Are there consequences of not saving money? You better believe there are. You can find yourself in real trouble down the road if you have no money in savings or other investments.
There are seven consequences you should be aware of and do what is necessary to avoid them at all costs.
Disadvantages of Not Saving Money
1. You’re Up a Creek Without a Paddle in an Emergency
Let’s face it. Life doesn’t play fair. Too often when you think things are going well in your life, you get slapped by something you never saw coming.
This could include:
- Your car breaks down
- You fall and break your leg
- You lose your job
- Your HVAC dies in a heatwave or cold snap
- Your water heater floods your house
- Your plumbing backs up
I could go on just about forever, but you get the point.
All of these things tend to happen without warning, and I’ve had all but a couple of them happen to me.
If you don’t have any money in savings, you can find yourself in a real tight spot, and I can guarantee you that sooner or later one, or more of these and other emergencies are coming your way in the near future.
2. You Want to Celebrate in a Big Way – But Can’t
This can include getting married, having a baby, having a child graduate from high school, or any other big life events.
All of these events take cash…large amounts of cash. If you haven’t saved any money to provide for them, then you will either have to skip the celebration or even worse go into debt to pay for it.
This brings us to the third and maybe the worst consequence of not saving any money.
3. You Will End Up Going Into Debt
No matter your good intentions, you will end up going into debt if you haven’t saved any money.
There is no getting around it.
Expenses will come up and you won’t have the money to pay for them, so you will either have to charge it on a credit card or get a loan from a bank or even worse a friend or family member.
There are only so many times you can go to the bank of mom and dad or your best friend before you ruin the relationship and they say no more.
That’s kind of true of credit cards as well.
For a time, they will be happy to raise your credit limit as long as you are paying the monthly payment on time, but there will come a point that’s no longer possible.
The day will come that you can no longer afford your monthly payment or they won’t give you another increase in your spending limit.
Then what do you do if your roof starts leaking?
Chances are, you will have to find a couple of buckets and hope for sunny days.
4. Your Life is Always Stressful
Let’s face it. If you haven’t saved any money, you know in the back of your mind that sooner or later you’re going to be in trouble.
You may not want to admit it even to yourself, but chances are you have had a few sleepless nights worrying about the “what ifs” that come with having a slim bank account.
Heck, I’ve been there myself, so I know what it’s like.
It is very difficult to have peace of mind if you have to worry about money. Instead, you will be stressed out a good deal of the time.
Of course, stress can cause all sorts of health issues, which could end with you in the emergency room, and boom, there’s one of those emergencies you didn’t save for.
You might also enjoy:
5. You Can’t Quit Your Job
Too many of us have had or have jobs we hate. There’s not much worse than having to force yourself up in the morning and out the door to a job you can’t stand.
If you don’t have any savings, you will have to deal with it. You can’t quit your job unless you find a new one first which isn’t always easy.
So, you’re kind of stuck in a bad situation. With a healthy savings account and emergency fund, you could give yourself the time to find a new job, a job that you might even like going to.
6. If You Get Fired You’re in a Terrible Position
The other side of the job coin is you getting fired.
Being fired is no fun and it can come without warning.
It happened to me once years ago. Part of me was kind of happy about it because I hated the job, but I didn’t have any money in the bank.
That meant I couldn’t pay my next month’s rent or utility bills.
It was a difficult time.
If I had an emergency fund or a good savings account, it wouldn’t have been so difficult and I wouldn’t have had to take any job I could find just to get the rent paid.
7. Forget Having Any Real Fun
What to go on vacation? Forget about it. Want to go see your sister’s new baby who lives across the country? Not going to happen.
When you don’t have any savings, you can’t take off and have a little adventure or visit family or any other kinds of travel.
You miss out on more than you know.
Related Questions for Consequences of Not Saving Money:
What are the Consequences of Not Saving for Retirement?
The consequences of not saving for retirement include all of the above, but there is one more major issue.
If you haven’t saved any money you may find that you can’t live on the amount of social security you receive each month.
That means you might have to give up your house or move and even worse, it may mean you can’t retire at all.
How Much Money Should You Save?
Some say you should have at least three to six months of your monthly expenses saved. This is a really good emergency fund and a great place to start.
What are The Benefits of Saving Money?
There are many benefits of saving money. Maybe the biggest is the peace of mind it brings you. You know you can handle anything that comes your way.
You don’t have to spend sleepless nights worrying about the next big surprise. You’ve got it handled, so now you can just enjoy your life.
As you can see, the consequences of not saving money can be alarming. You can find yourself deeply in debt, unable to have any fun, and stressed out from worry. If you haven’t been saving money, break the cycle of debt and distress, and start a savings plan today. You will be happy you did.