How Long Can We Go Without Touching the Savings?

My Journey out of Debt

Featured customers currently enrolled in a CareOne Debt Relief Plan, share journey to become debt-free; hear how they juggle family, finances, and more.

How Long Can We Go Without Touching the Savings?

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How Long Can We Go Without Touching the Savings?I feel that is a fair question in light of the fact that withdrawals from the savings account were often a monthly occurrence back before we paid off our debt.

At times the withdrawls were intended to make the ends meet or avert the occasional emergency; but the reality was we were using our savings most often for entertainment.

After graduating from the CareOne Debt Management Plan, there is a little extra money to work with, and it has becoming increasingly important to save for that rainy day or unexpected emergency. 

America's best-known saying about thrift advises, "A penny saved is a penny earned," - Ben Franklin. Most of us would probably describe ourselves as savers, but perhaps like in my case, have failed to live up to this saving self-image. 

We may be saving, but admit that it is not as much as we probably should. I have always believed that if I had more money, I would save more money, but in reality, if I continued to save at the current rate and did not touch the savings, I would be doing great.

An effective move for us was to have the savings come out of our payroll checks before it even hit the checking account. It gives that out of sight out of mind effect. Some companies like my own offers to divvy up your payroll to more than just one banking institution. For example, I have a certain amount go into my credit union savings, my daughters' college fund savings and the remainder goes into my primary checking out. Therefore, my budget is set from the amount left over AFTER savings. 

This appears to be working and we have resolved not to touch the savings.

A few tips that have worked for me and might work for you:

1. Have money directly deposited from your paycheck

2. Track your monthly spending - Budget

3. Pay down high-interest credit card debt - CareOne

Here is to saving for the future.

Zandra Halley, Debt Management Plan Graduate, CareOne Services, inc. Zandra Halley

Zandra is a graduate from the CareOne Debt Management Plan (DMP). You may have seen her posting as 'Motherofone' in our Community. Zandra and her husband have a lovely daughter who was their motivation for tackling their financial future. Having successfully graduated from the DMP, Zandra will be sharing her tips and experience with all of you to help others be successful with their financial goals to pay off their debt. Follow Zandra in the My Journey out of Debt blog. Compensated CareOne Blogger.

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  • I have had that same problem with taking money out of my savings while being on the program.  Especially when that savings account was attached to my checking.  I have done better since I opened my ING account, but have still had to take money out now and again.  I hope I will be able to do better once I am off the program!!!  Thanks for the post!

  • mdavis1964 It will get better. Start making a plan now on how much of your funds after the program you will save befoe the urge to spend on other things take over.

    I separated my accounts to help us save better.  We use our Credit Union account for savings and our BOA account for bills, etc.  It actually seems to make a difference for us.  The Credit Union is not as easy to get to and they don't have teller machines everywhere so it's like out of sight out of mind.  The monies are transfered before I even get my check so I don't bother with it. Emergencies do happen, but for once, we actually have an emergency fund.

  • I have read your article, it's very informative and helpful for me. I admire the valuable information you provide in your articles. Thank you for posting it.

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