Having financial excuses is all-too-common and causes many people to delay their financial literacy and their future financial health. According to The Associated Press-NORC Center for Public Affairs Research, two-thirds of Americans would struggle to scrounge up $1,000 in an emergency. If your friends, family, or even you are making money excuses or delaying taking your finances seriously, then this information is for them and you.
1. Personal Finance is too hard to learn
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However, the truth is, personal finance is not that hard. First, read some finance and investing books. Next, listen to some money podcasts in your spare time. Also, focus on one area of personal finance at a time.
2. I’ll worry about it later
With investing and saving for retirement, you can miss years of compound interest, costing you thousands of dollars and even years off your retirement. This is just by delaying saving and investing. Hell, I know people in their mid-30 are still not saving for retirement!
The point is, you have to get out of this thought process. The sooner you start something with your personal finances, the better. Even if it seems small or insignificant, it can have a big impact on your future. If anything, it gets you practicing and being consistent.
3. I don’t have time
No matter how busy you are or think you are, there is also some time to squeeze in for your finances. It might not be as glamorous or entertaining, but it’s incredibly important.
Even if it’s finding just 30 minutes every other day, this impact and time spent can make a world of difference. Prioritization will be crucial, but so necessary.
4. I don’t know where to start
If you do not know where to start, that’s completely fine. But don’t give up before you even start just because you have no clue how to go about it. Doesn’t matter where you start, just put something in motion. But if you do want to figure it out, understand what your goals are and write them down. Figure out a simple spreadsheet of what money comes in and what money goes out.
5. I don’t make much money and can’t save
Because you don’t make much money, doesn’t mean you couldn’t save anything or at the very least, start learning. You can find ways to cut back on spending, get my side hustle on, and put a savings plan in place. On top of it, you can find ways to boost your career worth so eventually, you can make more.
Don’t worry what your savings rate is, how much, or what others are currently saving. Focus on your progress and keep it moving.
6. Investing seems like gambling
It’s only gambling if you start blindly throwing money at stock or piece of real estate hoping for a massive payout. It’s why it’s so important to learn about investing, investing scams, read money books, and have a long-term investing strategy in-place.
The stock market, for example, will fluctuate daily, weekly, monthly, and yearly. The goal is to diversify that money between stocks and bonds and hold for the long-term.
The market will recover, grow, and compound interest will help your money grow. But you also need to be smart, and not go all-in on something. Start off small and build your investments over time.