There are a significant number of people across the nation that have no money saved at all that they could use in the event of a financial emergency. When these people are asked why they do not have any savings available, they commonly respond with one of the typical excuses that are used to justify not saving. Unfortunately, these excuses are not valid reasons for not having an emergency savings account or any other saving vehicles to fall back on in times of trouble. To prevent a financial disaster from occurring due to your lack of saving, ditch these excuses and start saving today.
Excuse 1 – I Do Not Make Enough Income To Save Money
One of the most common reasons cited for a lack of savings is that the person does not feel like they make enough money to be able to divert some of it to savings. These people generally live paycheck to paycheck, with most or all of their income designated to be spent before they even receive their paycheck. In nearly all of these cases, the person is spending all their income because they are living above their means and trying to ensure that they are living the same type of lifestyle as their friends or neighbors, even though they do not have the income to support it.
To ensure your future financial security, you must save a portion of your income somewhere that is safe and can be easily accessed. Regardless of income, anyone can save 5% of their pay for future emergency needs. A good way to accomplish this is to create a budget that includes all of your necessary expenses as well as the amount you intend to save each month. Creating a budget will help you control your spending as well as reveal areas where spending can be cut to save more money.
Excuse 2 – I Have Credit Cards To Fall Back On
Other people make the mistake of treating their credit cards as if they are emergency funds, using them to pay for important purchases that they would not have been able to afford otherwise. While credit cards can be helpful in these situations, it is usually very difficult for the person to pay off the balance of the credit card quickly, leading to months of fees and finance charges added to the balance of the account. If someone without savings is hit with several difficult financial issues in succession, the balance of their credit card account can rise rapidly and quickly become unmanageable. Saving money in a fee-free bank account allows you to handle these financial issues without incurring additional costs.