6 Excuses for not saving money

[Naomi]

Saving money always seems one of the most difficult things I have to do. Yet, it is important for the unforseen ...

6 (worthless) excuses for not saving money

by Tamara Holmes

Everyone knows the key to building wealth is through saving and investing. Yet last year, the U.S. Commerce Department's Bureau of Economic Analysis revealed that Americans had a negative savings rate for the first time since the Great Depression.

So why aren't people saving for their futures? While a number of excuses may be given, few are legitimate.

1. I don't make enough money.

2. I'll get around to it later.

3. I deserve a little luxury in my life.

4. Someone else will take care of it.

5. I'm saving through my 401(k).

6. This item or service will pay for itself.

Excuse No. 1: I don't make enough money; after you've paid your tithe.

What's the first thing you pay when you get your paycheck? If the answer is your mortgage, your car note or your credit card bills, you're probably buying into this excuse.

One reason many people don't think they have enough to save is because they don't know where their money is going or how much money they're spending on items they don't need. Pay attention and bring it from the unconscious to the conscious. Once you find out what you're spending money on that you don't need, you'll realize it's all money you can be saving.

In order to make sure you save that amount, have it automatically taken out of your account before you pay anything else for the month.

Excuse No. 2: I'll get around to it later.

"The answer to that excuse is: Someday never comes.

People who put off saving and investing also don't get the benefit of time, which is one of the greatest factors in successful wealth accumulation.

Excuse No. 3: I deserve a little luxury in my life.

The purpose of having a healthy savings plan is not to deny yourself the pleasure of buying things you like today. Not only should you be saving for retirement and emergencies, but you should also reward yourself by saving for things you'll want to splurge on sometimes. If this is your favorite excuse, Stav suggests creating separate accounts for various savings goals, including occasional indulgences.

Another way to combat this excuse is to think of saving as a luxury since your savings buy you the freedom from being constrained by money worries, says Bennett.

Excuse No. 4: Someone else will take care of it.

While this is more likely to be the excuse of a spouse waiting for the other to bring home the bacon, anyone can fall into the trap of putting the savings responsibility onto someone else.

Counting on an inheritance to kick in or even entertaining serious hopes of enjoying the fruits of gambling or lottery winnings are forms of this excuse.

Ultimately, you are responsible for your own financial future.

Excuse No. 5: I'm saving through my 401(k).

Yes it's crucial to save as much as possible for retirement, but if you don't have additional savings for emergencies and life's occasional luxuries you're going to end up having to dig yourself out of debt.

A savings plan should have a multilayered approach: Savings should be allotted for retirement, emergencies and the evolving needs of life.

Excuse No. 6: This item or service will pay for itself.

One of the main reasons people give for blowing their savings is because they're buying intangibles that are worth more than money over time. While there are some items that fall into this category such as an education, it's easy to rationalize that something is worth more than it is.

Once you stop making excuses, you'll see your money add up. At that point, something interesting will happen, says Bennett.

"After you've gotten serious about saving for six months, what you'll find is you actually like it. Spending is addictive, but saving gets addictive, too."