Crap happens.
Unexpected expenses come up.
Human error makes way for mathematical oopsies.
Sometimes we may have less income coming in.
Whatever the reasoning, sometimes we find ourselves dipping into our savings. While we definitely should avoid this at all costs, sometimes its just inevitable.
Before you start beating yourself up over it or hyperventilating over that ominous credit card bill, consider some of these tips to help you start building up your savings once again.
What to Do When You Fall Off the Financial Savings Horse
1. Don’t Panic.
It’s very easy to start getting a panicky feeling whenever your finances dip. Sweaty palms, rapid heartbeat, and apocalyptic daydreams of impending ruin are just some of the symptoms.
When this happens (and let’s face it, we’re human so it will happen) I want you to follow one rule: DON’T PANIC.
When you let a feeling of anxiety take over you are only hurting yourself. Giving in to your stress will only hinder you from taking the necessary actions to build up your finances again.
2. Keep following your savings plan.
If you have a savings plan where you know exactly how much of your paycheck is going where – stick to it. Just because you took a financial hit doesn’t mean you need to stop doing something that was clearly working for you.
If you don’t have a plan, consider setting one up.
3. Spend less on things you don’t actually need.
Do you really need an upside down non-fat caramel macchiato every single day? Take a look at your spending and see where you can make small cuts to start. Remember, even dividends add up.
4. Use your debit card.
While I always have some cash on me for emergencies, I really don’t like to use it. I prefer to use my debit card so that I know exactly how much I’m spending on what. And now, with so many banks offering smart phone apps, it’s easier than ever to check on your accounts.
5. Leave the credit card at home.
This pertains more to those of you who are in debt. As you probably know, debt is one of the biggest financial hurdles Americans face today, and Gen Y is right at the top of that list of victims.
Avoid piling on debt at all costs! It will work wonders for your financial accounts.
For those of you who are not in debt, we live in a system where you need to use your card in order to build credit. Consider putting something small on your card every month so that you can pay it off in full. I personally have my Netflix account and my salon membership linked to my credit card- AND THAT’S IT!
6. Ask yourself how you can make some extra money.
Thanks to the internet it’s easier than ever to make some extra dough. Whether you want to write, design websites, or become a virtual assistant, the opportunities are really endless.
If the internet is not an option there are plenty of things you can do around the neighborhood to make some extra cash. Dog walking, cleaning, cooking, and handy work are all viable options.
Click here for a list of side businesses you can start on your own.
Speaking of saving money…
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Great tips! I’ve got to get better at using my debit card, but it’s so easy to put things on my credit card. I don’t think it’s a very effective savings strategy to spend money before I actually have it, even if I do always pay off the balance in whole.
Yeah unfortunately sometimes I suffer from the same problem. Although I make sure to pay off my card in whole, I sometimes tend to put little things on the CC. And boy do little things add up.