We are really good at coming up with excuses when we have done something wrong, no-one likes to admit they messed, up so our talent for “cover up” is well honed. While cover ups serve us well when trying to avoid the wrath of a co-worker whose tuna sarmie we illegally snaffled but when it comes to managing our finances, the only person we are fooling is ourselves.
Saving is about mind set, not resources. It doesn’t matter whether you make a modest or monster salary- you should save a certain percentage and learn to live within that income because you have a responsibility to provide for yourself and your goals for the future.
So let’s unpack your favourite excuses so by the end of this article you will have nowhere to hide:
I can’t afford to save
The reason most people can’t save is because they are not willing to compromise on their lifestyle. Most people, if they really wanted to, could survive with a lot less if they did not subscribe to the image culture and their desire to buy things to impress. The thrill of shopping is short lived, the pain of too much debt or no savings will last a lifetime if you don’t get spending under control.
I’ll save when I earn more
All good in theory, but immediate needs will always take precedence over future obligations. The problem with this thinking is that most people do not adjust their spending to accommodate saving as they earn more, they just spend more-its human nature. You have to get it into your head that the time to save is now because for most people tomorrow does come but the savings got off the bus at the first stop.
It’s too late
It’s never too late to save money at any age. Don’t think about previous failed attempts, concentrate on the future.
I’m going to inherit
So here is a story, I recently met someone who was about to file for insolvency. He was expecting a large inheritance from his grandmother. In anticipation he bought an expensive car, a home with huge bond payments and raced up debt on his credit cards. He had a good income but he put himself in a position that he could no longer keep up with payments. When the will was read by the executor of the estate-his name was not even mentioned. Relying on an inheritance is a risk you cannot afford to take.