I go to this message board on finances called savingadvice. Recently a fellow poster asked the question “Why do people insist they can’t save?”
There were many answers including
- lack of self-control
- don’t want to
- maturity
- not interested
- and nothing to lose mentality
That last one struck a nerve with many of the savers on the board. Many people don’t save because if they have nothing, then they have nothing to lose and can depend on help from others (government, friends, family, etc) to bail them out of their problems.
If a financial problem occurs they can declare bankruptcy. Or if they lose their jobs they could walk way from their home because they put nothing down. Or they can get help from agencies because they have a low net worth.
I think that perhaps in many cases it’s true. That people don’t save because they choose not to. But I also believe there are many cases where people can’t save because they made poor decisions. Decisions like a too expensive house, too expensive car, too many children (dare I say that?), or choosing to stay at home and not work.
I’ll get crap, but the truth is saving is a way of life. Something you chose and prioritize. There is nothing wrong with choosing not to save, but it still is a conscious decision rather than effect of your life. I think if you value other things more than savings it’s undestandable. But blaming the fact you don’t make enough income, is likely not the reason.
What are other reasons people give for why they can’t save?
18 responses so far ↓
1 dogatemyfinances // Jan 26, 2009 at 9:08 am
Eh, saving is not necessarily moving you in the right direction if you’re taking on debt WHILE saving. Me, I’d rather pay down debt than save very much, and I did. So, I chose not to save and to pay down debt instead.
2 Miss M @ M is for Money // Jan 26, 2009 at 11:23 am
I got into debt and didn’t save cause I wasn’t thinking about the future and was only concerned with my immediate pleasure. But I have way too much pride to ever consider handouts, welfare or mooching off of family an acceptable fall back plan.
3 Brian // Jan 26, 2009 at 12:00 pm
I hear people say it takes to much planning to save too. Much easier to spend then make budgets and plan future expenses.
4 Mary // Jan 26, 2009 at 12:00 pm
I hear this so much from my coworker about how he can’t save. He told me he and his wife dropped out of Dave Ramsey’s FPU because they couldn’t do the first step (save $1000). I was like B you just do it one dollar at a time, his response was that would take to long. Then I said, well take your bonus this year and put in savings, no that is for christmas. I gave up after that. We received one month’s salary for our bonus this year and you are telling me that you need that to buy christmas presents for your two girls.
Saving has to be a conscious choice. Something that you do, not something that just happens. I think a lot of people who don’t save don’t want to make that choice or that effort. My DH never saved before we got married. Because it was effort and the instant gratification was more his thing.
5 fengshui // Jan 26, 2009 at 1:24 pm
“We received one month’s salary for our bonus this year and you are telling me that you need that to buy christmas presents for your two girls.”
That family spent a month’s salary on christmas presents for their 2 kids???? No wonder this country is going down the toilet. That is terrible…….
People make a choice to save. It is that simple. Even if it is only $50 a month, starting out slow, it can be done.
6 Mary // Jan 26, 2009 at 1:35 pm
“That family spent a month’s salary on christmas presents for their 2 kids???? No wonder this country is going down the toilet. That is terrible…….”
Yeah but “the Wii was used and the girls really wanted mp3 players and they were cheap and, and, and” .
No wonder they dropped out of FPU.
7 JB // Jan 26, 2009 at 1:48 pm
“it still is a conscious decision rather than effect of your life”
I believe this too… if the person has been educated in personal finance. But, if they really haven’t taken the time to learn PF, then it could just be an effect.
8 Kristy // Jan 26, 2009 at 2:01 pm
People don’ t know how to save and they just plain don’t want to. They want material things more so they buy them.
9 SugarMag // Jan 26, 2009 at 4:10 pm
I dont like saving and am not good at it. So…to counteract this I make my savings deposits a “bill” on my budget ledger. For some reason, this makes it seem like not saving. I pay bills w/o a though and w/o discomfort, so it works with any line item that is a “bill”.
The before I get my check retirement savings helps immensely too. That doesnt’ hurt b/c I never see the cash.
10 Kristy @ Master Your Card // Jan 27, 2009 at 1:04 am
People make excuses about why they can’t save because it’s easier than taking responsibility and actually doing it. It’s the same reason people make excuses for a lot of things in their lives – “I didn’t get that promotion because…” “I can’t lose weight because…” The truth is, they could. They choose not to.
I agree with you on it being a conscious decision rather than an effect of someone’s circumstances, but I don’t agree that it’s ok not to save. I, for one, don’t want to be paying people’s way with my tax dollars. I have no problem with social welfare programs for those who need them, but for someone who simply chooses not to save because it’s easier to get the handout, I think that’s ridiculous. My opinion is that everyone should save something. Will they? No, and I realize that. But I don’t think it’s right to tell those people it’s ok, either. Just my opinion.
11 LivingAlmostLarge // Jan 27, 2009 at 10:20 am
Dog, good reason is to pay off debt. Do you think that however, it depends on income? That a higher income like yours with more disposable monthly income makes it easier to pay off debt without saving? Versus someone on a very tight income/budget?
I agree it does take planning. So a lack of planning versus say lack of income?
12 SE // Jan 27, 2009 at 5:07 pm
no you aren’t allowed to think people don’t save/are poor because they have (too many) children. it’s taboo. which is exactly why it happens so often. it’s just that on average wealthy people are a little bit closer to the abortion clinic, can afford birth control, and are less likely to be befuddled by a lower-class morality.
13 LAL // Jan 27, 2009 at 8:50 pm
SE it could be due to having a lot of children. I won’t comment because as long as the kids are loved, fed, and clothed without a handout it should be enough right?
14 SE // Jan 27, 2009 at 10:24 pm
enough to sustain their right to have them, sure. but it represents a risk that isn’t allowed into conversation, which is unfortunate since I think poverty is usually a consequence of poor risk management.
you have to worry when you aren’t allowed to discuss both sides of an issue. recommending that a poor family stop having children (or never to start) is not acceptable since children are inerrant blessings-that is, cheap, expendable soldiers for some religious or economic ideology.
15 LAL // Jan 28, 2009 at 8:30 am
Then having children becomes a class issue. Who decides when you have enough to “afford” children? Is it fair?
16 SE // Jan 28, 2009 at 12:05 pm
people themselves, exercising their freedoms, make it into a class issue when they become trapped into intergenerational poverty. or they make it into a class issue when they defer childbirth, save a portion of their paychecks, etc…it’s all about the choices you make based on whatever PF education you can scrap together early in life. I somehow knew not to go around knocking up girls when I was 16. some people don’t get that message clearly.
people obviously should be free to do what they wish, but that freedom comes with a price-responsibility. I’m just saying that part of PF education should be a conversation about the risks of having children at the wrong time. or having too many.
17 LivingAlmostLarge // Jan 28, 2009 at 12:36 pm
I think the problem isn’t necessarily can you afford a child. If you are talking about 16 year olds knocked up. Rather can you even be a parent? Are you even ready to parent? Are you going to dump your child onto your parents?
I know 20-somethings not ready to be parents who accidentally got preggers. Then dumped the kids on their parents anyway.
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