Whilst we all love the thought of having some money stashed away in savings, a huge number of us tend to make a range of excuses to avoid putting anything into savings. This is all well and good until a time comes when you need some emergency funds, at which point your options become very limited – and often very costly because you end up having to borrow money.
In the current financial climate, it is important for everyone to try and put at least a little money aside, but some people make up all sorts of excuses to avoid doing this. By failing to save money, you miss out on being able to treat yourself to luxuries such as saving up for a new car like the 2018 Toyota Corolla. In addition, you could be left with no financial backup in the event of an emergency such as unexpected bills and costs that may arise.
Some of the excuses we make
There are various excuses people tend to make when it comes to saving money towards a major purchase or for emergencies. Some of these include:
- Lack of returns: We all know that getting returns on savings at the moment is like getting blood out of a stone. However, refusing to put any money aside because of this is simply cutting off your nose to spite your face. Of course, all savers are fed up at the lack of interest paid on savings but at least if you put some money aside you will have something to fall back on in an emergency, even if it hasn’t earned you any interest.
- Lack of money: Many of us now find that money is tight and it is therefore understandable that so many people do not think that they bring in enough money to put any aside in savings. While this may be true in some cases, there are many other people who are left with little or no money to save because they have squandered a lot of it unnecessarily.
- Lots of debt: For those people who have a lot of high-interest debt to pay off, it is more important to focus on repaying the debt than putting money into savings. However, this doesn't mean that you shouldn't leave a little aside in savings in case of an emergency. Without an emergency fund you could find yourself racking up even more debt, so set yourself a target and try and put this amount aside after which you can focus all of your other cash on repaying your debts.
- Not worth it: Some people believe that if they are only able to put tiny amounts aside now and again, it isn't worth the hassle of putting it into savings. However, all these small amounts add up and you will be surprised at how they can collectively become a significant sum over time.
So, with the start of another New Year upon us, now is a great time to stop making excuses not to save and start finding reasons to start putting money aside.
*This is a collaborative post.