No-spend challenges and skipping certain purchases to accumulate savings should seem like no-brainers, but for many people, these and other money-saving challenges are as effective as going to the gym every day for a year, which is to say, not much.
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Why do some people fail at money-saving challenges? Consumer and finance experts offered some suggestions.
Unrealistic Goals
If you’re still flying by the seat of your financial pants and struggling with discipline, a money challenge probably won’t teach you how to be smarter with money.
However, the biggest setback for many people is setting unrealistic goals that aren’t grounded in habits or steps that will actually work, according to Aaron Razon, a personal finance expert at Coupon Snake.
“[That] makes it difficult for the individual to gain satisfaction from their progress, and then stay consistent, milestone after milestone until the final goal is achieved,” Razon said. It can set people up for failure.
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No Instant Gratification
Money challenges don’t always provide instant gratification because they require “extended restraint before you feel the thrill of success,” according to Melanie Musson, a personal finance expert with Clearsurance.com.
Moreover, if life intervenes and you have to break the challenge or you simply haven’t adopted the discipline to follow through, this can create a negative cycle.
“You can lose motivation when your life doesn’t improve even after meeting a financial challenge,” Musson said.
Emotions Get in the Way
Generally speaking, motivation is often fueled by feelings, Musson said, so, “If you feel successful at savings efforts, you’re more likely to keep going. If you feel like you’re missing out on life, you will feel like giving up on your efforts.”
If you can merge facts and feelings to reach common goals, you’ll put yourself in a good position to attain success, she urged.
The Challenge Is a Fad
Another reason the money-saving challenge might not work for you is when the challenge is a fad with no real backing behind it.
People who fall for fad challenges are not foolish, however, they’re often in precarious situations, Razon pointed out. That can make them “willing to take advantage of any trend opportunity that helps them achieve the success they need.”
Habits Require Effort
Anyone who has ever tried to change their diet, exercise or other routines, knows that habits don’t change overnight; they’re ingrained behaviors forged over time. Razon pointed out, “We almost never ask ourselves why we want to [save], which sabotages savings effort.”
It’s also very easy to give over to impulsive spending and buying. Money challenges often don’t require a lot of strategizing or planning, which, Razon said, “makes it easier to lose sight of the goal because planning makes it easier to prioritize your goal.”
No Challenge Is One Size Fits All
Certain challenge formats are more prone to failure than others, “especially the ones that take a one-size -fits-all approach,” Razon pointed out.
Musson agreed. “All-or-nothing formats lead to failure. For example, if you say you’re not going to spend any money on eating out for three months, then you grab a breakfast sandwich, you failed. You basically set yourself up for failure with clean breaks.”
Saving challenges that fail to acknowledge the differences in an individual’s income, spending and financial responsibilities are not likely to succeed.
Unexpected Expenses Derail
Another more practical reason that money challenges fail is that life sometimes throws you a curveball that eats up your money. “Unexpected expenses can instantly derail months of savings,” Musson said.
This can be especially discouraging if you saw some progress and started planning how to use your savings, whether that was to take a trip or pay down debt, she said.
“Then you feel defeated and unmotivated to go through the savings process again.”
What To Do Instead
Instead of taking on a money-saving challenge, there are other things you can try to improve your finances.
Automate
Rather than a money challenge like “no spend November,” Sabino Vargas, a CFP and senior financial advisor at Vanguard, recommended automating savings instead.
“By automating your contributions, you’re taking the hard work out of the equation, as funds will be allocated to your respective accounts before you can feel tempted to spend it elsewhere,” he said. You can even set up automatic increases to gradually increase the amount you’re saving at a comfortable rate.
Partner With a Financial Advisor
Additionally, consider partnering with a financial advisor or accountant, Vargas suggested.
“Vanguard research found that 86% of people who have a financial advisor experience greater peace of mind. They tend to feel less financially stressed and have more time to focus on the things that matter than those navigating their finances alone.”
Adopt Financial Wellness
Lastly, take a mindset of financial wellness over money challenges, which Vargas likened to maintaining a healthy lifestyle.
“Instead of chasing quick fixes or reacting to money challenges, aim to build consistent, lifelong financial habits.”
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This article originally appeared on GOBankingRates.com: 7 Reasons You’re Failing at Money-Saving Challenges
