5 Money Excuses to Stop ASAP
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5 Money Excuses to Stop RIGHT NOW!!!
One thing I’ve always said is that our finances rarely improve on their own. Therefore, if we don’t like where we are – or if we’re in a financial rut – we have to be proactive. Things aren’t likely to change until we take the first step.
I’m not saying it’s easy to make changes. But the way we think can affect our progress. So here’s a look at five money excuses to stop ASAP.
1. “I can’t afford to save money”
I understand the feeling 100%. I’ve said this myself several times in the past – and at the time, I truly believed it.
However, the biggest mistake I made was thinking I needed a lot of extra money to save. And if I couldn’t save a lot, I felt it was pointless.
To be honest, this was just an excuse – a way to justify spending the extra money I did have on things that didn’t matter.
But one thing I’ve learned is that it’s always important to save something – even if you don’t have a lot of disposable cash.
Saving $5 or $10 can add up quickly. For example, putting aside $20 a week is more than $1,000 a year. Granted, this might not seem like a lot. But it’s $1,000 more than you had the year prior.
If you haven’t already, review your budget and determine an amount to save every week or each pay period. From here, set up reoccurring transfers from your checking account to your savings account. Do what you can afford.
2. “I have plenty of time to start saving”
This excuse is slightly different from the prior excuse.
With the first one, you don’t have a lot of extra money to save. With this one, you might have extra money, yet you’re not saving because you feel you have the rest of your life to worry about this.
But the reality is, time can quickly get away from you. And if you keep putting your savings on the back burner, you might do this until you can’t anymore. In which case, you spend your later years paying catch up.
Take retirement savings for example. If you’re 22, you might put off saving for retirement until you’re 25. And once you’re 25, you put it off until 30. And then 35 – and the cycle continues.
It’s so important to start saving early and take as much advantage of compounding interest as possible. The difference between saving for retirement at 22 and starting at 35 can be over $100,000 in your retirement account.
Plus, the best time to start saving is when you have fewer expenses. It might be hard to find extra money in your budget once you take on other responsibilities.
3. “I don’t need a budget”
There’s a misconception that you only need a budget if you don’t have a lot of money.
Now, yes, if you’re a low earner a budget is important because you have less room for error. It’s often easier for someone with a higher income to dig themselves out of a hole.
But just because someone’s income is enough to cover their expenses doesn’t mean that they don’t need a budget.
The truth is, if you’re having trouble saving money, or if you’re not planning for retirement—yet your income is enough…. the problem might be lack of a budget.
A budget ensures spending a reasonable amount in different categories. You can track your spending, and then pinpoint areas where you’re overspending.
Setting spending limits might create more disposable income, which you can use to build a savings or achieve other financial goals.
4. “Everyone has debt”
To be abundantly clear, I’m speaking specifically about credit card debt here.
I cannot tell you the number of times I’ve heard someone say, “Everyone has debt,” or “It’s the American way,” right before pulling out their credit card and making a purchase.
Keep in mind that if you tell yourself, “I will always be in debt,” this statement could become a self-fulfilling prophecy. This type of negative self-talk takes away your power to change things.
5. “I wasn’t taught about money”
I’ve heard this excuse from a couple of people, and I’m always confused.
If your parents didn’t teach you about money…does it really make sense to go through life not knowing how to manage it?!?
I realize that lack of financial education in your early years can result in poor money decisions as a young adult. But you can’t put that on your parents. At some point you have to take responsibility and educate yourself. The longer you put off learning the right way to manage money, the deeper the hole you’ll dig for yourself.