Slack Saving Excuses

Most debt is caused by people losing control of their finances, whether their circumstances change or they just didn’t develop proper money management skills to begin with.

 If this sounds like you, don’t panic. It is just as easy to get out of debt by slowly changing your money management skills over time.
 

One great habit to develop is your ability to save money. The more money you save of your own, the less you will need to borrow, thus reducing your need for debt in the first place.

Everybody wants to save money, but only a select few get it right. We have come up with the most common slack savings excuses and given you a way to overcome them.

“By the time I get through the week, there is no money left to save”

Let me guess, you don’t have a budget do you? I didn’t think so. If you are only scrapping through the week and hanging on for your next pay day, you need to sit down and seriously reconsider your expenses. Where is all your money going? That is the question you need to be asking yourself. For the next month, write down all your expenses. At the end of the month you will be surprised by the money you are wasting. Look at the expenses you could cut back on or eliminate and make a concerted effort to put some money aside for savings each pay day, that way, you won’t be tempted to spend it through the week.

“I am paying off too many debts to be able to save”

If you are managing to pay your debts with just enough money left over to live, you are headed down a slippery slope. If you don’t have enough money left over to save, you probably won’t have enough of a reserve fund to cover your debts should anything happen such as illness, injury or job loss. It’s time you spoke to a personal debt management specialist, such as Debt Rescue, to see how you can get on top of your debts before it is too late. You might find a simple consolidation will give you enough room to move to be able to money aside in case of an emergency, and you could be out of debt sooner.

“I try to save, but I just end up spending the money I put away”

The reason we save is so we can spend it eventually, the trick is to set a goal. If you have something specific in mind, like a holiday, it is easy to know how much to aim for. But if you are saving for the sake of saving you can set some smaller goals, like for every $1000 you save, you get to spend $100 on something special, like dinner in a fancy restaurant or an expensive new bag. This will encourage you to continue to save and the reward will put a stop to splurge spending.

“I would like to save, but my partner won’t stick to the budget”

The key to being successful in finance is to hold yourself accountable. While it is important to have support from your spouse and family, you shouldn’t let their actions hinder your ability to be financially responsible. If you have a joint account with someone who is making it hard for you to save, take affirmative action. Open a high-interest account without a redraw facility so once your savings have been deposited you won’t have access to them for a set period of time. Don’t keep this account a secret from your partner, let them know how it works and encourage them to put their savings into it as well. Whether they decide to participate or not, you know your savings are safe and sound.

For more advice visit www.debtrescue.com.au or call 1800 00 3328.