Every once in a while someone will say something to me that really lights a fire and gets me ranting. Everyone knows that saving money at its core is a strong value and a good idea. This results in people that don’t save their money coming up with all kinds of excuses for why they don’t save. Yesterday I once again heard the classic excuse for not saving money- I will save when I’m older. Before I started ranting like a lunatic I decided to look around MSN Money for other lame excuses for not saving money. Today I will take a look at common excuses for not saving money according to MSN Money and tell you why I think these excuses are ridiculous. Tomorrow I will go through a list of excuses for not saving money that I have heard from other college students/twenty somethings over the years.
The first excuse is I don’t make enough
There are so many ways to spend money that chances are you will never earn enough money. Most people never feel like they earn enough money so instead of comparing yourself to those than earn more money than you try comparing yourself to those that get by on less money than you. Think about that for a minute. How is it possible that you think you don’t earn enough money when someone that earns less is able to survive and save?
The next excuse is I’ll get around to it later
Some people do and some don’t. Usually when most people get around to saving money it is a bit too late. College students plan on saving money when they start their careers but even if you get into the habit of saving $20 a week while in college it will follow you through to your adult years.
The third excuse is I deserve a little luxury in my life
Yes we all do but this is where delayed gratification comes into play. I love to travel a couple of times a year but I will never travel unless I have the money saved for the vacation well in advance. People think that you need to spend lots of money to enjoy your life. The trick is to try to enjoy your life with spending as little money as possible. I have already told you guys here that by saving $40 a week I’m able to travel twice a year. It’s really as simple as that.
The fourth excuse is someone else will take care of it
Very few people are lucky enough to receive an inheritance or some sort of monetary gift from a family member. I am not one of those people. I plan on earning every penny and paying for everything on my own. I have a friend that relaxed for a year after high school and did completely nothing while I worked full time and studied full time. When he turned 21 he received his Grandmother’s inheritance and he had more money in his bank account than me. Life isn’t fair sometimes but if you don’t have an inheritance lined up then don’t ever assume that someone will take care of your financial situation.
The fifth excuse is I’m saving through my 401(k)
You are almost there because you’re planning for your retirement but we all need more than one method of saving money. Your 401k should be an additional savings vehicle and not your main method for saving money. The good news is that you care about your retirement and the bad news is that this money alone will not be enough to retire on.
The final excuse is the item will be pay for itself
Once again this excuse is not suffice for spending all of your money and having an empty savings account. Sure there are purchases that become valuable in the long run but this doesn’t mean that all of your money should be spent on these purchases.
Photo: Jake Wasdin
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For the past year I used excuse #1 a lot because I told myself I didn’t make enough. But then looking more carefully and examining my finances, I realized I can invest a small amount and still live my current lifestyle. So I recently opened a Roth IRA with Vanguard and every month will automatically deposit a small amount in. I agree with you, just an excuse, but if it is really important, you will take the time to figure it out.
Well the excuse of not making enough is an all around excuse when it comes to money.
As the saying goes, its not how much you make but how much you keep.
Probably the other reason associate with this is because people do not know how much they really spend, or how much they really need to spend.
Excuse number #2 is commonly heard!
So many people around me say, ‘you’re too young to save’ or ‘I’m too young to save.’
Also once I said, “You’re never too young to save.” to which one of my friends responded, “Yes you can be.”
What people think about is the extremes. That by saving, you’re not spending or ‘living life to the full’. What they don’t bother to ask is what you’re saving for and how much you’re putting aside each month for it. They automatically assume you’re being cheap. How. Frustrating.
@ tom: so often they’re not willing to really take a look at their finances (as you mentioned with their spending habits) and so they assume they can’t afford to save.
@Maureen Funny you mention the “your too young to save theory.” I hear this all the time from co workers that are older than me. In fact someone reiterated to me the other day that no one can take your experiences away from you. I admit that I agree with that but I am a strong proponent of the fact that you can enjoy life and save money at the same time. The people that tell you your too young to save money will be working long after you have retired.
@Studenomist: I hear it from other people. There is this sad case that my dad told me about though. He said that one of his friends saved every little penny to buy a block of flats which he wanted to rent out. A few weeks after he finally bought the block he died in a freak motorcyle accident. This had a profound effect on my dad. I see why he told me that but the difference is (like you said) you can still enjoy life but save at the same time. It’s so important to strike a balance.