How to Build Your Savings Without Dipping Into It

    Building your cash cushion is one thing, but not dipping into it is entirely another!

    It’s like having a jar of yummy, delicious, organic, non-GMO peanut butter in my cabinet.  If it’s there, I will for sure dip into it–and, chances are, eat most of the jar standing over my kitchen counter for dinner after a busy work day.  (Yes, that really did happen. Don’t judge me!)

    Look, I totally get it.  When your money is in sight, it’s nearly impossible to not dip into it and spend it.  (Remember the peanut butter jar?!)

    So that’s why in today’s Financially Wise Living episode, I’m sharing one simple tip to help you build a cash cushion and not dip into it on a regular basis.  This tip has helped so many of my clients reach their cash cushion goal–and faster than planned, too.

    Watch the video now, and make sure to leave a comment and tell us how you’ve set up your own cash cushion so you don’t dip into it on a regular basis.

    Enjoy your week, and in the meantime, I’ll be practicing this same technique with my peanut butter jars!

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    • Layna says:

      I have 3 Savings accounts. 1 is permanent savings (i.e. no matter what I do not take money from this account, it’s only purpose is to grow). the other 2 are regular saving accounts except they are not at the same financial institution. One of the 2 savings account has a minimum balance i must maintain so that helps me not take so much out.

    • Jessica says:

      Great tip Brittney! I already follow this and highly recommend it as well. I use an American Express High-Yield Savings account with a 0.9% interest rate to grow my savings. My daily checking account is at a local bank. I transfer money from my checking account to this High-Yield Savings account 1-2 times per month to reach my monthly goal amount.
      ~Jessica, Petite Style Script Blog

    • Dana says:

      I have two checking accounts and one savings account. One checking accounting is for everyday expenses. The second checking account is for known, but non-monthly expenses. The second checking account covers items like annual property taxes, semi-yearly insurance payments, car maintenance, vacation, Christmas, back to school, etc. These expenses are not a surprise, but can cause a problem if you have not budgeted for them. I have created an annual budget for these non-monthly expenses and divide by 12. I then put that amount in the 2nd checking account each month. This allows me to have cash on hand when these expenses pop up. If I didn’t have my second checking account, many “emergencies” would eat up my savings account.

    • Janine Glasson says:

      Good tip — I’ve been struggling with dipping into savings recently. For several months my partner and I were doing so well (saving over 50% of our income and making great progress towards getting our emergency fund built up) but we had a few setbacks — poor planning around a vacation, a few weddings we had to attend, and needing to replace an expensive piece of furniture. As a result we’re just “treading water” and haven’t been able to save for about two months. I think if our savings were at a different bank we wouldn’t be so apt to dip into it. Thanks for sharing!

    • Theresa says:

      I agree this is a great tip! This is the same advice I gave my 18 year old son and it has been helping him.

      It sounds counter-intuitive, but I stopped dipping into my savings by lowering the amount I was automatically putting into savings each paycheck. I had been trying to put too much into savings, which caused me to have to dip back into the savings too often to pay my monthly bills, and my balance never seemed to go up. I created a more realistic budget, allocating a little more to my expenses and a little less to savings, and now I find that I rarely touch my savings. Once it goes in, it stays in, and my balance has grown.

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