Saving Money: No More Excuses in 2014
By Priya Haji, CEO & Co-Founder, SaveUp.com
Financial resolutions abound with the New Year. Yet, it’s easy for the same old excuses to derail your progress. This year at SaveUp we are encouraging you to quit using the following excuses that delay your financial progress:
- My bills are too high to save any money. This weekend make sure to sit down and look at your monthly bills. There has to be at least one you can cut or reduce – for example, cut the cable and switch to Netflix. Then take the money you save from cutting this bill and set it as an auto-deposit to your savings account. You used to pay that bill every month – now you can pay yourself instead!
- I’m young – I don’t need to worry about saving money yet! This excuse is directly working against the most powerful effect of saving money early –compounding. The earlier you start saving, the more time your money has to build on itself and grow. This is literally money you make while you sleep. For example, a person who saves $100 a month starting at age 25 and invests with an 8% return will have $223,000 at age 60. A person who starts saving at 45 and saves double the amount of $200 per month at 8% will only have $70,000 when they hit 60. That’s a huge difference! Time is on your side – start now.
- Even if I don’t save, things will work out. Some people believe “I will marry rich, so I don’t need to worry.” Or they might think, “I know I will get an inheritance, I’ll be fine.” Or an even worse misconception is “I will win big in Vegas or on the lottery.” If one of these magical events happens to you, you are blessed. But even then, if you have already built good habits of saving, living within your means, and building up your own nest egg, you will have a much greater sense of control in the future. You’ll be able to make that magical moment really count.
To start 2014 off right, get rid of the excuses and start on your savings plan. For more tips to help you start saving this year, take a look at our post on How to Save $2,014 in 2014.
And through our partnership with America Saves, you can be rewarded with the opportunity to win prizes and rewards when you save money and pay off debt. Take the America Saves pledge and earn 100 bonus SaveUp credits today!
Written by Guest Blogger
Published: 13 January 2014