“I’ll put it back,” you tell yourself when you transfer money from your savings account into your checking account. But the more you tap into your savings account to make ends meet, the harder it is to grow your savings. Here are some simple tips to prevent you from facing this dilemma.
First and foremost, set up an emergency fund that is separate from your savings account. Your emergency fund should have 3 to 6 months of living expenses. Should an unexpected expense arise, this cushion will spare you from dipping into your savings account.
Next, try changing your spending habits. If you find yourself frequently tapping your savings, it’s time to re-evaluate your budget. If you don’t have a budget, it’s time to create one. One idea is to use cash for your out of pocket expenses. This allows you to physically see your money leave your possession—and it’s a lot harder to overspend.
Finally, try moving your savings account to a different bank. This makes it just a little less convenient to access your money and can help curb impulse purchases.
These tips will help you keep your savings on the right track.
This information in the Financial Tips section is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.