Saving money is not nearly as fun as spending it, but not saving money from each pay-check can have some pretty serious consequences.

Here are 6 Consequences of Not Saving Money:

  1. Unprepared for Financial Emergencies. 
  2. You Will Go into Debt.
  3. Unable to Fund Major Life Events.
  4. No Inheritance Money For Loved Ones.
  5. You Will Always Have to Work.
  6. No Peace of Mind.

Some people are natural spenders, while others are natural savers. Regardless of what you are though, you have to learn how to save money.

Listen, I understand the argument that you should live for today as tomorrow isn’t promised. I used to think like that myself, I’ll just worry about later…..well later. I get that way of thinking, I really do and I’m not faulting you if you think like that, it’s quite natural actually.

In fact, I love spending, I even wrote an article here on 11 tips you can use to spend your money more wisely. Im not anti spend! But I am anti not saving.

Consequences of Not Saving Money

But here’s the thing, for most of us, “later” becomes a reality and if we’re not prepared for it, the consequences can be quite harsh, both financially and psychologically.

1. Unprepared for Emergencies

One of the consequences of not saving any money is that you’ll be financially unprepared to deal with any unexpected emergencies that occur.

For example, what if the hot water boiler in your home breaks and you have to pay $10,000 to get it fixed? If you don’t have any money saved, and your insurance doesn’t cover it, you’ll probably have to go into debt to pay for this.

Or even a less expensive financial emergency, what if your car breaks down and it’s going to cost $1500 to fix?

$1500 is a lot of money for someone who saves money, let alone someone who doesn’t.

Unexpected and unfortunate things happen in life, while they might not all cost you money – some of them will and you need to be prepared for that.

I highly recommend setting up an emergency fund for these types of situations.

Anywhere from 3-6 months worth of expenses is plenty and will prevent you from going in debt to fund unforeseen circumstances.

2. You Will Go Into Debt

The biggest consequence of not saving any money is that debt will almost be inevitable for you.

Going into debt is almost like a bi-product of not saving money. Heck, it’s hard enough to stay out of debt for those of us who do save money.

Whether it’s a broken down car, your daughter’s wedding, or maybe a last minute bachelor party to Vegas for the weekend, not having money stored away to cover these expenses will likely require you to go into debt.

While not all debt is bad, some of it is.

Consumer debt usually carries a very high interest rate depending on the type of credit you used to make the purchase. But regardless of the interest rate, using borrowed money to pay for things that aren’t assets is usually a bad idea.

You might find yourself in serious consumer debt if you don’t save any money. This can get very psychologically deflating as whatever money you do earn in the future is just used to service your debt payments. – it’s like a revolving door of debt. It’s terrible.

Avoid this at all costs, it’s a vicious cycle that’s hard to get out of.

Can you imagine having to pay back borrowed money! How dare they ask for that back. I earned that money!! Okay maybe not.

Jokes aside, that’s not all. Studies have shown that we spend more money when using borrowed money because it doesn’t activate the pain centers of the brain that fire off when we buy something with cash.

Life happens fast. Unexpected expenses, whether good or bad, come at us quickly as we get older. Saving money prepares you for what life has to offer and prevents you from having to go into debt.

Time to Start Saving?Our RecommendationsStart Saving Today
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3. Unable to Fund Major Life Events

Not saving any money can have huge ramifications when it comes time to fund major life events like weddings, family vacations or home ownership – just to name a few.

Remember this, the more you save now, the more you’ll have to spend later.

Short term sacrifice for long term gains.

Depending on where you save and invest your money, saving now can actually mean WAY more spending later due to the power of compound interest (more on this later).

Imagine being able to fund a family trip to Florida or to be able to pay for your child’s wedding. How much joy would that bring you?

On the contrary, going into debt to fund these big moments may result in you resenting them for the stress and financial hole they’ve caused.

Don’t spend amazing moments like weddings, family reunions or vacations worrying about how much debt you’ve used to fund them. The more time you spend stressing over this, the less time you have to enjoy the things that really matter.

Enjoy every last minute of these milestones knowing that you’ve paid for them with your hard earned money. You’ll enjoy them so much more and you’ll thank yourself later.

4. No Inheritance Money For Loved Ones

Morbid thought, I know. But hey, we are all going to die at some point and leaving your loved ones with an inheritance is always a nice thing to be able to do.

While this is not a serious ramification of not saving money, it is definitely something to think about.

The value of an inheritance goes much deeper than just the financial aspect of it. People that inherit money from their loved ones often use this money on something sentimental.

Not only is this a nice surprise during a difficult time, but if the money is spent wisely, it can help loved ones remember you and the legacy you’ve (hopefully) left behind.

If things get really bad and you die with a lot of debt, your loved ones will unfortunately be on the hook for this as well. Not to mention things like funerals and burial costs. Pleasant thought I know.

Let’s move on before we all start to cry.

Related Financial Geek Article: 4 Things to Spend a $150,000 Inheritance On.

5. You Will Always Have to Work

A major consequence of not saving any money is that it makes you completely dependent on your income.

You will have to work until the day you die if you wish to maintain your spend-first lifestyle. Who wants to do that? That sounds absolutely terrible.

Consequences of Not Saving Money

You see, the more you save and invest in your early years, the more freedom you have to do whatever you want during the later stages of life.

What’s even better? This is not a save a dollar now and spend a dollar later situation.

Let’s look at an example.

Your friend decides to save and invest $100 a month from ages 20-65 while you decide to live life to the fullest and spend every last dollar you earn.

You might be thinking, “Okay so what? That’s an extra $54,000 when she retires, who cares? I’ve lived my life to the fullest, I don’t care about $54,000.”


If your friend invested that money each year into a conservative investment and generated an average return of 9%, her $54,000 would look more like $740,487.

$740,487!! Yes, you read that right.

Who’s laughing now? Your friend sacrificed a small amount of money each month and retired with nearly three quarters of a million dollars.

For every $1 dollar she put in, she got $13.70 back out. That’s crazy!

Your friend can now live a happy and comfortable life upon her retirement.

Instead of wondering how she can earn more money at age  65, she’ll be wondering what golf course to hit up next. Fore!!!

If you are wondering how much of your income you should invest, check out my article How Much of Your Income Should You Invest where I break down how much I believe people should invest in relation to their income.

Make your money work for you and retire happy.

6. No Peace of Mind

Not saving money can lead to a lot of negative outcomes as mentioned above. While mostly financially related, not all repercussions are directly related to money.

The emotional effects of debt can be quite severe.

I know I mentioned above that going into debt might be the biggest downfall of not saving money, but as I’m writing this, I think I’ve changed my mind.  With that said, the two consequences coincide with each other as going into debt is what can trigger these emotional effects

According to, having debt can trigger some pretty serious emotional feelings such as anger, stress and depression.

Consequences of Not Saving Money

Increased stress levels can lead to serious physical health issues such as higher risk of heart attack, high blood sugars, insomnia and headaches.

Being in debt won’t automatically prompt these emotional effects on you as everyone reacts differently to certain situations.

What stresses me out might relax you, what makes me happy might make you sad, what makes me furious might cheer you up, who the fu** knows!!

At the end of day, we all just want a good night’s sleep don’t we?

The emotional and physical effects that debt can cause is just one of the many reasons why you should save money

If debt doesn’t negatively impact your emotional state directly, then lucky you, but you should still save money and stay away from borrowed money as much as possible.


Not saving money can have serious consequences. Whether it’s the debt, the lack of freedom or the emotional pain it puts you in, not saving money is not, I repeat is not a good idea.

If you take one thing from this article, make it be this. Despite what you might think, saving money will actually make you happier. 

Related Financial Geek Article: 18(Uncomplicated) Smart Money Moves For Your Twenties.

Not only will you not feel the emotional effects of debt, but you’ll be excited about what your future holds knowing that your financial situation is looking bright.

On top of all this, if you live within your means, save money and avoid debt, you won’t feel the need to “keep up with the Joneses”.

What’s more, from personal experience, I can almost guarantee you that saving 10%-15% of your income won’t drastically change your current lifestyle. It’s like getting a needle, you won’t feel a thing!

Trust me, just try it and see if your happiness levels are negatively impacted. I bet they won’t be.

So yes, it’s a little sacrifice, but for a huge gain. (Remember $1 in $13 out).

Walmart wasn’t lying when they made their slogan “Save Money, Live Better”!!

Geek, out.

Time to Start Saving?Our RecommendationsStart Saving Today
Wealthsimple Invest ($25 Bonus)

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  • Designed for beginner investors
  • 15 Minute Sign-Up Process
  • 100% Free to Sign-Up
  • No minimum deposit required
  •  Great mobile experience
Sign Up HereRead our Review

BettermentOnly in USA

  • Get started with as little as $10 
  • Low, annual fee of 0.25%.
  • Socially Responsible Investing
  • Manage finances all in one place
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