Consequences of not saving
Published 05/25/2022 | Last updated on May 27, 2022
Saving has consequences beyond the fact of filling our pockets. Saving has effects beyond securing our future or covering ourselves against possible unforeseen events; broadly speaking, it increases the self-confidence and empowerment of the individual, although it is necessary to modulate the capacity to save so that this practice does not generate frustration and dissatisfaction.
The reason why the savings plans or methods you have tried so far have not worked for you is not really because they are deficient. You haven't been able to add the habit of saving money because you don't know how to do it correctly, and you don't know how to get money out of your control.
Apart from the soothing effect that saving has on the person in the face of unforeseen events and life changes, the ability to save and maintain it gives self-esteem and a sense of success, deepening one's self-fulfillment.
Although money can positively affect self-esteem, we must keep in mind that we are not worth the amount of our savings.
What are the consequences of not saving?
The nature of us human beings is to learn from our mistakes, so we don't make them again. When it comes to money, we make a mistake after mistake in the administration and management of our budget, which causes us terrible financial consequences.
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You will spend more than you earn
If you spend more than you make, you create debts, and the obligations will be costly. You will be deeper and deeper in the hole. You will use credit to finance your expenses by paying more than you earn, making your debt grow month by month. If you don't stop it, it will create a big hole in your finances.
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You won't know where you spend your money
If you don't know where your money goes, you may spend it on extra things instead of those things. If you don't record your expenses, it will be challenging to achieve your goals if you don't control how your money goes. You won't take advantage of bargains, and you may spend more money than you should.
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You will not save
You will pay others first and then yourself, instead of the other way around. You will not be able to invest and grow your money and make it work for you.
You will believe that your finances are the responsibility of the government or your boss, who does not raise your salary: You will leave your life in the hands of others, and you will live adrift and under the desires of others instead of taking control of your life and do what you want. You will accept abusive conditions and low salaries because you have no other choice. You will not see yourself as responsible for your income, and you will feel helpless in a hostile world, thinking that you are a victim of the system.
You will go into debt because you don't have enough money for all your expenses. You will live stifled and with a scarcity mentality. Everything will seem tricky and unattainable, and you will believe that you don't have everything you need to live well. Asking for credit will become a habit, and you will use credit to finance everything you want and to acquire liabilities, worsening your finances little by little.
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You will make unnecessary purchases
Keeping control of your finances will make you a more orderly person, and you will know what you have and what you need. You will have clear goals, and you will plan to achieve them. In this way, you will systematically avoid what does not lead you to success, and therefore, you will not spend money on things you do not need.
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You will forget about yourself
Money is not everything, and you should know that you can do the essential things in life without spending a single euro.
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You will live from day to day without worrying about your future and your old age
The consequence of this situation is that you will be stuck in what Robert Kiyosaki calls the rat wheel. You work, earn, spend and start again. Without realizing it, the years go by, and it gets more complicated and more complex. You have more responsibilities and more expenses, and as you have not set goals, you keep turning and turning on that wheel. You are not prepared or protected against unforeseen situations.
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You will think you are living like a rich person without being one
It's good to think and act like you're rich, but you can't spend like a rich person without having a rich person's income. If you do not control your finances, you will not be able to create wealth.
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You won't learn about finances
If you don't care about your money and learn about finances, you will miss opportunities and knowledge to evaluate and grow more. You will become an impulsive and unintelligent consumer. You will not be able to make better decisions about what you want money to do for you. You will not acquire more knowledge about products and services.
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You will not lead a healthy life
Not controlling your finances can negatively affect your health. The stress caused by debts will not let you sleep, you will not be able to choose a better job just because you need that money, and you will accept abusive situations, which will diminish your self-esteem and well-being. This will increase your visits to the doctor and the cost of medicines.
What are the causes of lack of money?
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The financial crises that are reflected in the lack of money result from incurring disproportionately in credits, spending more money than we have, and worrying more about the accumulation of goods than about sustainability in the long term.
At El Paisa Multiservices we want to help you with your finances in Hartford, CT. You can contact us if you have questions about our services.
By Ingenuity & Solutions
