How to Avoid Tapping Into Your Retirement Account

The old saying is true: It is never too early to start saving for your retirement. The longer you save, however, the more likely you are going to run into life circumstances and temptations to spend that money. How do you keep from tapping into those funds if you’re in need?

One of the best ways to leave your retirement money untouched is to remember that withdrawing it will lead to risks and penalties. You don’t want to lose compound interest. Think of retirement money as money you can’t touch because one day you’ll really need it.

Another good way to leave your retirement money untouched is a separate emergency fund. An emergency fund is three to six months worth of expenses. It can be a separate bank or savings account that utilizes the automatic savings system. Not only will you have a little bit of money from your paycheck going toward your retirement, you can save a little bit of money with automatic deposits into your emergency fund. Having this emergency fund will keep you from tapping into your retirement funds.

Saving for retirement isn’t easy but it will be rewarding down the line. Keeping track of your retirement is another great way to avoid touching it. If you check it every few months, and you watch the interest on it compound, you won’t want to touch it and risk losing interest.


Investing in other things besides retirement accounts can also save you from tapping into your retirement. If you invest extra money in stocks, you can watch them grow, and sell them if you’re in need of extra money.

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