6 Common Excuses for Not Saving Money

6 Common Excuses for Not Saving Money   By Tara Struyk

Have you ever settled on a new exercise program, only to get a bad cold a few days in and happily throw yourself on the couch, relieved to have a handy excuse? Excuses must be human nature; I know I usually make them when I'm facing something that’s new, that's hard, or that I just don’t enjoy. And I’ve certainly made excuses when it comes to money.

In the years that I’ve been writing about personal finance and investing, I’ve also heard my fair share of excuses, mostly from readers who don’t agree with my advice.

The problem is, unlike good financial habits, excuses are easy to come by, even though most of them just don’t stand up to reason. Check out some of the ones I’ve heard most frequently so far.

  Excuse: “I don’t make enough to save money.”

This may be true for some people, especially in this economy, but not having any money left at the end of the month doesn’t necessarily mean you can’t afford to save.

After all, most people spend money on a number of unnecessary things each month, such as restaurant meals, impulse buys, and cable TV. Finding some money for saving doesn’t have to mean voluntarily living in a dark, unheated room without any entertainment or luxuries, but if you’ve declared your budget too tight to put money aside before even looking for ways to reduce your spending, you’re making an excuse.

Excuse: “Interest rates are too low to bother with.”

Interest rates are at an all-time low right now, and that does make putting money into a savings account a little, well, disheartening. However, it’s likely that many of our grandparents — and certainly our great-grandparents — may have gone years without using a bank at all. Now that banks provide a safe place to park your cash, they pay interest in return for holding your money.

Interest is a great way to grow your savings, but even if you get almost nothing, at least you have some cash when you need it. Plus, if you’re able to put enough away, you can always look into investments with the potential for higher returns, such as stocks and mutual funds.

Excuse: “I have too much debt to put money into savings.”

If you have a lot of debt, it’s important to focus some serious effort into getting rid of it. But that doesn't mean that every bit of money you can spare should go straight to your creditors. In fact, it’s more important than ever to save when you’re in debt because it can help you avoid digging yourself in deeper.

If you don't at least have a small emergency fund, you'll be forced to pull out your credit card when unexpected expenses — such as a car repair — inevitably arise.

Excuse: “I’ll catch up later when my salary is higher.”

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