So 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!
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.
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.
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.
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:
The 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.
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.
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