Saving for the future is straightforward, yet many people avoid it. Why is that? Well, there’s a whole list of reasons why people dodge saving. This article dives into some of the most common reasons people don’t save, and why each of these excuses can get in the way of a better, more secure life.
Why People Don’t Save for the Future
Let’s start with a quick look at some of the main reasons people give for not saving. Some of these reasons might sound familiar. Others may even be a bit funny. But all of them can stand in the way of building a secure future.
1. The “Nothing Bad Will Happen to Me” Mindset
Many people feel invincible, convinced that nothing bad—like illness, injury, or job loss—will happen to them. Why prepare for something you don’t believe will ever occur? But here’s the thing: life’s surprises can happen to anyone. Preparing for the unexpected is actually a smart way to be ready for anything. And when you’re prepared, you’re less stressed, no matter what life throws your way.
2. Living for the Moment
We’ve all heard “I want it all, and I want it now!” Humans are the only creatures who go beyond satisfying basic needs. We buy things we don’t need, and sometimes don’t even want, just because we can. But living only for the moment can mean sacrificing a future of freedom and comfort. By setting aside just a little bit now, you can still enjoy life today while preparing for a happy, secure future.
3. The Entitlement Trap
Some people believe they deserve to have whatever they want, whenever they want it, without making any sacrifices. Advertisers play on this mindset, persuading us that we “need” their products to be happy. The truth is, learning to live within our means, no matter what those means are, brings a sense of satisfaction money can’t buy. And that means more money in your pocket for when you need it most.
4. Saving is Old School Thinking
“Saving is for older generations.” Have you ever heard that one? Many people feel saving isn’t for them, or that it’s outdated. But saving money will never go out of style. In fact, being wise with your money, no matter your age, gives you options. Options to travel, to change careers, or to retire comfortably. So, maybe being “old school” with your savings isn’t so bad after all.
5. “What’s the Point?”
“What if I save all my life and don’t live to enjoy it?” This kind of short-sighted thinking can lead to a lot of missed opportunities. No one knows exactly how long they’ll live, but isn’t it better to be prepared in case you do live a long, healthy life? By saving consistently, you’re setting yourself up for peace of mind, regardless of how life unfolds.
6. Learning to Save Feels Overwhelming
Investing, saving, and understanding compound interest can feel like learning a new language. But like most things, the hardest part is getting started. Once you do, you’ll find that small, steady contributions make a big difference over time. With simple tools like RRSPs and TFSAs, Canadians have straightforward options to start building their future wealth today.
7. Spending is Fun, Saving is Boring
Human nature craves instant rewards, and spending gives us that. Saving, on the other hand, feels slow and unexciting. But here’s a thought: what if you could make saving feel rewarding? Try setting small savings goals, and celebrate each one you achieve. You might be surprised at how satisfying it feels to watch your savings grow!
8. Procrastination
“I’ll save later in life and catch up.” It’s tempting to think you can put off saving, especially if retirement seems a long way off. But starting to save now, even a little, can make a huge difference in the long run. Thanks to compound interest, the money you save early has more time to grow. Your future self will thank you for getting started today.
9. “I Don’t Have Any Money to Save”
Sometimes, people feel like they have no money left over to save after covering their expenses. But if you look closely, there are often areas where spending can be trimmed. Try reviewing your wants versus your needs. Cutting back on non-essentials, even a little, can free up money to put towards your future.
Take a look at the 50/30/20 budget or the 80-10-10 rule.
10. Expecting an Inheritance
Some people bank on inheriting money from family. Waiting around for an inheritance isn’t a financial plan—it’s wishful thinking. Besides, wouldn’t it be better to build your own wealth and feel proud of what you’ve accomplished? If the inheritance comes, great, but in the meantime, you’ll have taken control of your own future.
11. Following the Herd
If no one else is saving, why should you? This mindset is driven by peer pressure. The fact is, most people regret not starting to save sooner. Don’t let the choices of others determine your future. By stepping up and saving, you’re setting yourself apart in a positive way.
12. Keeping Up Appearances
Everyone has that friend with the luxury car, the big house, and the expensive clothes. But do they have the savings to back it up? Appearances can be deceiving, and keeping up with others can drain your wallet. Consider what really matters to you and make your choices from there. True confidence comes from being financially secure.
13. Fear of Ridicule
No one likes to be called a cheapskate, penny pincher, or scrooge. But people who save for their future aren’t cheapskates—they’re smart. Remember, your financial security is for you, not anyone else. Saving is a personal choice, and you don’t have to answer to anyone about it.
14. Fear of Being Abandoned by Friends
Some people worry they’ll be abandoned by friends if they don’t keep up with their spending. True friends won’t judge you for making wise choices. In fact, they’ll respect you for it. And who knows? You might even inspire them to follow your example.
15. The Rescuer Syndrome
Some people believe they’ll always have a financial safety net, whether it’s their parents, friends, or even a GoFundMe campaign. But relying on others to rescue you is risky. A far better plan is to build your own safety net so that you’re not left stranded if help doesn’t arrive. Can I Retire on the Proceeds of my Parents’ Estate?
16. The Future Is Hard to Imagine
Most people struggle to visualize what their life will look like 30 years from now. But saving for the future can actually help you picture it. Try imagining what you want your life to look like in retirement. By saving for that vision, you’re one step closer to making it a reality.
Why Saving Matters
None of these reasons justifies skipping out on saving. When you save, you’re giving yourself peace of mind, security, and a better chance at a comfortable future. By starting small and being consistent, you’ll find that saving doesn’t have to mean missing out. Instead, it means you’re putting yourself in a position to live the life you want—today and in the future.
Start Saving Today
- Track your spending: Look at where your money goes and see if there are areas where you can cut back.
- Set up automatic savings: Many banks let you set up automatic transfers to a savings account. Set it and forget it!
- Start small: Even $10 a week adds up over time. It’s better to start with a little than not at all.
- Stay focused on your goals: Remember, saving is about building a better future. Keep your eyes on the prize.
Saving might not be easy, but it’s worth it. By taking small steps today, you’re building a future you can look forward to. Remember, your future self will thank you!
In my E-books (“Water Barrel” and “The Balance”) I discuss simple methods to live sensibly for today, take charge of your financial affairs, and invest safely for the long term. For more information please visit David Penna Amazon.
Disclaimer for ManageYourMoney.ca
The information provided on ManageYourMoney.ca is intended for educational and informational purposes only. It should not be taken as financial advice. The opinions shared are those of the authors and are meant to encourage sensible financial habits and decision-making. We recommend that you do your own research or consult a certified financial advisor before making any financial or investment decisions. All investments come with risks, and there is no guarantee of success. Past performance is not a reliable indicator of future results. Always consider your personal financial situation and risk tolerance before pursuing any investment opportunities.
As always, we are not a qualified financial advisors. We just relate financial management to our own experience which may not resemble yours at all. Advice is frequently worth exactly what you paid for it. Most of ours came from expensive experiences.
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