9 Unique Ways To Stop from Dipping into Your Savings
Written by
Cindy Lamothe
Edited by
Amen Oyiboke
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Dipping into your savings may happen more often than we’d like–emergencies, unexpected expenses, and even special events–can all creep up on you and lead to pulling money out of your nest egg.
To prevent you from borrowing against your future, experts say there are other strategies you can take to deter you from resorting to this option.
Maintain Multiple Savings Accounts
“Having multiple savings accounts is something I’ve found can help with this,” said David Kemmerer, CEO of CoinLedger.
“Sometimes there are instances that come up where you need a little more money in a month–like if you’re driving more than usual and end up paying more for gas, or hosting friends from out of town and paying more for groceries, etc,” said Kemmerer. “In these cases, I find it useful to have a more flexible or fluid savings that can be dipped into for these types of expenses along with regular car maintenance, unexpected–but non-emergency–vet visits, and more.”
He also recommends maintaining an emergency or long-term savings that you cannot touch. “Making this distinction can help ensure your emergency fund grows steadily, while still giving you access to extra funds when you need them.”
Make Savings Inaccessible
According to David Bakke, financial expert at DollarSanity, the easiest way to avoid dipping into savings for expenses they weren’t meant for–is to make your savings inaccessible.
“As a quick example, if you ramp up your 401(k) contributions to the highest level possible, you cannot immediately access that money,” said Bakke. “Of course, you’ll probably want to make sure that you have a healthy emergency fund in place so you have accessible cash if an emergency arises.”
Instead Of Spending, Work Out
If you find yourself in situations where you’re just spending money for the enjoyment (or the “high”), skip that and replace it with exercise, says Bakke. “I’ve actually done this and it works. Instead of logging onto Amazon, go do a bunch of pushups, situps, and anything else you can think of. Problem solved.”
Find A Partner
“If you’re trying to avoid dipping into savings, chances are you have a friend or family member who is too,” said Bakke. “Partner up with them and attack the issue collectively. Maybe you agree that a phone call or text is in order before savings are dipped into. With this strategy, chances are that your partner will talk you out of any ill-advised purchase.”
Jonathan Feniak, general counsel at LLC Attorney, equally believes in enlisting help.
“Consider sharing your savings goal with a friend or relative whom you trust and respect,” said Feniak.
He also believes this ‘enforced accountability’ can often prevent you from making impulse withdrawals from your savings fund.
Visualize Your Savings Goal
Think about it: “What are you saving towards?”
According to Andrea Woroch, consumer finance and savings expert at Andrea Woroch, visualizing that goal and keeping it somewhere you can see it like a vision board with you enjoying your dream home or that dream vacation are great ways to stick to your target and keep from using the money you need to get there.
Open a Separate Online Savings Account
“There are two benefits of opening a separate online savings account that is not directly linked to your checking for overdraft or that can be used with a debit card,” said Woroch.
For one, she says you won’t be able to tap into it for unnecessary purchases and it’s out of sight and out of mind.
And secondly, she says you can earn over 5% interest with a high-yield online savings account.
“Like Bread Savings which offers [a] 5.15% annual percentage yield which is much higher than the 0.46% offered by traditional savings accounts. Therefore, your savings will make more money and reach your goal faster!”
Unfollow Accounts that Make You Spend
According to Woroch, you should place healthy limits around your online accounts.
“Limiting your social media use, deleting payment info stored in social media accounts, and unfollowing anyone who makes you spend more than you should are easy ways to avoid spending and tapping into your savings unnecessarily.”
Draw Digital Boundaries
“Consider using modern banking applications that allow automatic segregation of funds, creating a ‘digital vault’ for your savings,” Feniak advised. “This acts as a psychological barrier, deterring casual use of the money.”
Treat Your Savings As Debts
“Treat your monthly savings as a non-negotiable expense,” said Feniak. “Akin to a debt commitment.”
He thinks this reframing can turn savings into a self-imposed liability, inspiring you to cut discretionary spending instead.
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