How to Stop Taking Money Out of Savings

We have all been there, we do our best to start a savings account because we know it’s the right thing to do. But then, money gets tight and we transfer money from our savings to get us through. This process used to be much harder but with all banking being mostly online, it’s getting easier and easier. So what can you do to stop taking money out of savings and start actually…well, saving? I’ve got 9 practical tips to help anyone struggling with saving to get on the right track.

*This post contains affiliate links. I may earn a commission on my recommendations at no cost to you.

Get to the bottom of your spending

Chances are, if you continuously take money from your savings account it’s because you are not really paying attention to where all of your money is going throughout the month.

You are most likely putting money into savings because you know you can afford to save. Then days after getting paid, your bank account is $0 and you are forced to take money out of savings.

If this sounds like you, then more than likely you are spending your money on a lot of wasteful things. Yeah, maybe you already know that.

The best way to actually find out where your money is going is to do a spending re-cap.

Doing a spending re-cap

A spending re-cap is super simple and can be very eye-opening.

All you have to do is get your statements out for the last 3 months and highlight any places you spent money when it wasn’t a necessity. That means things like:

  • Fast food
  • Happy Hour
  • New shoes
  • Restaurants
  • Impulse purchases
  • Online shopping

Wherever you spent money on items that are not crucial to your survival, they need to be highlighted.

Go through the last 3 months of unnecessary spending and start to look for trends i places where you are spending excess amounts of money.

Eliminate distractions

Once you have an idea of the places where you are wasting your money time and time again, start gathering ideas on how to eliminate these distractions.

If you are going out every day for lunch with co-workers. Start planning a lunch 4 days a week and plan one day to go out for lunch.

When you get text messages alerting you to new sales and discounts in your favorite stores, opt out of these messages. I know it’s tough, but so is being broken month after month.

No matter what your vice, come up with a game plan for how to avoid getting tempted or distracted.

Cutting off your major spending struggles at the source is one of the best ways to stop taking money out of savings and start keeping more in your own pocket.

Ready to take your saving seriously? Here are 9 simple steps on how to stop taking money out of savings. Take control of your finances. Here's how.

Free up your money

A major mistake people make when they say they don’t have enough money is that they do have enough, they are just spending it on other things.

If you are paying a cable bill each month or have an unused gym membership then you know what I’m talking about. Maintaining these high-cost items is just taking money directly out of your wallet each month.

What most people don’t consider are more cost-effective ways to save on their biggest bills. Here are some top examples of how to save on your most expensive bills:

  • Digital antenna – Instead of paying the high price of cable each month, you could save thousands of dollars each year by getting a digital antenna instead.
  • Sling TV – Sling TV is a streaming service that brings you all of your favorite shows for only $25 per month. That’s around a $100 or more savings when compared to cable.
  • Aaptiv – Get personal training and guidance for only $15 per month and get the first month free. With the average gym membership costing around $69 per month, this is a huge savings.
  • Ting – Ting phone plans average around $25 per month. You set your own limits and choose how much you want to pay instead of locking into an iron-clad contract with other phone companies.
  • Trim – Trim is an app that will review your monthly bills and find cheaper payment plans for you. Learn more.
  • Charlie – Not a savings app just a great way of getting messages to help you reduce your bills, save for the future and even find free money. On average people are saving $80 per week with Charlie!

Make your money work for you

If you are not currently running your life on a budget, then you should be. I created a simple budget bundle for people who don’t like to budget. This is a great bundle to have if you are a hands-on kind of person who learns better from writing things down and holding an actual piece of paper in your hands.

Another great option is to create a digital budget online with EveryDollar budget from Dave Ramsey. The best thing about this app is that you can visually see where all of your money is going and the app does all of the math for you!

No matter what, get a budget.

People believe a budget is limiting but really it allows you to be in full control of the money you work so hard to earn.

So start taking control and telling your money where to go. Get started on a budget that works for you.

Helpful posts:

Get a debt payment plan in place

Another must-have way of creating more money without working more is by paying off all of your debt.

My favorite way to pay off debt helped our family become debt free in 3 years is the Debt Snowball. Here is a quick 5 minute video tutorial of how the Debt Snowball works to get you out of debt and get more money in your savings account.

Open a savings account that is harder to get to

Now here’s an idea. What if you had a savings account that you couldn’t easily take money from?

Would that be amazing?

Why not make it happen?

Most people who have a savings account have one through their local bank. The same bank that they have their checking accounts with.

What most people don’t’ realize is that their savings account is barely making them any money in interest or maybe is even taking money from them.

Setting up a savings account that is separate from your main bank is one of the best ways to avoid transfer temptation and to start actually getting paid to save.

Smart savings accounts that pay you

  • Money market account – Open a money market account with CIT Bank to get a 1.85% return on investment.
  • Savings Builder – Get up t a 2.45% interest rate with CIT Bank by depositing only $100 per month into a Savings Builder account!

Plan for emergencies

Sometimes you take money out of savings because you over-spent on silly purchases. Other times, maybe you have to take money out of savings because you have an actual real-life emergency.

Did you know about 50% of people would not be able to afford a $1,000 emergency? Do you fit in this category?

Having a savings is a big deal and is something you should definitely do not only to prepare for retirement but to help yourself be prepared in case of an emergency.

The one thing about unexpected emergencies that people always forget is that they are never unexpected. We know emergencies are going to happen in life. That’s why it is so important to prepare for them.

Prepare for emergencies by getting a $1,000 emergency fund built up that you can access when you need to and then set up automatic savings so you are saving each month without thinking about it.

Plan for the fun stuff

Most likely the fun stuff is what got you in trouble in the first place. It’s the reason you are taking money out of savings to begin with. That doesn’t mean you should stop having fun. Instead, just plan for it. Budget for the fun stuff in your life.

Making a budget plan for the fun stuff in life helps you stay on track financially. A fun money budget also helps you keep your priorities straight

When you only have $100 of fun money to spend, it might make you think twice about that $75 hat you see at the mall.

I am a big believer in fun money and it’s something I encourage everyone to include in their budget.

Make saving fun

Saving is tough because it doesn’t always bring instant gratification like shopping or going out to eat. That’s why I have an awesome savings tracker chart to help you make saving a little bit more exciting.

That way, whenever you add money to your savings, you can physically write it down and color in your savings jar. This helps get you a little bit more excited and allows you to visually see how much money you’re saving when you stop taking money out of savings.

Ready to take your saving seriously? Here are 9 simple steps on how to stop taking money out of savings. Take control of your finances. Here's how.

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Ready to take your saving seriously? Here are 9 simple steps on how to stop taking money out of savings. Take control of your finances. Here's how.

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