Saving money these days may well be more important than ever. The recent economic crisis left many people dependent on their savings, and for an unfortunate number of people, there simply wasn’t anything saved up. These are five of the worst excuses people use for not saving money.
“I can’t afford it.”
This is a very common excuse for not saving, and it is also one of the worst answers possible. Even if you are living paycheck to paycheck, you need to get better at managing money. When there is no money to spare each week, you are at a high risk of financial disaster if emergency strikes. Cut any unnecessary expenses and luxuries and start creating a nest egg, even a little at a time.
“I’ll do it later.”
This is another dangerous excuse. For most people, “later” never comes, and an emergency can leave you – and your family – without any money at all.
“I already have a 401k”.
While a 401k can be essential, that money is for retirement. Saving money is also about having money available now in case of a rainy day before retirement.
“I want to spend my money on things I deserve.”
While this may sound like a good idea, especially thanks to television ads that imply that money is meant to be spent and that if you work hard, you ‘deserve’ luxury products, remember that emergencies can happen to anyone at any time. Feeding yourself or your family for 3 extra months while you’re out of work is much more crucial than a new Prada purse from your favorite boutique.
“It’s too late.”
It is never too late to save money. Even if you are near the age of retirement, every bit of money you save can increase the limited income you will be able to live on after retirement.
The bottom line is that there is no excuse for saving money, and if you have said any of these things, it is time to rethink your strategy.