WHAT TO DO WITH YOUR SAVINGS

Now that you have created savings, your next problem is what you are going to do with your savings.

If you are going to spend your savings in buying things that is not included in your plan, then that will not be called savings anymore. It can be categorized as expenses. This is because you did save for the future. And that future is actually future expenses. It is like you just delayed spending your money. Instead of spending your money right away you put it first into savings.

Remember in my previous post HOW TO CREATE SAVINGS, you can notice that there is also a 10% portion of your income that goes to “emergency fund”. That “emergency fund” must be responsible for your future expenses or unexpected expenses and not your savings. This is so because your saving must have an appropriate purpose in which you need to use to.   

So what are the possible things that you can do with your savings? You need to check your goal or purpose as to why in the first place you created savings. If you saved for the purpose of buying the top of the line gadget, then do so. If you saved for the college education of your children then that savings must be used for their college education. If you saved for a travel abroad then it must be spent to that. If you saved in order to buy a house and lot then it must be spent in buying a house and lot of your dream.

But if you don’t have a goal or purpose for your saving then you might be facing a problem. Why? This is because you might be tempted to spend all of your savings in order to gratify yourself. After all that is your money and you can do anything you want with that money. You might say to yourself that you sacrificed a lot in order to create that savings and now that you have that amount it is time that you enjoy your money. Though you will not violate any law by doing that, the end result is you might lose all of your savings and you will be back to zero once again. And hopefully you won’t find yourself indebted once again.

There are ways in which you can use your savings wisely, just in case you don’t have a plan or purpose for it as of the moment. Again, as I mentioned in my previous blog “How to create savings”, you can transfer some amount from your savings into your investment. In that way you can reinforce your investment. That will be a big lift most especially if your investment is doing well. Another option is to use your savings to acquire some assets that can produce passive income for you. Those assets, of course will naturally be a part of your investment.

You can also use some part of your savings into charity work. After all since you are now doing financially well, it is also a right thing and proper time to share your blessings. Why I did say that you are now doing financially well? This is because you are able to create savings that only means that you have now extra finances that are at your own disposal. Besides I strongly believe in sharing. If it is possible, do share the blessings, always, no matter how big it is or small.

There may be another option that you can think of with what you can do with your savings. Just use it wisely and avoid ending up losing all of your savings else you will have to start once again from the very beginning.