8 tragic excuses for not saving money (that must be overcome)

8 tragic excuses for not saving money (that must be overcome)

We’ve probably all heard about the importance of throwing away cash for big purchases or unexpected expenses. But how many of us actually have any savings to talk about? Better yet, how many of us can afford to increase our savings in the first place?

Finding even a dollar to spare can sometimes be tricky—so hard, in fact, that you’ve probably given up on saving altogether. Don `t give up. You deserve financial security. Take a look at some of the worst reasons why people don’t save, and you might even see yourself in them. There are also tips to learn how you can combat it.

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1. “I can’t save”

When you feel like your money is already exhausted, you may have a hard time finding money left to invest in savings. Likewise, you might think that a few dollars here and a few dollars there simply isn’t enough to make a difference.

Consider this, though: Do you have enough money to run your morning coffee or a weekly night out? When you add up these purchases, how much do you spend in a given year? What if you had saved that amount instead?

Times are tough, so cutting back may not be an option. If so, find potential new ways to make money. Whatever you do, resist the idea that saving is for the rich. Savings for all of us.

2. “I am young, so I can wait to start saving”

If you apply this logic to your savings strategy, you may be in for a rude awakening. Saving isn’t just about how much you save for retirement. It has immediate benefits, too.

Putting money aside now may be what makes the difference between being able to buy the home you love or settling into one you can afford. It can be what protects your money when your car breaks down, when your dog needs an emergency vet after devouring candy, or when your child hits a baseball out of a neighbor’s window.

Instead of viewing saving as a game for seniors, think of it as a way to build a barrier between your money and the terrible irony of fate.

3. “I’m too old, so there’s no point in starting saving now”

On the contrary, you may think that since you did not save in your youth, there is no point in starting now. Here’s the simple truth: It’s never too late to save money.

Today you may think it’s no longer worth the effort, but in five years or even the next year, you may look back and wish you had acted differently. There may come a day when you no longer have the desire or ability to work, and you do not want that day to come without financial support to sink into.

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4. “I get an inheritance, so I don’t need to save”

Even if your parents or grandparents were lucky and generous enough to leave money to you, it is still wise to save.

For starters, inheritance is not foolproof. Your relatives may face emergencies that deplete their financial reserves, or you yourself may pass what they gave you faster than expected. Moreover, what if you want to leave an inheritance for your children? If you don’t flex these savings muscles, there may not be any wealth to distribute.

Instead of banking on a big gift from your family, take matters into your own hands and work to secure your financial future. Then, whatever they give you will be icing on the proverbial cake.

5. “Savings accounts do not generate high returns.”

While it is true that some accounts have very low interest rates, many of the best savings accounts can give you a better annual return. We’ve also come a long way since the days of only one type of checking and one type of savings account.

Nowadays, you can find savings accounts designed to meet different goals or have different features. Plus, you don’t have to rely solely on a savings account. You could put some of your money into stocks or a Roth IRA, for example.

The point here is that you have choices when it comes to where you save. Don’t let old savings accounts hold you back.

6. “I will use my credit card or take out a loan if I need to.”

Can you use a credit card in an emergency? yes. Do many people recommend opening credit cards for this very reason? yes. Should the accumulation of consumer debt be your only safety net in the midst of sudden expenses? number.

Interest rates on credit cards and loans can make it very difficult to pay off what you owe. These interest rates also mean that you will pay more over time if you have balance from month to month.

Creating savings separate from credit cards or other forms of debt may give you some wiggle room in the event of a financial emergency. Without any savings, your options are more limited, and you risk a greater long-term impact on your financial health.

Pro tip: If you need to make a large purchase on a credit card, consider one of these three that will let you pause interest until around 2024.

7. “I want to buy XYZ before I start saving”

You want to enjoy your money, we get it. You worked hard to earn it, so you deserve to spend it. But ask yourself this question: How much would you enjoy this new designer bag if it were empty? It’s not a fun fact to think about, but it’s something to keep in mind nonetheless.

You should be able to treat yourself when you want to, but it’s wise to balance those rewards with regular contributions to your savings. In fact, you can use a large or frivolous purchase as an incentive to save more. For example, if you put $500 into savings this month, reward yourself with something decadent. Just make sure you don’t spend more than you can afford.

8. “I need to pay off my debts first.”

Along those lines, if you’ve already incurred large debts, you may feel that these balances take precedence over savings.

Think about what you would do, though, if your financial situation worsened — if you were hit with an anticipated expense, for example, or if you lost your job. Not only may you default on your regular bills, but you may also not be able to meet your debt obligations.

It will take some careful balancing, but try to put savings goals into your debt repayment plan. Think of your savings as your own form of debt insurance – it’s money you have ready so your debt doesn’t grow if you get bad luck.

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Now that you have a better idea of ​​what is stopping people from saving, take it a step further and learn how to save and how to invest in a way that suits your situation.

A quick way to get started is to review your most recent bank statements. Note where your money is going, and implement at least three strategies to reduce your spending. At the end of the month, transfer your new spare money to a separate account, and you’ll officially be in for savings.

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This article originally appeared on FinanceBuzz’s 8 Tragic Excuses for Not Saving Money.

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