Money Personal Finance Saving

Popular myths about saving money every spendthrift should know

saving money myths

What is the most common excuse that you hear from a spendthrift? 

“I am bad at saving money. No matter what I do, I end up spending money. I think even money does not want to stay with me.” 

That is the biggest excuse that one can ever give. No one can be bad at saving money.  In fact, one of the most popular myths about saving money is that some people are just pathetic at saving money. But the truth is that there is always a scope to save money. The key point is the mindset. One needs to have a mindset to save money.

If you are s spendthrift, then it must be tough for you to save money. However, if you work on your personal relationship with money and take steps to improve it, then you too can save money. The first step being debunking the popular myths about saving money, which we will do today. So, let us start debunking some well-known myths about saving money. 

Myth no 1: I will start saving money when I have lots of money 

Theoretically, it is easy to save when you make a lot of money. But practically, it is tough to save when you earn more money than before. And that is due to lifestyle inflation. When you make more money, you tend to get into lifestyle inflation. Instead of buying one pizza, you may end up buying two pizzas. Instead of buying a dress at a moderate price, you may buy an expensive branded dress. 

Lifestyle inflation usually happens when you get a better job or a pay hike or a financial windfall, etc. Basically, it happens when you experience an increase in income. Instead of saving the extra money, you use it for having comforts in life. 

Myth no 2: It is not possible to plan your financial future when you have debt. 

It is yet another misconception. It is possible to plan your financial future when you have debt. What you have to do is make a plan to repay your debts. And you do not have to wait for a long time for that. You can adopt a frugal lifestyle to save money on various areas of your life. You can create a budget and explore the areas where you can cut down expenses. You can also enroll in a debt relief program to pay back your creditors. It can help you to streamline your finances, pay back creditors, and save money at the same time. So, all these options are there. 

When you are in debt and you try to pay it off, you get the biggest financial lessons of your life. 

Myth no 3: Big sale offers help one to save money. 

It is not necessarily. The sale offers are good. But if you buy things just because they are on sale, then you are wasting your money. You have to shop smartly. You have to look for attractive discounts on the things you need and buy them accordingly. 

Conclusions 

Some people are born savers. They know how to manage and save money. Seldom do they make mistakes and waste money. The scenario is completely different for the spendthrifts. Either they love to spend their money or they do not know the art of saving money. If they keep on spending money like before, then they cannot pay off debts or build an emergency fund in the future. The economy is shaky. It’s high time spendthrifts start working on their relationships with money. Otherwise, they will not have enough money for retirement too. 

Spendthrifts often believe in the three myths discussed in the article because they do not have the habit of saving money. Pandemic has taught the importance of saving money. It is high time spendthrifts change their attitude towards money, debunk these myths, and start saving money. And the first steps start with selecting one area of finance where they want to improve.