may need to adjust your plans.

If you’re like most people and don’t have much of a problem saving money on a regular basis—for example, by cutting back on eating out or buying generic products instead of name brands—then this section will be easy for you. But if saving comes more easily when it’s time for vacation planning or other big-ticket items (like buying an engagement ring), then this section might be helpful if:

  • You want to save even more than usual but feel like there’s no way that could happen because those things are too expensive now;
  • You’ve already tried all the tips in previous sections but still aren’t able to achieve them consistently enough; or
  • Your budget has changed since last year and now makes it difficult for any savings plan based on last year’s budget

Conclusion

You’re going to have to change your expectations. You might need to make some adjustments in your spending habits, or find a way to save more money. If you think it’s possible, then go for it! We all deserve vacations and other fun things in life—but not at any cost.

 

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