We have all been there when either an emergency comes up or money gets tight. It may feel like an easy solution to dip into your savings but don’t allow that to be your first solution as if you do it once, you’re more likely to make a habit of it. Allow your savings account to be untouched and have the opportunity to grow. Try these five tips before resorting to your savings, you can thank us later.
Rework Your Budget
The first thing you should do if you are feeling short on money is to look at your budget and see what that allows for you. If you find yourself looking to dip into your savings frequently, that is a major sign something may be off with the budget you have set for yourself. Take a deep dive into each of your categories and see what needs an adjustment to better fit your financial situation and lifestyle. Sometimes your budget can dramatically change from season to season and that is completely normal. Those small daily expenses over a period of a month can really add up and need to be accounted for.
Adjust Your Subscriptions
If you are short on money, a great way to save a good chunk quickly is to adjust your subscriptions for a few months. $10-$30 subscriptions add up over time, so maybe it is time to unsubscribe for a while to save up enough to cover your expense.
Add a Side Hustle
Side hustles are a great way to make cash fast. Whether you pick up a part-time job or a hobby to make some extra cash, consider giving a side hustle a shot before you dip into your savings. You may be surprised what a seasonal job or selling some things can do to your wallet.
Try Cash Only
When you are having a hard time sticking to your budget sometimes it’s helpful to identify where your problem areas are. Switching to an all-cash budget is a great way to challenge yourself to stick to your budget and see what you have leftover. Set up auto debit for your bills and savings contributions. Set how much money you will need for say a week or a month and stick to using only that to get by.
Build an Emergency Fund
If you don’t already have an emergency fund, now is the time to start one! Peoples Bank & Trust Co can get you started immediately with a savings account for you for your emergency fund. Emergency funds are crucial to have for instances where you may feel like you need to dip into your savings because they are made to help you out when the un-plannable and un-thinkable happen. These funds are to be used for an emergency, so after to re-work your budget and looking to every other option to overcome being short on money, then you go to your emergency fund.
Before you think to dip into your savings, remember to try out these five tips to guarantee budget and savings success moving forward to avoid touching your savings. Allowing your saving to grow is extremely important, so if you treat them as untouchable, the less you will ever try and use them. As you navigate your budget, savings, and emergency fund Peoples Bank & Trust Co is here to help and get you set up with the accounts you need for success!
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