Every wise person in history said something about saving for a rainy day. Well, maybe not every wise person, but I am sure that there no dearth of people who have given this piece of advice.
Yet why is it that even in this day and age, many people do not have savings accounts? Just the other day, I read that almost one-third of American households have no savings account! It might be unthinkable for some, but there are actually people who find all sorts of excuses not to start a savings account.
Take a look at some of these rather dumb excuses, and see if you’ve fallen prey to them. Then do something about it!
I can’t afford to save.
Writing that out makes me shake my head. Sure, it may sound logical if you repeat it to yourself often enough. You might start with how much you earn, how much you have to allot for bills, and how much you need to live in general.
If you think about it and are logical about it, though, you will probably find some areas you can cut back on. From those cut backs, you can actually start a savings account, no matter how small.
I need to get the new iPhone.
Or whatever gadget or item you have been waiting for. Sure, it is nice to have the latest gadget to play with, but is it really necessary? Don’t be a victim of the latest, shiniest, and most popular hot thing. You can live without it. Really. And instead, you can invest in your future.
I’ll save when I earn more.
I’ve heard this so many times that it has just gotten old. Have you ever heard of lifestyle inflation? The more you earn, the more “urgent” expenses you have. You’ll never start saving if your mindset is like this!
Savings accounts have very little or no return anyway.
Sure, regular savings accounts will not make your money grow at a fast rate, but that is no reason not to set money aside! There are even savings accounts that have decent interest rates, and in any case, it is better to have the money set aside in case you absolutely need it. Little or no yield is better than not having any cash at all when you face an emergency.
The trick is making the decision to save money. Whether you are self-employed or you work for someone else, there is really no good excuse. Just start saving money now!
You can also take a look at your options when it comes to savings accounts, and see which program is the best for your needs. Click here to read more information on savings accounts.
Image credit: Tax Credits
Originally posted on September 17, 2012 @ 7:07 am