In my few years of experience managing personal finance, I’ve listened to several kinds of worthless excuses of not wanting to save money from people. Let me tell you one thing, if you ARE willing to save money, you can do it regardless of whatever problems you may have and if you are not willing to save, you will only be looking for excuses of not saving money. A few most common excuses people give for not able to save money : –
I don’t earn enough
There is no such thing as enough. You will never be able to earn “enough”. It is all about your attitude towards saving money. You never make a specific amount as your goal to save but in fact you play on the percentage terms. Say, you should save at least 20-25% of your income every month. Now if you plan to save a percentage of your salary, where does the word “not enough” come into play? Save whatever you can, even if its mere 5-10%, it is still something and this something will make you richer tomorrow.
I’m in debt
Many of us are in dept, still paying house loans or car loans etc. But that does not stop you from being able to save money? And in case you mean to say that paying your debt eats all your salary every month, then you’ve done an extremely horrible financial planning. You have not just financially risked yourself but also made it sure that you will not be increasing your income for several years in a row. And if this is just an excuse to not save, then stop it and plan on to saving your money. Just manage your debt repayments and savings properly and it should really not be difficult.
I’m young and it’s too early to start saving
Another lame excuse young people give to not wanting to save money. It is never too early to start saving. The earlier you start saving, the richer you will get in future. Wealth grows itself and the faster you start your wealth making machine, the more wealth it will generate for you. I know that you are young and you wish to spend and enjoy your life right now, so nobody is asking you to live a crappy life and obsessively save money. Just save less and spend more for a while till you’re satisfied, then increase your saving later on. Remember, anything you save, even if it is a mere 5% of your salary, it will help you reach your goal of getting rich in future.
I like spending and want to enjoy
Everyone loves to enjoy their life and spend money to live a rich luxury life. If this is your goal, then there is even further need of saving money and putting your money to generate wealth for you. If you’re mistaken that you’re saving for retirement from the age of 20’s, then you’re wrong. You are saving to accomplish your goal of getting rich, not to live a life after retirement. By saving and generating extra income from your investments, you will make sure that tomorrow you have more and more money to spend on luxuries which will not be the case if you do not save.
Savings don’t generate enough returns
Who told you that your savings will not generate enough returns? By investing your money properly, you can get anywhere between 15-30% or even more per year. Isn’t that enough returns on your savings? Stop looking for excuses to spend and plan on making your future more prosperous.
Everytime I save, I end up spending it
A lot of people have a problem of spending their savings. With a lot of courage they save quite a lot of money, but end up spending all of it in buying something huge. They just can’t control themselves with the spending. So I have a nice plan for you. You go for monthly investment plans that come with a locking period. You will be paying a certain amount on a monthly basis and you cannot take it out for 3-5 years. Perhaps the wealth that will be generated from your savings might change your attitude towards saving. The locking period will make sure that you don’t spend your savings at any cost.