MENU
GET LISTED
GET LISTED
SHOW ALLPOPULAR CATEGORIES

Big Mistakes People Do in Reviving Their Life Savings

Category: Uncategorized

How To Lose A Life Savings In A Few Days

This article is Part 5 of 5 of
Your Total Guide to Managing Life Savings: Exposing The Best-Kept Secrets

 

Photo 9So you have dipped into your life savings account, a big chunk has been shaved off and you want to regain your balance statement to its former rosy figure. There are common mistakes people do in replenishing their life savings that often backfire. Here are some of them.  Make sure you don’t fall into the same trap!

Replacing the same big amount asap – at all cost!

You gobbled up $3,000 for an emergency from your life savings fund? Relax. You don’t really have to replace the same amount at once so you’ll have peace of mind that everything is back on track.

Chances are, you will be spreading your available money too thin just to be able to replenish your emergency cut at a hundred percent rate asap. You will take from your other savings account (maybe a little from 2 other small accounts you have), couple that with some amount from your available cash (the one you keep ready in your wallet) and combine some small loans (either interest-bearing or not) so you come up with the $3,000 and bring back your life savings balance at its previous healthy state.

Big mistake! By doing this, you actually end up losing more money. Combining the costs of your accumulated portions to complete the big amount you withdrew for emergency adds up to more money lost, a huge price to pay for the “peace of mind” of having your life savings return to current balance.

Using life savings balance in a sudden game of stocks

The goal in this solution is obvious. One hopes for the perceived income from trading or short-term investment products using money left in the life savings account with the goal of earning back the used amount when one does not have the means to replenish it through the usual route.

Not only is this very risky, it also jeopardize the goal of enjoying some peace of mind that comes with having and growing a life savings fund because of the uncertainties of the “solutions” taken and worse, when the game plan results to losses, as you can never get back the money anymore.

Entering into investment offers

This works almost the same way as using your life savings balance to play the stock market in the hope of earning one-time, big-time and replenish your cut savings the soonest possible time, and without much effort.

Read more:  5 Sales Software Solutions for Small Businesses

Only, the investment option is  entered  on a more personal level, like infusing in a friend’s informal “credit” company (like payday loan capitalists) or worse, lending your savings balance to use in big-league gaming and gambling. For the uninitiated, it will be all downhill from there once you compromised your remaining life savings this way.

The best approach to replenishing your life savings is be patient. Like what we’ve said, expect the unexpected, and that includes expenses. In this regard, we proceed to how you can gradually revive your life saving and continue growing it even more:

LIFE SAVINGS MANAGEMENT LESSONS TO PONDER

Photo 10The basics are always the best, especially when saving money is concerned. Lest you forget, here are the valuable “basics” you need to keep in mind in making your life savings journey – from starting with the very first dollar to finally using your amassed thousands, maybe even millions – worth all the sacrifices.

  1. Every spare you have – just bank it! Even small amounts can build up into a bulky savings chest over time.  Just divert any extra cash you have into your account.
  2. Pay yourself first. That is, take out first a chunk of your money to “pay” YOUR savings accounts, instead of paying the boutique, the shoe store, the gym and the spa.
  3. Prioritize your needs and re-assess your wants. This should be elementary for all who are in the life savings phase of their lives.
  4. Think personal finance. Especially work on your budgeting and savings skills.
  5. Ditch bad and dangerous money attitudes. Resorting to multiple credit cards, debt facilities or payday loans just so you can keep up with the Joneses, for example.
  6. There’s always room for second chances. If you screw up in your life savings attempt the first time, just do it all over again.  Hopefully, with more brains and common sense the next time so you can really accomplish your life’s major goals.

Money should bring out the good in people and in situations, and a life savings that is managed well and spent well is one of the greatest joys in life. In the same way that we should not be caught up in working horse-hard but in working smart, we should also not be too caught up in  saving tight, but in saving right. By having a healthy view about life savings, and saving money in general, we enjoy the sweet benefits of having money – that is having it warm and ready to use when we need it the most.

Read more:  How to Get Ahead with your DIY Project

Got life savings management tips that you would like to add to our Guides chest?
Feel free to share them!

 

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. No stranger to small business hiccups and drama, having been involved in a few internet startups. Prior to his for-profit ventures, he has had managed corporate communications for a Kansas City-based Children International unit.

Related posts

Leave a comment!

Add your comment below.

Be nice. Keep it clean. Stay on topic. No spam.

Back to
top

Why is FinancesOnline free? Why is FinancesOnline free?

FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. Please note, that FinancesOnline lists all vendors, we’re not limited only to the ones that pay us, and all software providers have an equal opportunity to get featured in our rankings and comparisons, win awards, gather user reviews, all in our effort to give you reliable advice that will enable you to make well-informed purchase decisions.

Share
Tweet
Share