Top Three Worst Excuses for Not Saving
Everyone knows saving money is one of the most crucial ways to build a stronger financial profile and safeguard your future, and you won’t find a person in the world who disagrees. So when it comes to a universally recognized rule for financial success, why are so many people so far behind in the savings game? In most cases, an empty savings account comes down to one simple cause: excuses.
Realizing that you are responsible for your own savings woes can be a harsh reality that many don’t want to recognize. But it can also be liberating because it allows you to consider the reasons that are holding you back from saving, invalidate them and get a savings plan into motion.
Below are the most common excuses for not saving money – and the truths behind them.
1. “I can’t afford to save money”
Unless you’re a self-made millionaire or heir to a small fortune, saving can be difficult, but not impossible. Saving money takes work, and it can be discouraging to live paycheck-to-paycheck and watch your minimal savings grow at a snail’s pace. Over time, however, putting something away each pay period – even if it’s only $50 – adds up over time and provides you with a cash cushion. Remember that saving money is a lifelong process and as long as you stay consistent, your efforts will pay off.
2. “I have too much debt to save money”
Managing debt and savings at the same time can be one of the most challenging scenarios you will face. However, neglecting one for the other will not make you better off in the end. Instead, consider staggering your debt and savings to ensure both are getting equal attention. You can also cut down on other luxuries to free up more income for savings.
3. “I have to attend a wedding, re-decorate my apartment, replace my wardrobe, etc”
One of the most common reasons many people fail to save is because they spend discretionary income on items they think they need. Consider reviewing your bank and credit card statements for the last several months to add up unnecessary purchases. This may alert you to areas where you overspend each month. To avoid this habit, transfer a percentage of your paycheck to your savings immediately upon getting paid and forget about it. Waiting until your other needs are met before you pay yourself can cause you to give into temptation rather than putting that money into savings.