When you dip into your savings, do you replace the amount or just keep saving as normal?

[RainyDayRealist]

Say you’ve been steadily putting money into your savings and then you have to take some out, maybe for a car issue, a holiday or an unexpected bill. Do you make a point of replacing that exact amount or do you just carry on saving from where you left off?

I’m trying to build better financial habits but I’m wondering how others think about it. Is “replacing” a realistic goal or do most people just move on and keep saving as usual?

Are these savings meant as a fund for the car issue or unexpected bill examples* you mention; or is it a savings pot for something else entirely?

If I was saving for a specific thing and had to use the money for something else, I would probably do my best to "refund" myself; but if it was just my "shit happens" savings, I'd carry on as normal.

But at the end of the day, any savings are good, so don't be too harsh on yourself if you have to use them for a genuine reason, unless it means your budget isn't quite right - say if you are using savings for food or petrol every month - and that's a bigger issue to work on.

(*I would never blow general or specific savings on a holiday though. Make a pot for holiday and use that.)

If it comes out of general savings, then we just carry on as normal.

If it comes out of our holiday pot for example, then we'd replace it!

If I "borrow" from my savings for day to day/end of the month stuff then my rule is that I have to put it back in full plus 10%. Makes me think twice as to it I really need to take it.

I keep a theoretical "shit happens" pot at £50/month, max level £1000. This seems to cover the amount of "shit happens" incidents in my life annually, give or take.

I try really hard not to do it because I’m losing interest when I do, but if I have to dip into savings I always replace it the next payday and with at least £20 extra.

I save what I can afford not to touch and it goes into an isa once the interest is added to my regular savers accounts.

I usually keep enough in my current account to cover emergencies or holidays. I don’t take anything from savings.

Surely this would depend on what you can afford to do?

I have different savings pots for different things. Emergency pot, short term pot, holiday pot and then long term savings. Short pot used for things like car repair, buying big purchase, holiday pot for Xmas, birthdays, summer holidays and annual holiday. Emergency is incase I lose my job and long term is for retirement or house purchase what ever comes first 😂

I have a house repair / renovation account I put £550 a month in. I will use for any emergency repairs and then my projects once there is enough. This month is double glazing at front of house .
I have a holiday fund I put £150 a month in , that just builds up until I need to pay for a holiday .

I expect constant spend in and out of these 2 .

I have long term savings I put £150 a month in - these are if I lose my job / get sick / or if nothing happens hopefully let me retire a couple of years early . I haven't touched this one for eight years and the intention is not to unless I have to and let it grow.

I have emergency amount I don't touch and then a bit on top of that which gets topped up and is savings towards an item e.g a new bed. Luckily, I've not had to dip in the the emergency amount but I suspect in the next 3 years my car will pack up.

Love this idea!

You need a separate pot for contingencies. I add up all my big expenses and not more for repairs etc and save monthly for those. Savings are separate, fixed and therefore don’t need to be touched. I used to dip into my savings all the time and never hit my target.

now I do but only just.

It depends.

I have regular savings set up - salary sacrifice to credit union at work before I get money into my bank account, standing order for monthly savings to an online account etc. So I am always putting money away, and topping up on months I have spare.

it also depends on what I dip into them for, and for how much. So my credit union is for holidays and Christmas type annual spending, and I am fine spending that and just keeping going from where I am. But I recently took out a decent chunk from another account for a medical emergency spending - and didn’t need to spend as much as I took out so I put back what wasn’t spent and will also put any spare back into that specific account for the next while.

I’ve been saving for a holiday and then dipped in to buy a kitchenaid. I’ll keep saving as normal

Replace the amount, then keep saving as normal.

I refund myself if I use savings for day to day, which I needed to do for October. I have to get back to sinking funds.