I am sure that you have heard them all. You ask someone if they are saving and they have a ready excuse, that in their minds is perfectly logical but of course leave much to be desired. The truth is that in this environment, not saving is the worst idea for anyone regardless of their income level.
The situation may be bad now but it can get a lot worse and without a financial net to fall back on it can be devastating. So let us examine the most common excuses people make why they don’t save and why their reasoning is faulty.
EXCUSE #1 I don’t make enough money.
Okay this is at first glance a good excuse but not having any money left at the end of the month doesn’t necessarily mean you can’t afford to save. Check on what you spend your money on every month. Do you have a job? Then you can afford to save a portion of the salary each month. If you save $1000 every month you will have $12,000 at the end of the year.
EXCUSE #2 I don’t trust the banks.
This one is a bit tricky as I know some might have been hurt in the past so it might be hard to have faith in our financial institutions, but they have been pretty reliable the last couple of years. There is also depositor’s insurance that protects the deposits of its customers.
EXCUSE #3 There are too many bills to pay.
You need a budget so you can put aside money for a rainy day, living pay cheque to pay cheque is a disaster waiting to happen. The bills will always be there but you need a plan to dig yourself out of debt.
So there is no excuse!! Start saving today!!!