Finding reasons not to save is something probably everyone does whether we’re aware of it or not. No doubt, it is easier to come up with excuses not to save compared to cultivating good financial habits.
To ensure a stable financial future for you and your family, you are going to have to toss those excuses in the trash and get yourself focused on a solid savings plan. Old habits die hard, but let’s confront some of those classic excuses and see what you can do when the bad behaviour starts to creep back in.
Excuse #1: I Don’t Know How to Start Saving
Let’s start with the feeblest excuse. How many pairs of leather shoes or black high heels do you have? If you know how to horde things (no, “collect” is too nice a term to use here), you definitely know how to save.
Change your perspective on saving money. Make an effort to collect dividends instead of bags or nice shoes. The rule of thumb here is to collect more cash and fewer things.
Source: Pinterest
If you really don’t know how to start saving, set a small goal and stick to it. Decorate a nice savings jar if handicraft is your thing because it helps if it makes you happy whenever you look at it. Otherwise, just a simple piggy bank will do. Simply drop in $2 (heck, even $1) every time you spend $10. Also, if you have spare change, you may feel the need to spend it on frivolous things such as unhealthy snacks. This saves your waistline too!
Once you get the hang of putting aside money instead of spending it, increase the amount you put inside each time. It’s like training for a marathon. At first, you can only run a few kilometers, but the more you do every day (or week), the easier they’ll get, and the further you’ll be able to run. The same goes with putting money aside.
Read Also: Successful Financial Planning? Here Is What The Journey Would Look Like.
Excuse #2: I Don’t Have Enough Money to Save Properly
The cost of living in Singapore is high. Recently, there’s news of rising car park fees as well as rising vegetable prices. Many people are used to living paycheck to paycheck. When a household’s budget is seemingly tight, the habit of saving is often (and easily) abandoned.
However, having too much month left at the end of your money still doesn’t give you a valid excuse to avoid saving. Retirement is still a goal you want to work towards. Besides, you still need an emergency fund, right? Perhaps now more than ever if you have not started saving.
So before you blame your paltry paycheck, take a good long look at all the little unnecessary places your money may be going. Look for ways to reduce your spending to free up some resources. You may think you are living on a razor-thin budget. But it will surprise you when looking at your daily habits, you’re likely to find that there are areas that you can cut back on.
Excuse #3: I Don’t Have the Time
“Having time” is a relative term. First, you have to set up a separate savings account from the one where your salary is debited. All you need is 15 minutes to set up a monthly automatic transfer, from the account with your salary into your savings account or retirement fund.
If you can make time to WhatsApp with your friends or watch an episode of “Game of Thrones,” you definitely have enough time to set up this easy saving strategy. Fifteen minutes to a peace of mind and a sounder financial future? Yes, please!
Excuse #4: I Don’t Know How to Invest, It’s Too Complicated
You don’t have a degree in dentistry, but you do brush your teeth. And not having your own real estate license did not deter you from buying your first home, right?
The same goes to personal finance. Saving does not mean you jump into stock investing or get involved in a fancy ILP. You can start with the basics such as accumulating cash in your savings account and stop there. Although it is not a good way to protect your life savings against inflation, it is better than nothing for some (extremely risk adverse) people. Alternatively, you can keep learning and add things as you go. For example, starting with bonds, then stocks, followed by forex and so on. You can keep your finances as simple—or as sophisticated—as you are comfortable with.
Excuse #5: I Have Too Much Debt
Well, that may be true for those who just got married, bought a car or a house. If you’re in debt, particularly credit card debt, you should definitely work at getting rid of it. In fact, it should be one of your top priorities. However, it is that same method of building a habit—of taking a chunk of money every single month and applying it to your debt load—that will help you to kick-start your savings plan.
As soon as your credit card is cleared, continue sticking to the habit and apply that targeted monthly sum to grow your savings. It is a lot more satisfying to see your wealth growing than to see yourself pay off your past purchases. The most important thing to work towards, for a start, is to create an emergency fund. This is so that in the future you won’t have to turn back to your credit card whenever an unexpected (big) expense arises.
Read Also: 5 Ways To Trim The Fats From Your Expenditure
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