Even if you’re dutifully saving money each month, regularly drawing on those funds to pay for daily expenses will slow down your savings growth. It could even cause you to slip backward.
“Oftentimes, as people set up budgets, they do so with an ideal world scenario in mind — one that often requires more restraint than is realistic,” Greene said. “So, people should consider tracking expenses for one to three months at the start to see where their money is going. And with that information, establish a budget that is highly personalized, including some unspeakables, such as avocado toast, fresh-pressed juice or a tried-and-true latte habit.”
Additionally, you should analyze why you need to access your savings for non-emergencies. Are you trying to save too much, leaving you short in other areas? In that case, reduce how much you save and commit to not accessing those funds. Are you regularly receiving big bills for which you haven’t budgeted, such as annual auto insurance? Budgeting tools like YNAB (You Need a Budget) can help you figure out how to avoid getting surprised by bills.