Ways you can stop dipping into your savings

The present economic hardship could lead someone to tamper with his savings in order to overcome certain rough spot within the period.

When this goes on for some time, you may discover that your savings is dwindling and the possibility of saving more is zeroing. Consequently, this might have negative impact on your budget and goals.

However, Miriam Caldwell, personal finance specialist has come with some ways you can stop dipping into your savings monthly.

One of such ways is having emergency fund. If you have a separate emergency fund to handle unexpected expenses, then you will no longer need to dip into your savings account to cover things like car repairs.

Although it may seem like you are dipping into savings, you really are not because you have earmarked these funds ahead of time to cover these expenses, Caldwell said in her newsletter.

Like the Western world, Nigeria is gradually running a cashless economy. In view of this, you need to Identify your problem categories and switch to cash only to pay for the majority of your expenses. Your bank may automatically transfer money over to cover expenses from a cash reserve or savings account, which makes it easier to be lax about sticking to your budget. When you are using cash only for your spending, it takes a lot more work to overspend since you have to actually take the money out of the bank.

Moving your money to fixed deposit or investing it in money market or other investible area is another way you can avoid dipping into your savings. If you put your money in a different bank or open an online savings account, it slows down how quickly you can access the money. This can help curb impulse purchases, and you will still have access to the money if you need it. You can have your money automatically transferred into this account each month. It makes it easier to allow the money to grow instead of relying on it to cover your spending.

Adjusting your budget is necessary. Caldwell said If you are consistently dipping into your savings, this is a sign that there is something wrong with your budget. You may find that you need to adjust your spending in your grocery category or other areas to cover increasing costs in utility bills. Taking the time to write down your budget and to track it each month will make a big difference in how much you can effectively save each month.

Look for additional income and cut your expenses.  It may be that you are not making enough to cover your expenses each month. If you are dipping in to cover you basic expenses each month and not to cover emergencies or overspending, you will need to find additional sources of income or look for a new job. Increasing your income can make it easier to save. Picking up a second job that allows you to earn tips can also help you cash flow any smaller emergencies that may come up.

HOPE MOSES-ASHIKE