6 Lame Excuses Young People Tell Themselves Why They Can’t Invest
Most of the time, excuses are pretty harmless. But when it comes to not investing, or not investing enough, it can have serious consequences further down the road. Many young people are poorly prepared financially for retirement because it seems like an eternity away. The problem is it’s closer than you think! Below are 6 of the most common excuses that millennials use when it comes to investing,or rather, not investing.
1) I have too many bills
Nobody likes paying bills. No matter how much money you have, bills are always a necessary evil. The fact of the matter is, unless you’re able to cover payment of your monthly bills, investing isn’t a viable option. So what can you do about it? Well, you’d be surprised at how much spare money you have after your monthly expenses have come and gone. Try making a list of everything you buy each month and look for places to save. Live below your means and keep on top of your expenditure. Changing your spending habits and cutting back on everyday purchases is one of the easiest ways to find extra cash to channel into investment.
2) Learned helplessness
We’re all guilty of taking the easy way out; it’s just a part of human nature. It’s a strange phenomenon known as learned helplessness. We think that the odds are stacked against us at every turn. When you take the time to step back and re-evaluate the situation, it soon becomes apparent that this kind of thinking is nonsensical, counter-productive and just another lame excuse! The less you think you’re capable of doing something the less likely it is to become a reality. Take a look at the bigger picture, think rationally and prioritise. Do this and you can easily identify the steps you need to take to achieve your goals.
3) You only live once mentality
We’ve all heard it, and probably used the phrase ourselves at one point or another but ‘YOLO’ soon transcended into the vernacular of an entire generation. Whilst at face value embracing the fear that often stops us acting out upon on our greatest impulses sounds quite commendable, this way of thinking could actually reap ruin for your financial future. It’s nothing more than a way of justifying poor financial choices! Whilst it’s satisfying in the short-term, the long-term implications could prove stressful and place unnecessary financial pressure on you and those around you. Nothing in life is guaranteed, including financial security. Whilst everything may be looking great for the foreseeable future, you never really know what’s around the corner. Because of this, it’s always important to be prepared for any eventuality.
4) It’s too late
The other somewhat drastic outlook that young people appear to have is that they feel they’ve somehow missed the boat; they’ve side-stepped that crucial window of opportunity in which they could capitalise on their existing finances and provide for a better future. As the old adage goes- ‘It’s better late than never!’ The reality is, it’s never too late and you’re never too old to start investing. Even from your mid 30s onwards you can start pooling together a decent amount of money to invest towards your future goals. Whilst your financial future is still salvageable at this age, it’s really important that you start thinking about your future as early as you possibly can. The longer you wait before you start investing, the less time you have to accumulate money, and it’s less likely that you’ll achieve your goals.
5) I’m going to inherit a lot of money
It’s best not to bank your hopes and dreams on somebody else’s promise, even if they are your own parents. While you might think they have a lot of money at the time, you don’t always know what’s going on behind closed doors. There have been countless cases of parents passing insurmountable piles of debt on to their children, or even cutting them out of their will at the last minute. Furthermore, you need to account for the amount of money that the government will deduct from your inheritance. Estate taxes, legal fees… it all adds up!
It may be easier take the path of least resistance but it’s important to bear in mind the implications it could have for your financial future.They are more concerned with the here and now. It’s more tangible and seems like a much more immediate reality. It’s massively important, however, that you acknowledge the difference between what we think we can achieve and what we can realistically achieve. So what’s the moral of this story? Don’t rely on anyone else, not even your family!
6) I’m too busy
Perhaps and not surprisingly the most common excuse of all is “I’m far too busy to think about this.” Don’t let excuses get in the way of developing good investment habits. With time, determination and effort, you can overcome the obstacles that you thought prevented you from becoming an investor. All you need to do is start the investing process today. I promise, in 10, 20, 30, 40 or even 50 years from now when you retire, you’ll be glad you did.