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?