I’ll save when I’m older and have fewer expenses.
1 min read


The statement, ‘I’ll save when I’m older and have fewer expenses,’ is a financial fallacy for several reasons. Firstly, it assumes that your future self will have the ability to save more than your current self, which is not always guaranteed. Second, it overlooks the power of compound interest, which works more effectively the earlier you start saving. Time is your ally when it comes to personal savings and investments.

It’s easy to fall into this line of thinking because it relieves the pressure of saving now and also aligns with our natural tendency to focus on the short term. Immediate needs and wants often take precedence over the abstract, future concept of retirement. Furthermore, the assumption that you’ll have more disposable income in the future can be a comforting thought.

A recommended approach involves prioritizing savings and investments from an early age or as soon as you start earning. Even small amounts, when invested wisely, can grow significantly over time due to compound interest. Budgeting, responsible spending, and embracing a lifestyle within one’s means is also part of a more sound financial strategy. Regularly reassessing your personal finance strategy to ensure alignment with your financial goals should also be emphasized.

Further readings on this fallacy:

  1. “The Millennial Money Fix: What You Need to Know About Budgeting, Debt, and Finding Financial Freedom” by Douglas and Heather Boneparth. Book Link An intriguing look at common financial fallacies among millennials and how to fix them.

  2. “Power Of Compounding: What Is It and Why Does It Matter?” by ET Money. Article Link. This article sheds light on the power of compounding and why it’s vital to begin saving early.