Every fashion entrepreneur and individual needs to save money. Your savings can save you a lot of stress and keep you out of trouble in future. But, what good are your savings if you go back and spend all you have saved? Here are 7 ways to quit spending your savings;
Ways to Stop Spending Your Savings
1. Create an Emergency Fund
Emergencies or unexpected expenses are one of the biggest triggers that require you to spend your savings. If you have an emergency fund, you would not need to go into your general savings to foot the bills.
Make it a point to create an emergency fund that you can go to in case of any unexpected expense like car repairs or medical bills. With emergency funds, it might seem like you are spending your savings, but it is not so because it was created for that purpose. So, in helping yourself keep from spending your savings, create an emergency fund.
2. Switch to Cash-Only
Having a credit card and using it to pay for items is highly convenient. It eliminates the need to carry lots of cash around and just makes shopping easier, but watch out, it can be a reason you spend your savings.
If you are looking to stop spending your savings, hide your credit cards and decide to use cash only. You can also work on calculating how much you can spend for the month after you have removed all your expenses and savings from your income and withdrawing it. When you do this, you see how much money you have and as you spend it, you see how it diminishes.
This way, you know when you can or cannot afford something. If you run low on cash earlier than planned here, you know that you have to find creative ways to stretch your money. You will also know when you stop spending and won’t have to go into your savings.
3. Move Your Savings to Another Bank
Keeping your savings in the same account as all your other monies is a sure way to spend it. To avoid spending your savings, move your money to a different bank than your debit card. You can also opt for an online savings account.
With this, the risk of your spending your savings is reduced because to access it, you have to manually transfer it first. You can also choose to lock your savings up for a specified period to make them completely accessible to you. You can have your savings automatically transferred monthly to your other account.
This can help you curb impulse spending and save you from spending your savings.
4. Make Your Budget Work for You
A budget is there to guide your spending. If you must stop spending your savings, you must stick to your budget.
If you follow your spending plan each month, you would not have to spend your savings at all. Before you make any purchases, check your budget and find out how much you have set aside for that expense. If you do not stick to your budget, you will find that you are overspending and end up broke a lot.
Sometimes, though, you might find that even when sticking to your budget you never have enough money for certain things. At this point, adjust your budget to suit your spending without going overboard with it. You can shift things around in different categories to accommodate expenses in other categories.
Whatever you do, stick to your budget so you don’t end up spending your savings.
Read More: 9 Ways To Make Your Budget Work For You
5. Find Additional Income
If no matter what you do, you still cannot stick to your budget, it might be that you don’t make enough money to cover your basic expenses. At this point, you need to find additional sources of income or look for a better-paying job.
Increasing your income can make it easier to save your money without issues. But with this, make sure not to increase your spending to match income. Instead, increase your savings and investments as your income increases.
6. Only Shop With a List
Going shopping without a list is a very sure way to go overboard and spend your savings. Never go to the market or into a store without a shopping list. This will ensure that you buy only what you need.
As you go down the isles of the store and tick items off your list, ignore anything you have not placed on your list because you did not budget for it. Regardless of how tempted you are, do not buy more than you have written down. Learn to say “no” to anything that tries to distract you and tempts you to buy more than you budgeted for.
7. Know Your Weaknesses and Triggers
Knowing yourself and what prompts you to spend more than you should is important to keep your savings safe. If you are prone to overspending, find out what you spend the most money on. Look at your financial statement and pinpoint any unnecessary spending you see there and cut back on them.
Also, look out for times when you spend the most. Is it when you are out with friends? Surfing through the net? Walking through the mall? Wherever your trigger is, find a way to avoid it as often as possible so you don’t get tempted to dip your nads in your savings.
Learning how to stay away from spending your savings can do a world of good for you and your bank account. Just follow the above steps to see improvements in the way you save money.