My dear Dad had this habit of buying things he could not afford. Somehow, that credit card in his hand was magic. It bought him everything he wanted. Now. No waiting. No doing without.
And after he bought something, he soon grew tired of it. Then he would give it away to a neighbour, friend, or relative.
And when the bill came in the mail, he told my Mother to deal with it.
So, Mom fixed the “problem” in the only way she knew how. She cleaned more houses to pay the bill.
And the cycle would begin all over again when Dad bought something else. Something that was usually expensive.
And not once, did I ever hear my parents’ speak of “saving money” for a rainy day or for an emergency!
Not saving money can put tremendous stress on a marital relationship and on the entire family. Dad’s poor financial management made my Mother nervous and afraid. She had no idea from one week to the next what the bills were going to look like.
I remember hearing my Mother sobbing in her room. Bills were strewn across the bed. Mom trembled as she pointed, “How am I going to pay all these?” She was beside herself. I was maybe 9 or 10 years old. I remember the fear that struck my own heart.
Not saving money can put a strain on others also. Especially those who do save money.
My Mother, “Hey, can you spare a few dollars? So-and-so is out of work and really depressed. And I want to help out.”
Me, “Okay. Sure. When do you want it?”
My Mother, “Today would be best!”
How did I eventually respond to my mother?
Me: “Mom, What are your needs? I am happy to help you. If So-and-so needs money, they can ask me directly.”
Now, does that mean I would bail So-and-so out? Likely, no. Why is that? Because it does not help them in the long run. It only enables and encourages them to continue their irresponsible behaviour.
One day, twenty-five years later, I realized I had a big problem.
I was playing the Rescuer just like my Mother had done years before!
I was rescuing my then husband by mopping up his financial messes. What do I mean by messes?
When he was fired or laid off, who was expected to go out and get a second job?
When he was “over qualified” to work at menial jobs (He had several graduate degrees), who made sure the bills were paid?
When he wanted to splurge and eat out, who covered the credit card?
When our fridge died, who dipped into savings to buy one?
Once I saw the unhealthy pattern, I pulled my head out of the sand. And I made a decision.
This had to stop. This rescuing business. I was tired of driving an ambulance truck behind other people.
So, I read all about boundaries and financial management. And changed my ways.
So, back to your question! What is the consequence of not saving money?
When and if you are out of work (laid off, fired, retired, disabled), you will have no cushion to lean on. If you are continually rescued by a friend or family member, you will never learn to do things differently. Why is that? Because you will not experience the consequence of your choices. You will never grow up. Adults take responsibility for their lives. Children live for the moment.
When your stove or hot water tank blows out, you will have to use the BarBQ instead. Either that, or an electric frying pan.
When you cannot pay your bills, you will stress your spouse and children (if they are living in the home). And if you have adult children, they may worry about you. This is not loving behaviour on your part.
At the end of the day, not saving money will bite you in the butt at some point.
I know of several people who have no emergency funds set aside for when they are in their retirement years. They are fearful they won’t have enough to live on.
That’s how my Mother lived in her senior years. She did not have enough to make ends meet. And when she was widowed, it was a terrifying time for her. Dad never gave a thought to her future financial needs. A number of her children stepped in and invited her to live with them for a time. She moved from house to house. That must not have been easy for her.
Mom was an independent woman. And she liked being her own boss. When she was living under another person’s roof, it could not have been easy for her.
So, what are the consequences? Worse case scenario, you will either be out on the street or someone else will have to bail you out.
And when you don’t have money set aside, it makes it more difficult to share with others when there is a legitimate need.
The wise man saves for the future, but the foolish man spends whatever he gets. Proverbs 21:20, Living Bible