Desperate Measures: When Should You Withdraw from Your Savings?

Have a pretty full savings account that is looking tempting right about now? Savings accounts can be tricky. You may start adding every paycheck or every other paycheck and once the account has been fattened up that unplanned road trip or mini-vacation does not look so bad. Whatever the case may be there is one question that usually comes to mind when opening or having a savings account, “When should you withdraw from your savings”? Not an easy question to answer. There is no certain time limit or definite amount that you need to take out. This mostly comes down to personal goal you might have set for yourself.

Before even opening up a savings account you need to keep in mind that one day you will want to withdraw it, furthermore, there needs to be a reason for the withdrawal. It is wise to open the account with a reason in mind be it for a house, a car, education, a vacation, future family planning or simply just a “rainy day”. Having a plan will help avoid the headache of a savings account that has become depleted from over withdrawing. If you did not open the account with a goal in mind, it is not too late. Start now, create a timeline for yourself.

Second, when it comes to when you should withdraw from your savings,one needs to prepare for a low check or any unexpected event. In this case having the ability to withdraw money from a savings account becomes extremely beneficial. These types of “unexpected expenses” may come in the period of your life when you are a parent of a small child. School expenses, a broken bone, a trip away from home, these items add up and the savings account has now become the best possible option to withdraw the necessary funds from.

Third, if you have reached the age of retirement and had deposited in a savings account, this could be used for those little extras that may come up. Although many people may have a retirement account, the savings account could be used as a supplemental source of income or used as needed.

The owner of the account may never even be the one that withdraws the money from the savings account, the owner has the choice to add another person or a child to use it for their college education. As mentioned before, there is no definite time or best time to withdraw. The one important piece of advise if you do decide to withdraw, is to keep an accurate log. The log will help you keep track of any transaction and can also be used as an aid later on if you would like to replace the money.
A savings account is a life saver that will also drag along that question with it, when should I withdraw?

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