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Why do people insist that they can't save anything?

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    #16
    Personally I don't think being "mature" has anything to do with saving. I think it all boils down to simply having will power, some have more will power than others. My brother is 6 years older than, in his entire existance he has never saved one penny. His saving account has about 52 cents in it at the moment. My brother is very mature, but has a extremely difficult time saving, he said it himself, he said mentality, I can't save.

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      #17
      There's only 2 reasons that you can't save money.

      1. You don't want to.
      2. You can't.

      If you don't want to, thats the end. You can't pursuade someone that doesn't want to save money to save money

      If you can't, then that's that also. You may be working hard at your job but if your earnings are poor and can only fill your basic life, you can't do anything about that as well.

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        #18
        Originally posted by MoneyTrev View Post
        There's only 2 reasons that you can't save money.

        1. You don't want to.
        2. You can't.

        If you don't want to, thats the end. You can't pursuade someone that doesn't want to save money to save money

        If you can't, then that's that also. You may be working hard at your job but if your earnings are poor and can only fill your basic life, you can't do anything about that as well.
        If your earnings are so poor that you aren't able to save anything at all, then I think that individuals need to make some changes. For example, get an extra job to supplement a full-time job to increase the cash flow.

        I agree though that some people just don't have the willpower to save money.

        Just my opinion.

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          #19
          My spouse is in this boat. She has 401k, Roth and a 529 for DD. I have to say I'm lucky that she's not into Gucci and Prada stuff and like me she doesn't seem to be spending money on frivilous stuff either. I feel that really she's entitled to spend some money on good quality clothes, health etc but every once or twice a year she asks me for money because she has none in her account and all along I'm under the impression that she's not wasting money and she's saving part of her paycheck. I think the last expense was the Invisilign teeth straightner she got to the tune of $5k or so which again wouldn't be a bad thing, it's not like she went and bought a $5k Prada bag but if it were me I would've saved up for it before I went and spent the money. Of course, she put it on her credit card which recently jacked up the interest rate to 16% !!! Luckily she said she transfered her balance to a 0% card.

          She gets annoyed when I 'lecture' her on how I would've done something or that she should have a bank balance buffer of $1k or so and never let it go below it unless it's an absolute emergency and even then replenish it immediately afterwards. Instead she says that the groceries/utilities are more expensive now and that's why she doesn't have any savings.

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            #20
            I know so many people who are filling a void or a hole with buying stuff. IT ruins some people's lives, and sadly some of them don't seem to be able to change yet.
            I think the culture is shifting. My dh's father retired from the big three. He took 30 years to pay off a mortgage he got in his 20's then had debt we helped them consolidate. They spent every dime they made and then charged whatever else they wanted. They never heard of a 401K or knew what the difference between principal and interest is. WAnt to go to the casino again? They went. WAnt to buy tons of stuff? They bought. That pension check will be there for some people til they drop. I see it now repeated in my dh's brother. Him and his wife "work" for the big three on the line. They have so much expensive stuff, 2 time shares, about 7 long vacations a year, a 10 grand cruise planned. pension check will be there. no worries.
            For the rest of the world? Oh yea it's reality. lol It is a cultural shift of take care of yourselves, no longer the 30 (or 20 in come cases) and out, company take care of me.

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              #21
              Originally posted by Goldy1 View Post
              I know so many people who are filling a void or a hole with buying stuff. IT ruins some people's lives, and sadly some of them don't seem to be able to change yet.
              I think the culture is shifting. My dh's father retired from the big three. He took 30 years to pay off a mortgage he got in his 20's then had debt we helped them consolidate. They spent every dime they made and then charged whatever else they wanted. They never heard of a 401K or knew what the difference between principal and interest is. WAnt to go to the casino again? They went. WAnt to buy tons of stuff? They bought. That pension check will be there for some people til they drop. I see it now repeated in my dh's brother. Him and his wife "work" for the big three on the line. They have so much expensive stuff, 2 time shares, about 7 long vacations a year, a 10 grand cruise planned. pension check will be there. no worries.
              For the rest of the world? Oh yea it's reality. lol It is a cultural shift of take care of yourselves, no longer the 30 (or 20 in come cases) and out, company take care of me.
              That is soooo my parents. After living in the same house for nearly 30 years, they sold it for $110,000. After they paid off the mortgage they had about $8000 left. They financed everything into that house over the years. Every time the credit cards were too high, they'd refinance the house.

              Now, my dad's in a nursing home and mom's trying to scrape by. They have less that $8000 in cash (they only have that because I started running their finances) to last my mom the rest of her life...she's 63. She STILL spends more each month than she brings in but she has stopped her recreational shopping habit. That habit killed them financially all those years. Now if I could get her to give up her expensive dog ($250/month in daycare bills!) and move into a smaller apartment ($200/month less) she'd be in a positive cash flow position. But I can't get her to do either one of those things...

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                #22
                It's really frightening how many people choose not to save. My mom didn't have much, but she still found a way to put a few dollars back here and there. But, she was of the generation that grew up during the depression and I think that certainly made a difference.

                Many of our friends make good money, but claim they can't save. Yet, one friend in particular buys many DVDs each Tuesday when they come out. He bought a new Flat Screen (60 inch) and put in on his credit card. He denies himself very little, but claims he can't save. He, by himself, made more money than my dh and I did together. He even made more money on his pension than the two of us did when we both worked (dh is now retired). Yet, his house is not paid off, he owes on both cars and the list goes on. He claims there isn't enough money left over to save. When I suggested we take turns eating at each other's homes (we each provide a few dishes so no one has the whole burden) he thought it was a good idea when they came to our house. We haven't been invited there; instead he paid for our dinner at a pizza place. When we talked finances I said the easiest way to save is to stop spending which means don't go into the stores and "browse". He got right to the point: I don't want to. Bottom line!

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                  #23
                  I don't know, but dh and I finally came to the conclusion that people who don't save are always in some kind of trouble that they can't handle. So we had our employers begin to deduct money for our 40lk's, began to save our change and stockpile food. These small changes have saved our hides many times. We really need to start an emergency fund though. This would make a good new year's resolution. Thanks for starting this thread.

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                    #24
                    Little story demonstrates this problem really well... I've been staying with some friends of mine for the holidays. They're relatively well-off, so they are able to indulge themselves and my friend (their only son, who is like a brother to me) on a somewhat regular occasion. His parents are quite responsible with their money (they mentioned that she has recently lost over $500k from her 401k, indicating fairly advanced savings), but my friend isn't quite as money-smart yet. Leading up to christmas, my friend was dying for a set of skis (goes to school in CO), and a high-end watch ($500-$1000 range.... however, he's one that would keep it for a lifetime). After over a week of going back and forth with his parents, he and I were out with his mother one evening and we finally convinced him to wait on the watch, and actually save up for it, then to look at buying it a few months down the road. He's now actually pretty sold on the idea that he can save up a raise he's getting soon, then have enough to buy whatever watch he wants.

                    The dollar figures and reasoning behind it are a bit staggering (IMO), but if you knew him, you'd see that him really buying into the idea of saving his money up (even if just to plan on spending it later) is a minor miracle. We're hoping that he gets the clue that saving his money can be helpful to him.... I'm still gently working him towards this, as are his parents. It'll be interesting to see how things play out in a few months, and later on beyond that....
                    "Praestantia per minutus" ... "Acta non verba"

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                      #25
                      Well as someone who says she can't save, a lot of it has to do with the fact that my debt exceeds my income. I don't have anything left over. I'm working on eliminating some of my debt though so I can save. And if a bill is ever less that expected I make sure the left over goes towards an advance on that bill (or another one if a larger one with heavier interest is giving me a headache).

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                        #26
                        Originally posted by SacredFaerie View Post
                        Well as someone who says she can't save, a lot of it has to do with the fact that my debt exceeds my income.
                        Actually, most homeowners have debt that exceeds their income, so that alone isn't a reason. Many college grads today also have debt that exceeds income, at least early in their careers. I certainly did. That never stopped me from saving, though. What really matters is how large the payments are relative to your income.
                        Steve

                        * Despite the high cost of living, it remains very popular.
                        * Why should I pay for my daughter's education when she already knows everything?
                        * There are no shortcuts to anywhere worth going.

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                          #27
                          Good point. I try to save when (if) I have extra but in a few months I generally end up dipping into it to cover myself. I don't end up having savings but when I need money I have it.

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                            #28
                            Mym om was frugal, and still is. I tihnk I learned it from her. I rubbed off my frugalness to my dh. It's not sexy to be too frugal when dating, but we consider ourselves kinda partners in frugality. WE still have fun, and have our splurges. WE most value our TIME together, and our time together is better if not worried about debt, and I want to be with him in retirement sometime before 70..LOL....
                            I made one splurge on a designer purse this year and I probably won't do it again b/c I ended up changing my mind about liking it. lol oops, and to resell it on e bay would probably cost me $40 in fees. lol

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                              #29
                              Originally posted by SacredFaerie View Post
                              Good point. I try to save when (if) I have extra but in a few months I generally end up dipping into it to cover myself. I don't end up having savings but when I need money I have it.
                              If you want to get traction towards getting out of debt and saving for the future, you will have to live on less than you make, at all times.

                              To some this may mean completely changing their lifestyle, lowering their housing costs, transportation costs, entertainment costs etc. Some can use future raises for debt reduction and investing only.

                              To get a clearer picture, I recommend reading The Total Money Makeover by Dave Ramsey and The Automatic Millionaire by David Bach.

                              Getting yourself into a position to save first while living on less than you earn is the key to winning with money.

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                                #30
                                Originally posted by SacredFaerie View Post
                                I try to save when (if) I have extra
                                Here is your problem. If you wait until you have "extra" to save, you'll likely never save, because there is never any extra. You need to save first. Perhaps you've heard the expression, "Pay yourself first." Even if it is just putting $5/paycheck into the bank, you need to get in the habit of saving something each time you receive money before paying any bills or doing any other spending. Ideally, you need to work up to living on 80% of your income and saving 20%. Don't expect to start there, though. It took us years to hit the 20% level after first paying off 2 cars and over 100K in student loan debt.
                                Steve

                                * Despite the high cost of living, it remains very popular.
                                * Why should I pay for my daughter's education when she already knows everything?
                                * There are no shortcuts to anywhere worth going.

                                Comment

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