Would you trade a cup of coffee for a million bucks? According to the website Passion Saving .com, if you skip something small - like a cup of coffee - and stick one dollar a day in the bank, you’ll be a millionaire in less than 40 years. Sounds simple - but most people DON’T save money. Why? Because they fall for money myths that just aren’t true. So, here’s the fix for the 3 most common financial excuses that are stopping you from making the small changes that add up to big bucks:
- I don't make enough money. Most people pay their bills and look to see what’s left over. In the meantime, we spend a lot of money on things that aren’t as important as saving. The fix here is to pay yourself first. Put at least 5 percent of every paycheck in your savings account before you pay any other bills. In 2 weeks you won’t miss the money and you’ll enjoy seeing your savings grow.
- The 2nd money myth that’s keeping you from being comfortable? Assets are the same as savings. It’s great to have equity in your house or a fat 401(k), but they don’t help you when the car breaks down. You need to have a stash of cash to get you through emergencies without borrowing.
- Saving means sacrificing the things you enjoy. The purpose of saving isn’t to deny you things like vacations. It’s to pay for them without borrowing money. A 24-hundred dollar vacation on a credit card costs at LEAST $3000 dollars if you pay it off in a year. But if you save $200 a month to go on vacation, instead of borrowing it, that means you’ll get to take one extra trip every 4 years for NO extra cost! If you’d like to go further, check out the tips at Passion Saving .com.
