Trying to save money? Chances are that one of the below lies is impeding your success.
When trying to save money, we often tell ourselves a few ‘small lies’ that inevitably end up having great consequences on our savings, motivation and progress towards our goals.
I won’t bore you with the ‘little things add up’ speech, but the lies that we tell ourselves when it comes to saving money need to be acknowledged in order for us to move on and allow us to save money with greater discipline, and force, than ever before.
The below scenarios (or lies we tell ourselves) have been carefully thought about. The hope on my part is that next time you hear yourself saying or thinking something like this; you stop, reassess the moment and hopefully make a smart decision that helps you continue to save money without eating into your savings account.
I can ‘borrow’ money from my savings account and simply repay it next time I get paid (and I will add a little extra to make up for it).
If you take money out of your savings account, regardless of whether you repay it and add a little extra the next time you get paid to say ‘sorry’- you are still going backwards.
Digging into your savings and trying to make up for it later means you are treading water for longer. Your savings will not grow as fast as you like and the balance will forever be behind where it could have been had you of opted to not dig into your savings and instead continue to save money on top of your original balance.
If you can afford to ‘add a little extra’ to apologise to yourself – you really need to stop getting yourself into this situation and instead do a ‘feel good deposit’ that is a way to to celebrate a month with no withdrawals by adding in a little extra.
Quick tip: If you find yourself constantly saving money only to withdraw it again, consider saving less. To me, it’s better to save $5 per fortnight than $10 only to withdraw the extra $5. It hurts motivation, so save what you can realistically afford not to touch.
I really need this money for a purchase. It is urgent and I can’t wait any longer to buy it.
Isn’t it funny how we can live our lives without a cent of savings, however the moment we do have a cash stash that we have worked hard to save for – we find things that need to be purchased, often urgently?
As consumers, we are very good at watching advertising and seeing people with certain products or purchases (such as friends and family) and then finding ways to assimilate that purchase into our own lives via imagination. We imagine how much better things would be if we too had that product. We like to imagine ourselves using it, benefiting from it and all of a sudden – something we never knew we needed, is now an urgent purchase.
Truth be told, we all need to really re-assess the word ‘urgent’. We often use it to simply get what we want. Much like in an office environment, how many tasks are given the status of ‘urgent’ by your co-workers? Do they really know whether the task is urgent or is it simply urgent to them?
Saving money is urgent. In fact, it is much more urgent than anything else. Without money we cannot eat, live or put a roof over our head. Prioritise saving money ahead of any other purchase and if you find it difficult – implement the 1 week strategy.
For example; think you need to buy something? Instead of going out and buying, mark the date down in your calendar and wait seven days. If after a full week you still REALLY need the purchase – only then consider it.
Quick tip: If you really don’t trust yourself not to withdraw your savings when these ‘urgent’ purchases pop up, consider using a term deposit to lock the money away. Alternatively, a product like a ‘notice saver’ that requires 30, 60 or 90 days notice might be wise.
It’s better that I use the money in my savings account then go into debt.
This is likely just masking the fact you are justifying the purchase to yourself. While your logic is right that you should save up for a purchase, diving into your savings account at the drop of a hat for a purchase is not the right way to go.
Consider the point above about ‘urgent purchases’ before making a decision to buy. If you forever choose to dig into your savings to avoid debt, while technically smart, you are using this lie (or excuse) to continually justify your non existent savings account.
Don’t let smart advice hinder common sense. People often use good advice on money to mask their poor motivation or ability to stay strong and complete goals.
Quick tip: Opt to never see debt as an option. People choose not to eat certain foods their whole life, why can’t you be the one who chooses to never take out a store credit card or never use credit? To many, debt is an option they can call on. Try and be strong and remove it as an option altogether.
What other fibs do you tell yourself that impact your savings?
I really want to gather a strong list of saving money fibs that we tell ourselves. Can you please share with me any common things you tell yourself that justifies why you aren’t saving money? Please do so in the comments below.