An IVA may not be suitable in all circumstances.

Fees apply to the service, click here for more details. Your credit rating may be affected.

3 Myths About Saving Money: Debunked!

There are some myths about saving money that might lead you to believe that it is difficult to save money. However, saving is not as hard as one might think.

Let's discuss why these beliefs should be taken with a pinch of salt...

An image of a woman trying to work out how to save money.

1. “You must earn a lot of money before you can start saving.”

Coins and day-to-day costs

This is a common myth that people believe, however the truth is that you can save money regardless of how much you earn if you put your mind to it! There are many simple things you can do to reduce the amount of money you spend day-to day. For example, you could try to reduce the amount you spend on food or change your shopping habits.

The point is that everyone has different incomes and should save money depending on what they personally can afford. Once all financial obligations are met, the leftover amount of money is yours and it's up to you how these funds are used. If you can be savvier with your money, you may be able to save small amounts each month despite how much money you are earning.

2. “Saving a set amount each payday is the best way to save money!”

You've likely heard that saving a set amount of income is the easiest and best way to save money. However, this isn't the case!

An illustration of a planner and coins.

How much you save completely depends on how your month goes and what you do - it may vary greatly from person to person. If there's little going on in your life, then maybe you'll be able to save a good amount in a month; but if the next month has more things in store than usual, like a birthday party or dining out with friends it is fine to not save anything.

Don’t feel that you must save each month – just keep track of where your money is needed and make sure you are not overspending. If you cannot afford to save money one month, that’s fine, you may be able to at another time.

3. “There is no point in saving money. Money is there to be spent.”

Saving money is certainly not pointless. By saving money each month, you are likely to have funds available in case an emergency happens.

A car that has broken down

For example, if your car was to break down or you were to have a leak in your home, the money you have saved could be a massive help to get these issues resolved quickly.

It's a good idea to save money for the future for any “just in case” moments. If you don’t have the money to solve unexpected problems, you may need to borrow money from friends or take out a personal loan. Both options have potential to cause added stress to your life that could be avoided through saving when possible.