Excuses for Not Saving

Tips for Avoiding Distractions and Starting to Save

Many Americans think saving for retirement is too difficult. Take a look at these common excuses for not saving and learn how you can work around them.

“I don’t have any extra money to save"

Are you living paycheck to paycheck? Try making a list of everything you buy each month and look for places to save. Stop buying your coffee every morning and make your own. Eat out one less time each month. Watch movies online instead of going to a movie. Changing your spending habits can lead to more change in your pocket. Cutting back on everyday purchases is one of the easiest ways to find extra cash to funnel into an investment account.

“I don’t know anything about investing"

Investing can be complicated, but you don't have to go it alone. An investment professional can help you design an investment plan to fit your goals and risk tolerance. If you contribute to a 401(k) or other retirement plan at work, your employer may offer educational programs that could help. There are many resources that can help you understand financial principles and investment basics. Keep in mind that investing involves risk, so there’s no guarantee you’ll reach your investment goals.

“I want to have access to my money”

If you’re worried about having access to your money, you should know that many investments are liquid. These investments can be turned into cash quickly. Treasury bills, money market funds1 and other short-term vehicles can give you fast access to your funds, although their earnings may not always keep pace with inflation. Investing in stocks or stock mutual funds, allows you to take advantage of the potential for earning higher returns. If you need the money, you could choose to sell your shares. Accounts held with brokerage firms often let you borrow against your assets.

“It’s too late to start saving”

It's never too late to begin investing for your future financial security. Whether you’re 5 or 35 years from retirement, boosting the amount you're saving may help you reach your goals and stay on track for retirement.

Take 10 minutes to use the On Your Side® Interactive Retirement PlannerSM to help set retirement goals, track progress and find ways to improve your retirement outlook.

Of course, the sooner you start the more money you’ll be able to potentially accumulate. The more you accumulate, the more it can earn through compounding over time.

Remember, investing for even a brief period is typically better than not investing at all.

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