I Can’t Understand Finance
You must stop telling yourself this lie. There are so many fantastic resources at your disposal that will help you boost your financial education. If you’re reading this article, you’re sitting on one of those valuable educational tools right now!
Take the initiative and start reading up on personal finance and how money works in the real world. Seek help from trusted professionals. Don’t be afraid to ask questions.
I Don’t Have Enough Money
Considering Millennial women make less than their male peers, lack the same level of financial literacy, and struggle with a high debt load, the most common excuse for not saving money might not seem like much of an excuse at all for many. Instead, it might feel more like a fact.
While you may not think you have enough money today to start saving, you do have the power to change your situation. Negotiate for a raise, consider finding a different position, work more hours, or establish some part-time work freelancing or consulting on the side.
Yes, it takes hard work to make more. But the rewards are worth your efforts.
I Have to Pay Off Debt First
Sure, you need to work to repay your debt. But it’s not the only financial priority that deserves your attention. Your twenties and thirties are your prime savings years. A penny saved today can be more than a penny earned tomorrow thanks to the power of compound interest over time.
You can put the bulk of the money available each month toward debt repayment. But set aside 10% or 20% for savings, too. It’s okay to towards more than one financial goal at a time.
I Can Always Save Later
Unfortunately, you may not be able to — at least, not as easily as you could if you started now. If you start saving earlier, you can get away with making smaller monthly contributions to your nest egg than if you waited and tried to play catch up down the road. Again, let compound interest do the heavy lifting for you!
I Don’t Have Enough to Save and Buy What I Want
You need to prioritize your spending. And the money you put into savings is the highest priority “spending” you can do. Pay yourself first, and then use what’s left over to purchase something you want.
There’s a difference between wants and needs, and although it’s not always fun to put practical considerations ahead of going out with friends or heading off on a tropical vacation, saving for the future is a need we all share.
Image courtesy of gogirlfinance.com