Top Excuses for Not Saving Money & How to Get Rid of Them

As we transition into the 2017/18 financial year, unfortunately many people find themselves in the same situation as the previous year – filled with excuses of why we haven’t met our financial goals. So once again, the pact to save money has jumped to the top of our to-do lists, something that’s easier said than done for some of us, right?

Saving money usually means something different to everyone. While some seem to effortlessly grow their bank account figure on a modest pay check, others struggle with the challenge. Here are five of the most common excuses people make for not saving money and how to eliminate the barriers.

Excuse #1 – I don’t earn enough

Think back to the days when you truly didn’t earn a largely sufficient wage, or as much as you do now. University days, first job, perhaps you were unemployed for a while? Sure you may have lived with your parents back then or had fewer commitments, but whatever your situation was, you lived within your means and managed to get by with limited funds.

Managing your finances successfully comes down to adapting to your current situation and making your money work for you. If an added yet mandatory expense came up of $50 per week, you would find a way to make it work. Why not make that mandatory expense your savings account?

Excuse #2 – I don’t know how to save

Saving money doesn’t need to be a difficult procedure. It’s a matter of understanding your input and output and then budgeting accordingly. You can start by getting into the habit of putting a percentage of your pay check away each time you are paid. The best way to do this is to make an automated payment each week/fortnight/month, to avoid the ‘I forgot to save’ excuse.

With the right tools in place, saving can become a part of your everyday life without putting too much thought into it. If you are finding yourself having difficulty managing your finances, check out our article 7 Ways You Can Make Better Decisions With Your Money Today. After all, there’s no better time to learn than the present.

Excuse #3 – I have too many bills to pay

The drive to start saving can be hard to grasp if you find yourself with little to no money in your bank account at the end of the month. The good news is small everyday changes can make a huge difference, so this can be resolved by changing one simple habit. For example, trade that daily $5 morning coffee for a caffeine fix at work, or cancel that gym membership you only ever used once.

If your bills have become too unmanageable, it could be worth reassessing your cash flow. Most people should be able save a percentage of their pay, even if it is a very small amount. You can contact our financial advisors to help you reach your goals and get your finances where you want them to be.

Excuse #4 – I’m young, I will save later in life

Why wait until you are in desperate need of money to start saving, when you can start now? If you don’t believe you can enjoy life without spending all your money, something is wrong. This excuse is simply a mental barrier you need overcome because it’s more than just possible to live in the moment and invest in your future at the same time. Money earns interest (if you have it in the right place) which is why investing and saving your money now will considerably increase your total savings compared to if you start later in life.

Excuse #5 – I don’t need to save

Repeat after me, EVERYONE needs to save.

Imagine a debt-free life, the possibility of early retirement and financial protection. These are all possibilities when you have a clear goal of what you want your future to look like. Learning to save is one of the greatest qualities in wealthy, financially stable people. You may not be saving for anything in particular, but the truth is you don’t know what’s around the corner. It’s important to have reserves saved for if/when the unexpected happens, which is why getting ahead now is guaranteed to save a lot of stress later.