Savings. Any sensible family has them. A rainy day fund can go a considerable way towards easing money worries. With a large sum behind you, no situation will be too overwhelming. You’ll be able to replace the television the moment it breaks, and even help your kids buy their own homes. At least, you’ll be able to do those things if you keep your savings intact.

Of course, that’s easier said than done. Even those of us who manage to save may find ourselves dipping into that money. And, when that happens, it’ll start to dwindle. Some people would argue that there’s no point saving it if you aren’t going to spend it. But, for the most part, a savings fund should be pretty stable. Ideally, you should replace any money you take out. Otherwise, you’ll be back to square one.

With that in mind, it’s crucial you’re picky about when you dip into that fund. Which is why we’re going to look at four times it’s NOT worth breaking the savings. Some of these may surprise you, but they will all help you keep your nest egg intact.

GENERAL LIVING COSTS

You should never turn to savings for general living costs. It may be that you’ve run out of money, and want to get take out for tea. Borrowing $30 from yourself isn’t going to hurt, right? Wrong! The main danger with thinking like this is that you loosen the reins on your saving routine. If all goes well that first time, $30 will soon become 50, then 100. Before you know it, you forget to subsidize what you take, and your savings start to seep out that hole you created. A savings resolve HAS to be airtight. Otherwise, it just won’t work. If you want treats, or meals out, buy them from your pay packet, or not at all. Never allow yourself to ‘just dip in’ for unnecessary expenses. If you do, you can guarantee it’ll be a costly mistake.

A VERY APPEALING VACATION

Another place many of us fall foul is when it comes to booking our next vacation. In most cases, holidays are about the priciest up-front cost we make in a year. Paying for both flights and hotels can squeeze event the healthiest monthly fund. So, it’s no wonder that many of us dip into those savings instead. It’s no big deal, after all; you’ll put more money back in, right?

In one way, the above point can be made here, too. A breach like this into the airtight saving mentality could prove disastrous. Worse, this involves large sums of money going out at one time. Plus, when dipping into a significant savings fund, you’re more liable to fall into the trap of overspending. Why not book into that five star hotel? You can afford it! Of course, you can’t really, and your savings will take a hit, here. And, it’s not even as though this is something you need!

To make sure this situation doesn’t spiral, keep your savings out of the mix. Think of them as unreachable, or try to forget they’re even there. Instead, look into costs, and then set aside money specifically for this purpose. Even if this means not putting anything into your savings for a month or two, it’s better than opening the can of worms. Plus, working on a tighter budget will ensure you make sound decisions. A vacation can cost a fortune at the best of times, let alone when you fall into the luxury trap.

HEALTH EMERGENCY COSTS

You may be surprised to see this one on here. After all, health emergencies are something many of us have in mind when saving. But, the truth of the matter is that even something like a broken bone could clear your savings in one swoop. So, if you rely on them for dealing with medical emergencies, you could find yourself back at square one. Instead, prepare for the situation so that your savings don’t come under attack. By investing in health insurance, you can save yourself a lot of worry in this area. You could even pay for that insurance policy out of your savings if you wanted. In fact, this would be the perfect way to put that money to good use. And, you can rest easy that a small monthly sum will be a lot better for your backup fund than a massive blow.

Of course, not every insurance policy covers every eventuality. Which is why it’s worth doing your research before signing up for anything. That way, you can pick a policy which best suits your needs, and protect your savings even further.

THE COST OF INJURY

Few of us like to think about receiving an injury, but it can happen to anyone. And, when it does, many of us look to our savings to cover the financial burden. That doesn’t, of course, mean the medical bills. If you took the above advice, your insurance would cover those. But, medical help is rarely the only cost related to an injury. You’ll likely also need to subsidize your time spent out of work, as well as paying for any extra services, like physio.

Why shouldn’t you look to your savings at a time like this? Much the same as with health emergencies, expenses like these will soon see your savings dwindle. Plus, covering costs of time spent off will take you right back to the first point, of using your savings to cover general living. None of which will be what you had in mind when you started saving. Instead, it’s essential to find alternative ways to pay for these costs. So, if your injury was someone else’s fault, you could contact a law firm who could help you gain financial compensation. Or, if you’re able, you could find easy ways to earn while you’re off sick.

Either way, keep your savings out of it. Otherwise, that injury will take you a lot longer to recover from!

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