4 Wrong Beliefs People Have About Savings

The financially intelligent understand the need and importance of putting away some money in the form of savings. However, many exist that do not as much believe in putting away a portion of their money for later use. These persons just like those who save, do not save because of certain beliefs they hold on to.

A number of the beliefs these people have about savings, at the mere look of them may seem rational or logical but a careful consideration will show the lack of merit in such beliefs. In this post, I will be sharing with you 4 of these beliefs, and suggestions on how to get over them if you currently hold such.

This probably is the most common belief held by people on savings. Many who do not save choose not to because of their belief that tomorrow is not certain and as such, no one can effectively save for it. These people fear that one bad thing or the other could occur tomorrow and either they lose their lives or they lose their savings. So, they would rather enjoy their money today, rather than have another enjoy it for them if something happens to them tomorrow.

If you hold this belief, you need to understand that the fact that tomorrow is not sure is the primary reason or number one reason why you need to save.

God Will Provide Daily Bread

There are those whose reason for not saving is simply based on their ‘faith’ in the ability and promise of God to provide for their daily needs. Many who hold this belief usually draw their backing from the teachings of Jesus Christ in the bible on living a ‘worry-free life’. In Matthew 6:11, Jesus Christ taught His disciples to pray to God, ‘give us this day, our daily bread’. Many have interpreted that verse out of context; to mean that God only makes provisions to people that will be enough for them in a day. Especially when verse 34 of the same chapter encourages believers not to worry about tomorrow, as tomorrow will worry about itself.

Savings Is ForThe Rich

Funny as it may sound, savings is not a function of volume available to you but a function of attitude. One who does not see the need to save while making NGN 10,000 may never see the reason to save while making NGN 100,000. This is because, at whatever financial level you may be, there is always someone richer than you. Savings is a habit and it is a habit that is easier to develop at a financially low level than at a financially high level. So, don’t wait till you ‘become rich’ to start saving, start at the level you are at. Also, you need to understand that it is practically impossible to become rich without savings.

I have heard many supposed financial advisers erroneously advise people that it is a waste to put money away in bank accounts in form of savings. These persons usually argue that the banks use the money for business, and instead of putting money away in form of business, one should invest the money in business or stocks. While the advice may sound well-intentioned and logical, it is not financially correct that investment is better than savings. Both have their place and are important when done well. The stock market is often volatile and may take a long in yielding huge returns on investments made. So, when you put away all your funds in various investments, while there are chances of good returns at the end of the investment period, there are also high chances of losses at the end of the day.

So, what do you do? Save some, invest some and do with the rest what you please. I believe and see savings as the basic form of investment, when you save, you are investing in tomorrow.

Concluding Thoughts

If you are having a challenge with savings, you must be aware of some of the beliefs you hold that fuel your actions. Identify them and work on doing away with them. Saving is a healthy financial habit and is advisable for everyone to develop it.