Excuses are human nature. When we face something challenging or something we think we won’t enjoy, we make excuses to get out of them. It’s one of the facts of life. But making excuses for not saving money could cost you in the long run. Check out these 5 excuses we give for not saving money and see where you fall:
#1: “I Can’t Understand Finance”
Personal finance is not a Sudoku puzzle and it’s easier than finding that rare Pokémon from Pokémon Go. There are tons of resources available to assist you in your quest to understand and manage your finances. One of our personal favorite resources is “Personal Finance in Your 20s For Dummies”. Not only does this book address some common pitfalls in personal finance, but it also gives you need-to-know “personal finance definitions” and helpful steps to manage your money.
#2: “I Don’t Make Enough Money To Save!”
Truth is, everyone can save SOMETHING. Start small. Take a couple of dollars from each paycheck and place it into an interest-bearing savings account. Got any loose change? Put it into a jar and before you know it, you could easily have about $50 saved. You could also create a #sidehustle and generate some extra sources of income. Use that money to put into a savings account.
#3: “I Need To Pay Down Debt First”
This “excuse” is a tricky one, because we think that the first step to becoming debt-free is to spend all of our money paying down our debts. This is not entirely true, as it is possible (and suggested) to allocate funds for both a savings account and a “get-out-of-debt” account. Take a look at this US News article on “5 Questions to Help You Decide Whether to Save or Pay Off Debt”.
#4: “I Can Save Later”
Why put off tomorrow what you can get done today? The earlier you start saving, the more you’ll have in the end. Not all interest is bad for you—in fact, compound interest allows you to “reinvest” what you’ve “put out” and the more time you give yourself, the larger your return will be. Here’s a Compound Interest Calculator for you to play with and see for yourself.
#5: “I Can’t Buy What I Want If I Save”
If you pay yourself first, you can use what’s left to purchase things you like. Of course, you would do yourself a huge favor in identifying your “wants” and “needs”, but saving money does not have to feel like a hostage situation. In fact, think of saving money as a means to prepare for that all-inclusive vacation you want to take this summer, or to purchase that car or home you’ve been dreaming of.