Is it permissible to perform Umrah and pay Zakat with money saved from personal expenses deposited in the bank?

Umrah is a commendable and legally مطلوب (sought-after) act; indeed, it is one of the obligations if a person has not performed Umrah before. However, paying Zakat takes precedence over it. So, if after paying Zakat, there is not enough money left to cover the expenses of Umrah, its obligation is lifted.