Tempted to Pull Money Out of Your Savings?

Ay, do you hear that voice too? The one telling you to dip into your savings to pay for the rest of your deudas? Not today Satanas! 👹 Don’t listen to it Mij@! Be strong.

We get it sometimes money escapes us and we realize we have spent a little more than we intended. Pero, it’s important to know how to avoid those mistakes so we don’t go digging into the wrong account. So persignate and let’s learn how to avoid being in this situation. 💰👀

EMERGENCY FUND

If you have money set aside for unexpected expenses, you will learn to prioritize lo más importante when it comes to emergencies. A dazzling new pair of botas de piel for winter isn’t exactly an emergency compared to needing new brakes for your car or fixing a water pipe to prevent further flooding. Emergency money is not considered savings because it’s dedicated to true emergencies and you’ve accounted for it already. Replenishing this account before it’s depleted will also get you in the habit of accounting for future emergencies and limiting other expenditures. Bien echo!

CASH ONLY

If you’re finding your budget is impossible to follow with the poder de “greiscol” of those plastic cards in your wallet, switch to a cash only system. Pay all of your bills and even savings contributions through auto debit so you can see exactly how much is leftover. Take out the leftovers and that’s all the cash you are allowed to spend. Similar to how latinos eat all the leftovers for days because nada se desperdicia en esta casa! This extra step will hopefully dissuade you from spending, especially if you don’t like to carry cash.

MOVE YOUR MONEY

Place your money in a different savings account from your debit card. This way you actually have to transfer it and wait for the transaction to clear before you can use it. You can also set up auto transfer to have enough to cover bills and regular spending every month but anything over that, it’s wise to leave that extra step to help curb impulse spending. Like when you said you would only eat as much pan dulce as you could buy with the coins in your pocket. Sensible choices!

BUDGET FIX

If you find you keep needing to dip into your piggy bank, it may be time to adjust your budget. Maybe your utility bill is higher from running the a/c to combat the summer heat, or you’re eating comida más picante! So then maybe your grocery bill needs to be adjusted or you could cook more at home and eat less take out. Also, never sacrifice comida picante, but maybe eat more of it in winter to keep you warm? Keeping track of all of your spending will help you pinpoint what is causing you to come up short. Those smaller daily expenses really do add up and could be throwing everything out of order.

FIND INCOME

If you find that your budget just doesn’t provide enough income to cover your basic expenses, it may be time to find a side hustle or maybe even a new job. That elote stand you’ve dreamed of running? You could start charging for the quince dresses you’ve been making. Or selling more of your delicious tamales. You might also consider your current employment and whether or not you could propose a raise in salary. Know your worth and/or give into your entrepreneurial jef@ side finally!

CUT SPENDING

If you’re in over your head on large purchases that were necessary but outside of your price range, you may need to temporarily cut other spending. Cut the cable television cord in exchange for a streaming platform or freeze your gym membership and take up sports con tus primos or some other outdoor activities for the time being. If that’s still not enough to make a difference, you may need to sell the car or your home or downsize to something that is more affordable. I know that isn’t what you wanted to hear, pero mij@ it’s just temporary. We’ve got goals to achieve!

REWARD YOURSELF

If you’re successfully on your own isla fuera de la tentación, then you should treat yourself with some dopamine rewards for reaching your savings goals. Buy yourself something nice after reaching $1,000, $10,000, $20,000. Pero buy according to the size of savings reached. In other words, don’t buy a new car after you’ve saved $1,000. No exageres! Bonus points if you buy stock and let this reward continue to reward your future!