When Should You Touch Your Savings?

When Should You Touch Your Savings?

Completing a savings goal or just funding your savings does not happen overnight. It’s a process that can take years. There’s usually an end goal in mind, and those goals are typically long-term. Sometimes when you see those savings racked up, you get antsy and want to use them. At what point do you dip into the savings? Do you go into them before you’ve met your goal amount, before funding your projects or ventures the money is set aside to be used for, or can you ever use them before that time? For the answer to when should you touch your savings, follow along.

What Types Of Savings Do You Have?

It’s important to note what types of savings you have. You should always have at least an emergency savings account with one year’s worth of funds in it. I also suggest an investment account for retirement and a personal saving account for other ventures. If you do not have a fully-funded emergency saving or it’s all you have, do not touch your savings! I also venture to say never dip into your retirement accounts until you are ready to retire. Your future self will thank you. The only account I would personally touch if needed is a personal savings account.

Good Opportunites

A personal savings account can be used for a variety of reasons. Any project, ventures, and opportunities you hope to be involved with should have allocated funds in that account. Likewise, if a great opportunity pops up and you want to pursue it, that money can be used to fund those opportunities. This is especially true if your savings goal has either been changed, met, or you no longer wish to pursue them. For example, I’ve saved enough for a down payment on an Airbnb property. With the changing housing market rate, I decided that is no longer for me. Because I’m not using my savings for that opportunity, I am allocating the funds for a new venture in gourmet mushroom farming.


Savings don’t just have to be for long-term goals and you do not have to hoard them until you’re 60 years old. If you find that you want to take a long vacation out of the country, need money to fund much-needed self-care activities for yourself, or want to use it for some value to you, don’t be afraid. I’m not saying spend everything you have, but I am saying that when you feel that something is of value to you and you have no other funds to utilize, you can pull from your savings. I’ve seldom done this to finance fertility treatments and pay for low-cost vacations.

Savings are for rainy days, emergencies, and other uses. While I do not advocate touching all your savings accounts, your personal savings account is up for grabs for specialized purposes. For more information on when you should touch your savings, watch the posted video.

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