Putting money aside for a rainy day has always been sensible advice. The amount of money and what counts as a rainy day, however, will depend on you and your personal circumstances. There are so many different reasons to save up, and not all of them involve waiting for disaster to strike. Perhaps you are saving money for a once-in-a-lifetime trip overseas or a new home. Sometimes, however, you might be faced with another potential expense that you may be tempted to dip into your savings for. Here are some of the best and some of the worst reasons to break into your savings.


While it might seem sensible that in the event of an emergency, you should fall back on your savings, this isn’t necessarily the best decision. When budgeting and dividing up your income each month, you should be putting aside an emergency fund as well as savings. This is because using your savings as an emergency fund means that you would be making it more difficult for your future self to recover from the emergency, whatever it may be. Of course, not everyone has the luxury to save both for emergencies and other savings, but if possible, it’s best to keep these two areas separate.

Shopping Sprees

Indulging in spontaneous spending on items you want rather than need is another ill-advised way to use your savings. Unless you are deliberately and knowingly putting aside money to treat yourself in the future, it is best to limit your disposable income spending so that you can save more. Give yourself time to think about a potential purchase before going through with it. After sleeping on it, you might decide that you didn’t want it that much after all, and your savings account will thank you.


A better way to direct your savings is to divide some of it for investment. It depends on the risks you are willing to take and your personal knowledge of investment opportunities but investing your money can be a great method of seeing it grow rather than stagnate and go to waste. This option doesn’t come without its risks, as mentioned already, so make sure to do plenty of research before putting your money at stake.

Estate Planning

While it’s important to save up and enjoy your money throughout your life, another good way to use your savings is to plan for its purpose after you’re gone. There are many options for your money, such as donating it to a cause that is close to your heart or giving it to family. An estate planning attorney can help you to arrange your assets and finances so that your loved ones aren’t burdened with uncomfortable or difficult decisions after you have passed.

Saving for Something Important

If you have always wanted to go to a particular part of the world or move house, savings can help you reach these goals. Frivolous spending and mismanagement won’t get you far, but putting money aside for what matters to you most is definitely worthwhile.