Hot not to spend all of your savings on a whim
Since we started talking about savings it is important to talk about how not to dig into your savings when you want your splurge and when things go a little tighter than you expect. But the point of saving up is to set something aside for something bigger and grander.
So, here are the tips that are going to help you not dig into your savings while you are waiting.
1. Set up an emergency fund prior to saving up.
2. Switch to cash spendings.
3. Differentiate the banks.
4. Make budget changes.
5. Find another source of income.
6. Cut all unnecessary expenses and get rid of people who are after your money.
7. Reward yourself for every monetary milestone.
1. Set up an emergency fund prior to saving up.
Yes, I know what you are going to say – that is basically saving up in two different ways. Well, yes. But having a safety net is going to make thing a lot easier for you in the end when you are going to know that you can rely on some monetary support other than your savings for a new desperately needed car.
2. Switch to cash spendings.
It is easier to save up when you actually see the amount of money that you need to pay for something. When you pay in the restaurant it is easier to flip a card, but to see what your dinner actually cost in cash might just be a wakeup call that you need at the moment.
Plus, switching to cash is going to make you credit card debt free. If there is no credit card involved, you can’t really max it out.
3. Differentiate the banks.
If you are going to use different banks for different needs, you are going to acquire that feeling of different funds. You know what I am talking about. It’s like putting your rice and your sugar in different containers – these are needed in different occasions.
Keeping your money in different banks is going to help you kill the impulses for the unneeded purchases although you are going to have access to your money whenever you need it. You can simply top up your account and save up.
4. Make budget changes.
You need to change your spending habits. You are going to have to set a whole new budget and a set of new habits which are going to help you adjust your spendings to your new need of saving. You are going to have to cut down on going out or spending in clothes or just don’t celebrate even the minor occasion with a big splash of cash.
Cut down on your lifestyle and you are going to see the difference.
5. Find another source of income.
We are all traders here, so I am not going to gщ too deep into that. Additional income is good and it is going to make your way to saving up either shorter or more effective. Plus, with trading you have a real possibility to multiply your income.
6. Cut all unnecessary expenses and get rid of people who are after your money.
There are some people in our lives who are there purely for money. And in order to keep our assets safe these people, just like unnecessary spendings, need to be cut out of your life. It is as simple as that. This way you are not going to have to dig into your savings any time soon if not at all.
7. Reward yourself for every monetary milestone.
You don’t need to turn your life into a slew of gray spending-less days. You can reward yourself for making it to certain amounts on your bank accounts. Just don’t take the money out of the savings account. That all I’m saying.
Do you take any measures to prevent you from spending away your savings?
