Everyone needs a little nest egg. Although the modern era of ‘now now now’ has curtailed many of the ideals of saving for a rainy day, this is no excuse to spend every penny you have. A savings pot does everything from cover those emergency roof repairs to paying for your child’s future education.
Some people want to save, but they do everything they can to avoid actually doing it. In this article, we’re going to bust some of the bad excuses people come up with for not putting something away.
Not Understanding Finance
If compound interest and savings accounts makes your head ache, this still isn’t an excuse to not save. The fact is there are hundreds of free resources to help you understand finance. The fact you’re reading this article now demonstrates you have a desire to learn. Set a few hours aside to learn about finance.
Lack of Money
Most people don’t lack money. They have plenty of money where savings can be made. The problem is they don’t want to sacrifice to create that cash reserve. Very few people genuinely need to spend every penny they make.
Start by checking your monthly outgoings. Look at what you’re spending the money on. Do you really need to eat out every weekend? Consider not eating out and putting the money towards your savings.
You can also look outside yourself by asking for a raise or looking for another job. It requires effort and sacrifice, but even the smallest savings build up quickly.
Debts are a primary concern of yours. You can usually negotiate lower repayments. The fact is paying the bare minimum and putting the rest of your money into a savings pot can net you more money in the long-term. This is because of the concept of compound interest. It’s what multiplies your pot and makes saving worthwhile.
Pay your debts, but don’t pay more than what they’re asking.
Doing it Later
Many people, especially younger people, believe they can have lots of fun now and start saving when they’re older. This is false. Your prime years for saving are in your 20s and 30s. People older than this tend to have increasingly crushing financial responsibilities. These come from children and mortgage repayments, mainly.
When you’re younger you have few responsibilities. It allows you to put most of your disposable income into storage for later.
There’s no time like the present, so start saving now.
Can’t Do What You Want
It’s common to hear wannabe savers whine about the fact they can’t enjoy themselves if they’re saving all the time. This is a gripe that falls entirely at the feet of the person making it. Yes, you have to sacrifice now to be able to save. It doesn’t mean you have to be frugal. It just means you need to save for what you truly want in the long-term, rather than what you want now.
It can be difficult to stay inside, but you’ll have greater experiences later on because of it. Life doesn’t end in your 20s.
Let’s say you want to save for a dream holiday. Would you rather cuddle monkeys in Africa or spend another night hungover at the urine-stained bar downtown?
It’s not a difficult answer!
You’re in Control
Understand that you are the person in control of your own destiny. Every single point in this article is something you can do something about. There’s no reason why you can’t change your attitude and begin saving now. It doesn’t matter how much you save. Just save as much as you possibly can. Make tomorrow easier for you today!