WiseBread had a good article about excuses for NOT saving money, check it out.
I'm not the greatest saver, mainly because I have student loans and other things that I'm paying for (house, car, and other things in my budget), but I do save. Once I'm done with my car payment and student loans, then I will start saving more (and living life).
Here are common reasons that people say:
- “I don't make enough to save.” If you honestly don't have ANY money left over to save, then saving might actually be impossible (especially in this economy). However, there are often many things that you can cut, and you should be trying to live according to the salary that you make, and not the salary that you think or wish you should be making.
- “Interest rates are too low anyways.” I've heard many people say this. Just because rates are low, it doesn't mean that you should spend all of your money. I never understand people who say this!
- “I have too much debt.” It's good to pay off your debt, but you should make sure that you at least have a comfortable emergency fund, just in case anything does happen.
- Compare your interest rates for saving versus your debt, in order to maximize your value.
- For example, I know someone who has a student loan of around 2%, so they are deferring it and using their money in other places (such as saving and the stock market) where they think they will be able to get a better return.
- “I'll catch up and save faster once I have a bigger salary.” A lot of people say this. But the truth is, is that for most people, when you make a bigger salary then you just end up spending more and adjusting to that new salary.
- I'm not saying all people are like this, but I know many who are. So then you eventually will just KEEP on saying this and never end up saving enough.
- Also, the time value of money in this situation can make a big difference. Saving earlier most often pays off better.
What are your excuses for not saving?
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I think my excuse is student loans and saving for a new car which I desperately need. And also my husband and I have been setting aside money each month for our honeymoon fund. Hopefully once that is over we will be able to really start saving. I thin this is one of the reasons why I stress financially. I'm always worried I'm not saving enough for the future. Definitely something I want to start working on. As always, great post 🙂
My excuse is #3'ish. After I'm done paying for all I have to pay (and then some I shouldnt have to pay), my leftover is marginal. Excellent post! I agree that #4 is a deception. A very good one, but rarely true.
Honestly, sometimes we just say that we have to live a little. Then again, we do save. And IMO you can become so focused on savings that it takes over too many aspects of your life. Then again, we're not over our heads in debt…Automatic deductions are a wonderful thing!
None:) I save and pay myself first and then whatever is left over is for play time.
I had to adjust my thinking about saving money, especially with #1. Interest rates are low but saving money isn't about MAKING money. It's just for that SAVING. If I want to make money I should INVEST. So the interest rates are an obsolete fact.
I've always saved. It's a sickness, really : P even now that my husband is not working, I still try to squeeze $500 into our savings. we don't always do it, but we try.
I agree with @Carrie saving money isn't about making money, it's for saving.I made an emergency fund, one that will cover a month or two of bills. So, there is a little bit of stress relief, but I'm working really hard to pay off debt. Then I will save a lot more.Great post!
I'm with Alex….we've been yanking money out of Hubs pay for almost 27 years, automatically before we see it NO MATTER WHAT into a company matched fund.We don't see it=we can't spend it. That doesn't mean we don't save a portion of our income besides that, but even when we have no extra money at the end of the month, we have saved something.It goes a long way to easing my mind over the day to day finaces.
I use to think like this, until I was sick and tired of of not having any money. Which means resulting to using my credit card. Saving is all in moderation. I took baby steps with it starting with smaller denomination then went from there.
About that 1st point, I think it's crazy that most people live beyond their means, spending more than they earn. Some people live only spending what they earn, but that so few people seem to live below their means, choosing to spend far less than they earn. My husband and I live well, spending far less than we earn, and we are not 'high earners' it's just a lifestyle choice, it takes time and planning and strategy but its not difficult, especially with so many supportive and encouraging resources out there (like this blog!) xx
thanks for the tip! let me know how your wreath turns out.somethingus.blogspot.com
I have no savings fund. I really want to have an emergency fund for extra peice of mind.I really enjoyed this post & reading all the comments. Lots of wise people with good money ways xx
I've definitely scaled back my savings in order to pay off higher interest debt from my student loans, but I still invest the max to my Roth and contribute to my 403b. I went through a phase in life where I shirked all financial responsibility including saving, but I'm very happy to be through and well past that now! Do you mind updating your link to my blog with http://www.thehappyhomeowner.net/ ?? I've moved to my own domain!!! 🙂
Great tips everyone. I'm still trying to build up my EF, but it's starting to get hard. I'd rather pay off my debt.
I really enjoyed your "time value of money" reference – maybe all the CFA studying has gone to my head. I'm such a nerd, lol
my excuse for not saving money: daycare, bills, and everything else that comes along with having kids. Kids are expensive. My husband and I tried to save money but putting a certain amount into our savings but its so hard to because either something comes up and we have to use that money.
I think I'm a combination of #1,3 &4. It's a bit hard to be unexpectedly in a sandwich generation. A time where you spend for your parents(my in-laws) daily needs and sister/brother-in-laws and my own children. (*sigh) And so I have many reasons not to save, just like others. Finding reasons not to do a thing is as easy as pie… but will not get you anywhere.I should be saving. I know that. Everyone should imprint in their habits this practice. Saving is one of the requirements for content living and financial freedom. Best regards,Belinda