I once had a friend tell me that it’s necessary to spend money to have a good time. Say what?? I couldn’t have disagreed more then, and I still feel the same way now.
Rationalizing Your Way into Spending
Far too often, people are easily persuaded away from their savings goals by the lure of material objects, vacations, and other fleeting desires. It’s very easy to rationalize your way into spending if you consider the following scenarios where people so often will allow excuses to run rampant:
- You’ve worked hard, so you tell yourself you “deserve” it
- You’re not seeing immediate progress, so you lose steam when it comes to saving
- You get caught up in comparing yourself to others
- You numb the pain of stress and/or emotions by shopping, going out, etc.
- You’re not committed to lasting change and fall back into old habits too easily
- Simple Pleasures Add up Quick
The problem with these behaviors is that they impede your progress. Sure, that $5 cup of coffee seems like a nice treat today but will you feel the same if you look back a year from now and realize that your daily indulgence has cost you over $1,300?! What if you consider that the same $1,300 could have been invested and actually earned you more money?
If coffee isn’t your thing, what about those lazy Saturday shopping sprees? Of course it’s nice to spend time with friends, but what about how those weekly outings impact your ability to save adequate amounts for your retirement and other long-term goals? Is having all of the latest fashions in your closet worth not being able to buy a home or have that dream vacation experience?
Reasons to Save
Reasons for saving are endless. From having financial security to alleviating stress, having in-tact savings is a vital part to any healthy bottom line. Whether you’re saving so you can enjoy a happy, active retirement, saving for emergencies, saving to build assets, or even just saving for the proverbial rainy day, it is essential that you make some effort to save regardless of your income or current financial situation.
Effects of Not Saving
If you’re not willing to make an effort to save or are fearful that you just can’t do it, consider your alternatives. Are you truly OK with living a life filled with the burden of debt? Are you able to handle the constant stress of living paycheck to paycheck? Are you alright with forgoing your dreams because you can’t afford to chase/reach them?
Chances are you’re not OK with any of this. If this is the case, commit yourself to immediate action and start building your nest egg now. It’s never too late to start saving for the life you deserve to be living!