5 Savings Strategies you Should Never Adopt!

By Mrunal - Updated: December 13, 2018

In this Article

Worst Things You Can do with Your Savings

Each one of us has hopes and dreams of a better life. Although they say that money isn’t everything, it actually is. One of the dumbest things you can do with your money is not investing it properly. Seek guidance to secure a bright future for your family.

When you chalk out an investment strategy for your hard earned money, start small and be real (don’t get too ambitious!). This baby-step saving strategy is bound to snowball into something substantial in the future. Remember, if you and your partner make one imprudent financial decision, your saving cycle could disrupt and not reap you benefits. So, here are some not-so-smart savings strategies you ought to avoid at all costs.

Worst Things You Can do with Your Savings

1. Boxing It Up

While there’re many people who decide to stash their cash under the mattress or in a shoe box, it isn’t advisable to do so. It could be among your worst savings strategy ever. It might seem that you have cash at your disposal, but such hoarding exposes that money to theft, besides bringing you no return. When you invest it in a bank, you have the chance to maximize your savings while keeping it safe.

2. Don’t Bother About It

A savings account can do you a world of good as far as saving money is concerned. However, not putting any money into the account is not how you should go about it. Set aside a certain amount every month and put it away in your account. Also, try and stick to one debit card. At times, when you have plastic money, it’s easy to slip into the temptation of shopping and other things.

Don’t Bother About It

3. Keep Splurging

A savings account is meant for, well, saving. It doesn’t really help if you keep dipping into it every once in a while. In fact, it’s among the worst possible things you can do with your savings. This is especially the case when you’re out window shopping at the mall.The next thing, you know, you’ll end up withdrawing cash from the ATM to buy stuff you like. If you continue this pattern, your hard-earned savings will dwindle in no time.

4. Pay Someone’s Debt

Helping out an old friend or a cousin from a financial mess can prove to be very risky, especially, if they fall in the “not wise with money” category. Paying such debt off can leave your savings account in a pretty bad condition. Therefore, don’t dip into your savings to bail someone else out. Of course, lending money for a genuine cause is something that shouldn’t hurt at all.

5. Pay Bills

Your monthly bill payments may get deducted from your savings account, especially, if they are linked to that account. Draining your bank account will prevent you from achieving certain life goals that you might have planned. Managing your finances judiciously is a lesson we should all learn.

Trust someone with financial expertise to steer you in the right direction. Because at the end of the day, the future of your children and family also depends on the investments you make for them. So, it’s time you make a smart move for a great tomorrow.

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