Are You REALLY Too Broke to Save?

by Miranda Marquit · 0 comments

Do you think that you are too broke to save money? One of the excuses I often hear about why someone can’t save revolves around the idea that they don’t have enough money to make it happen. In fact, I used to be one of the people who insisted that I didn’t have enough money to save.

The truth, though, is that you probably do have enough money to save — at least a little bit. The key is in making it a priority.

Americans Think They Can’t Afford to Save

According to a recent report from GOBankingRates, 37 percent of Americans are setting a goal to save this year, but many of them don’t think that they will be able to meet the resolution. Essentially, many Americans are already admitting defeat — before January is even over.

So, why do many Americans feel like they can’t save? According to the survey, the number one reason that consumers say they can’t save is that they have insufficient income. The next biggest reason is unemployment. While a case can be made that it’s difficult to save when you are unemployed, the reality is that insufficient income probably isn’t the best reason not to save. Rather than assuming that you don’t have enough money to save, the best thing you can do is to start creating a better habit of savings.

How to Start Saving — Even If You Don’t Have Much Money

So, if you don’t have much money, what can you do to start saving? The important thing is that you just get started. Too often, we get hung up on the idea that we don’t have enough money to start saving, we throw up our hands, and we do nothing. I know. I’ve been there. However, it is possible to change your outlook.

In order to start saving, the first step is to identify your expenses. Are you spending on things that you don’t need to spend on? How much money do you waste each month? Be honest about the way you use your money. If you have enough to go out to eat four or five times a month, you can cut back and find a few dollars to set aside.

One good way to start is to look for small ways to start saving. Can you set aside $1 a day? What about $5 a day? It doesn’t seem like a lot, but every bit helps, and the idea is to start identifying ways you can either cut your spending or make more money (or do both) so that you can save. It also helps you build a good habit. Make setting aside money a priority, and you’ll be in better shape going forward.

As you get used to saving, you can gradually increase how much you set aside until you are setting aside a more significant amount of money each month.

Don’t get caught by the myth that you are too broke to save. Even if you only set aside $10 a week, you are making progress. Long-term you’ll have to boost that, but as a starting point, any small amount is better than nothing.

Bonus Tip:

Did you know that you can save money with Netflix? Even if you don't plan on using the service, you should at least sign up for the Netflix free trial here to get some free movies for a month.

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