Yesterday I offered up some of my favorite excuses for not saving. Today, I have three more doozies for you. Do you recognize yourself, a friend, or someone at work in these excuses?
I can’t stop shopping (said in a soulful and pathetic voice)
Really, you have no self-control and you’re using that as your excuse. The easiest way to not spend – and therefore to have money to save — is to stay out of stores. If you’re shopping for entertainment find something else to do. Never go into a store without a list. And pay cash or have the cash ready to pay off the credit card if you’re disciplined enough to use them as a tool and not as a financial bridge.
Cars, insurance and gas are expensive
Canadians routinely overspend on their vehicles. If you’re using more than 15% of your net income to get you from here to there, you’re spending too much. I’ve always considered a car a means of transportation, not a reflection of my identity or success. I scratch my head at young people starting out who think they should be driving a $50, 000 or $60, 000 luxury vehicle. Even if you buy one second hand, they are more expensive to maintain and insure. I guess the big question is this: Is it more important to look rich or be rich?
I’m too (pick one) young, old, rich, poor, or busy to save
Everyone thinks their situation is special and their challenges unique. But we’re more alike than we want to admit. And everyone needs to set something aside for when they’re old and gray. It’s never too late to get started. And it’s never too soon. If you haven’t set a penny aside, making just a small commitment today can make a huge difference to your financial future. So it doesn’t matter how little you have to start, the important thing is to start.