‘Excuses are the nails used to build a house of failure.’
Don Wilder and Bill Rechin, authors of the successful comic strip ‘Crock’.
Making excuses does not go away with age. You probably remember very well the situations from your childhood when your mom asked you to do something for her at home, for example, to throw away rubbish, wash dirty dishes or vacuum the carpet.
What did you say at that time?
(…)
What about when your wife asked you last weekend to go shopping together? Did you tell her that you are crazy busy with a new project at work which has to be finished by midnight?
I know what you are trying to say!
But no worries, you are not the only one who tells small lies. We all make thousands of excuses during our lifetimes because we feel guilty of having done something we should not have done. I often find myself guilty of using lots of clean cups every time I go to the kitchen to get some water instead of washing the dirty cup beforehand and use only one cup.
In general, people make excuses in response to accusations, to justify a wrong action, or to avoid admitting disappointments, for example, doing something that is not up to the standard.
We may make excuses not to save money saying that ‘the job market is currently stable’, or even when we plan to purchase a bigger house as ‘we could always take the mortgage, if we do not have enough savings’.
We try to rationalize when we feel that saving is too demanding, because we want to fulfill our urgent shopping needs, or because we want to make ourselves happy by buying a new gadget.
It is fine to spoil yourself from time to time with a nice treat or some comfort food, but this unexpected treat should not happen every day unless you want to ruin your monthly budget.
Making excuses is really, really bad, especially when it comes to saving money. It proves that someone does not have strong will to resist temptations. And, once you start breaking the saving rules you imposed on yourself, for example, not buying soft drinks in December, you will most likely do it for the second time, and the third, and the fourth, and the rest of your life. And then your life will turn into ‘failure’. I am kidding!
The most common excuses not to save money
I have come up with the list of the most common excuses that people make to avoid putting money aside for the future.
1. I do not have time to save. This is probably the most common self-justification. If you think that you are the only person in the world who is short of time, think again. I used to say that I do not have time, but then I caught myself watching TV for a couple of hours, or reading news on the Internet. By simply cutting your TV time and Internet time in half, you can find extra hours for planning financial goals, reading about the best ways to save money, or spending more time in the supermarket to master grocery shopping skills. You can use the time in the public transportation to listen to podcasts on the way to work, or use lunch break to make shopping lists.
2. I am not good at saving. A lot of people do not believe in themselves. They think that they are born with inability to save money. That is not true. All you need to know to become a saving ninja, is to get to know your personal spending habits and gain basic understanding of personal finance. You just need to find the willpower in yourself. But, if you really cannot make saving money happen, set up a system which will automatically send a part of the paycheck to your saving bank account.
3. I do not know how to save. Saving money is not rocket science or nuclear chemistry. It is less about numbers and math, and more about habits. Of course, you need to educate yourself a little. At Super Business Manager, you will find hundreds of money-saving tips. There are also countless numbers of free resources on the Internet because many personal finance bloggers write about saving money. You can borrow a book from your local library to learn about family budget management, and basic accounting too. There are hundreds of guidebooks written in a very simple language, even your grandma understands. And, if you still do not understand by the end of the day, just remember to spend less than you earn.
4. I am too young/old to start saving. Unfortunately, nothing is certain in this world: the company you work for may go bankrupt due to bad economy and you will lose your job, a natural disaster (like tornado or flood) can happen in your neighborhood, or health emergency can occur. Because the older you are when you finally start saving, the less you will have when you get old. You should start saving a portion of your income as soon as you get the first job. If you start saving a USD$1,000 a month at the age of 50 and continue working for 10 years, your savings will grow to USD$120,000. But, if you start saving a USD$1,000 a month at the age of 30 and continue working for 30 years, your savings will grow to USD$360,000.
5. I do not earn enough to save. Some people cheat themselves saying that they will start saving money when they get better-paid jobs. The problem is that once they get a raise, they tend to increase their spending rather than put the extra cash into a saving account. But what makes you certain that you will even get salary increase? In the worst-case scenario, what if your new job is going to pay you the same or lower salary? Will you still wait to get another job? I do not expect you to save USD$3,000 out of your USD$3,500 paycheck. But I am pretty sure that you can put aside at least 10% of your income, no matter where you live and how much you earn.
6. I do not need to save. Just because your salary is very high today, it does not always have to be that way. A few minutes earlier, I have mentioned about natural disasters which can destroy your household, or you can lose your job because of bad economy. There are so many possible short-term reasons why people should save money such as emergency funds, and long-term reasons to save money such as retirement or your kids’ education.
7. I might die tomorrow. Even though you die tomorrow, your family will have to cover the cost of a funeral which is usually a couple of thousands of dollars. Without any money saved in your bank account, you are automatically shifting these funeral costs toward your relatives. If you die while in debt, most likely your relatives will be responsible for your post-mortem expenses. But, if you have savings while you die, the money will not disappear, but your family will inherit the funds.
8. Nobody can stop me from spending my money. Nobody will even try to stop you from spending your hard-earned money on things you dream about. Because your money is nobody else’s business. You are entitled to spend on whatever you want. However, you need to be reasonable not to spend everything on pleasures.
9. I can borrow money, if I need. You can always borrow money, but remember that you will have to pay back much more than you have initially borrowed. Banks earn profit mostly from loans and mortgages. It is much safer to pay for a small home repairs using savings than a credit card. Borrowing high-interest-rate money from the bank just to cover daily expenses is the first step toward getting into financial troubles.
10. I need to pay off my debt first. That is great that you are aware and willing to pay off your outstanding debt. You should start with paying off your credit cards and other high-interest loans first.
11. I know nothing about the stock market. Many people thing that setting up a great budget for their family will take hours of preparation and requires a PhD degree in Economics. The volatility of the stock market is a nightmare that professional financial brokers and investors with million-dollar investment budgets have to deal with. Saving money is more about creating habits and less about numbers and investment.
12. I will get my severance payment when I get laid off. The severance package usually does not equal a normal paycheck. Also, companies will do everything possible to get around it, and not to pay you a severance package when you lose your job. Seeking advice how to save costs is one of the reasons why companies hire expensive lawyers. Accordingly, prepare yourself for the worst. The truth is, while severance package will buy you some time in between leaving your old job and settling down with the new one, it will never be enough to live on severance package for years. Severance payment can indeed boost up your savings temporarily, but it is not a good idea to start your money-saving adventure by scrapping bucks from this one-time payment.
Do not be afraid of failing at saving money. None of us likes losing, and we all would always like to win every single time. But life is full of both winning and losing moments. I have personally failed many times, and tried to make excuses. Failure is a part of success. But, the secret is not to fail too often and to learn from other people’s mistakes instead of your own ones.
The most important part, and the most difficult at the same time, is to start. So, make the first step and start saving money today.
