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.
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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
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.
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:
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
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.
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:
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
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.
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.
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
isbarely 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.
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
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.
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
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.
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.