The Honest Truth About Why We're Bad at Saving (And How to Actually Fix It)

Can we be honest for a second?

Every time someone tells me to 'just save more,' I want to ask them if they have ever actually tried to save money when you don't have very much of it to begin with. Because it sounds extremely simple from the outside and it is genuinely difficult from the inside.

And here's the thing — it's not a willpower problem. It's a brain problem. And once you understand why, fixing it actually becomes possible.

Why our brains are terrible at saving

Your brain is wired to value things you can have right now much more than things you could have in the future. Psychologists call this 'present bias.' It's why a Rs 200 snack right now feels more satisfying than Rs 200 in your savings account next year — even though future-you would obviously prefer the latter.

This was actually useful for our ancestors. When food was scarce and survival was uncertain, grabbing what was available now made sense. But in 2025, with bank accounts and SIPs and compound interest, it's working against us.

Add to this: we're surrounded by systems designed to make us spend. One-click buying. Infinite scroll. Flash sales with countdown timers. Buy-now-pay-later. Every one of these is specifically designed to overcome your brain's natural hesitation and get you to part with money before you have time to think clearly.

So it's not that you lack discipline. It's that you're a human brain up against billion-dollar systems engineered to beat you. That's actually kind of a big deal.

The only saving system that actually works

Save first. Spend what's left. Full stop.

Not: spend throughout the month and save what's left over. That leaves nothing. Every time.

The moment any money reaches you — pocket money, birthday gift, tutoring earnings, whatever — the very first thing you do is set aside a portion. Before chai, before Netflix subscription, before anything.

How much? Whatever you can actually do without. Not what sounds impressive. Not what a finance article says you should save. What you can genuinely commit to, every single time, without it becoming a sacrifice that breaks you.

For some people that's 50%. For some it's 10%. For some it's literally Rs 50 from every Rs 200 they receive. The percentage matters less than the consistency.

Make it automatic so your brain doesn't get a vote

Here is the most important hack in all of personal finance: automate your savings so that the decision is made before you can talk yourself out of it.

If you have a bank account, set up a standing instruction to transfer a fixed amount to your savings on the same day your money arrives. Every month. Automatically. Your brain never gets involved because by the time you check your balance, it's already done.

If you don't have a bank account yet, use the physical envelope method. When money arrives, immediately put the saving portion in a separate envelope or box that you don't touch. Out of sight, out of reach, out of mind — until you actually need it.

The goal is to make spending your savings harder than not spending it. Friction is your friend here.

What to save toward

Saving into a vague 'for the future' pot is harder than saving toward a specific goal. Your brain responds better to concrete targets.

Name your savings goals. A course you want to do. Something you want to buy. An emergency fund so that a broken phone doesn't become a crisis. Even: my first investment when I turn 18. Having a name on the money makes it feel less abstract and more worth protecting.

The rule about spending that nobody gives us

Not all spending is equal. Spending money on experiences, learning, tools for your actual goals, and things that genuinely improve your life is very different from spending money on things that feel good for five minutes and then sit forgotten.

The useful question before any non-essential purchase is not 'can I afford this?' It's 'will I be glad I bought this in a month?' If the answer is genuinely yes — buy it without guilt. If there's any hesitation — wait 48 hours and see if you still want it. Most impulse purchases don't survive 48 hours.

How much of your money have you been spending on things you forgot about within a week? No judgment. We've all done it. Tell us in the comments — we're building a resource of real answers from real girls.

— Anaya Deshmukh, Daughters of India