If you find yourself dipping into your savings account each month, you need to follow About.com’s suggestions for how to give up that bad habit.
Set up an emergency fund separate from your savings account to cover surprise emergencies like car or home repairs. That way you will have the money you need when the unexpected happens.
Start paying for all your purchases with cash rather than debit or credit. Often, banks will automatically transfer money from savings to checking to cover overdraft, making it easier to overspend. If you have to go to the bank to get out cash once you have run out, it’s a lot harder to make that mistake.
By moving your savings account to a different bank from your checking, you make it that much more difficult to access it when you run out of spending money.
If you are consistently having to dip into your savings month after month, it might mean your budget isn’t adequate. Look for places where you can adjust your spending to more accurately reflect reality or save money for the necessary items.
If you just don’t have enough income to cover expenses, it might be time to start looking for a new job or a way to earn additional income. You also might find that you have taken on too many expenses and need to find other ways to cut costs, like getting rid of cable or your gym membership. Or if you are really overspending, it might be necessary to sell your car or downsize to a smaller home.
Give yourself a reward when you reach savings milestones. Start with small rewards and give yourself bigger bonuses as your fund grows. You might buy a new dress or video game when you reach $1,000 and a little getaway weekend when you reach $10,000.