Whilst saving for a rainy day may not feel like you are saving for anything in particular, a rainy day fund is one of the most important things to have. It is a great way to get yourself into that savings habit, as well as helping you with any future plans and goals that you might have.
Saving can be hard, however, especially if you are already feeling the strain financially. So we have put together some simple top tips and easy ways for you to save for a rainy day.
Where are you going to put your savings?
Before anything else you need to decide where you will be putting your savings. Whilst you could be tempted to hide it away somewhere in the house, this will make it far too easy for you to dip into and you also won't gain any interest on it.
There are many different savings accounts available that allow you to access your funds when needed but also offer you a good interest rate on what you are saving too. Look for an account that ensures you enjoy the best of both worlds and make the most of what you are saving each month.
You need to be realistic with your savings because whilst you might have grand plans of putting away say £300 every month, the reality could soon hit you and you'll realise that this simply is not possible on top of your other commitments. This will then leave you feeling disheartened; if you start small, you can always build up from there.
Start by saving £50 a month and if you end up having more money that you can put away, then do so. Break it up during the weeks into smaller chunks - then you won't feel the sting of putting away a large amount.
Cut down your spending
This doesn't mean doing away with all your luxuries but you might find that you can replace them with some lower cost options. This is a very simple but effective way of lowering your spending.
Look out for the little things like TV packages and other subscriptions. Maybe you'd be better off switching to another package and saving yourself some money. Are you spending lots of time eating out with friends? Take turns in hosting dinners and put the money you would spend on going out into a savings pot.
By doing little things like this, you won't feel like you are scraping the bottom of the barrel and pinching those pounds but you will soon see it build up and your efforts will begin to pay off.
If you are struggling to think of more ways to cut down your spending, then this article by Life Hack might be able to help you.
Put loose change in a jar
Any loose change that you have put this into a piggy bank or a jar. This might not sound like it will do a lot but over the time it will build up and you will be amazed at how much money you have accumulated.
Copyright © 2017 Article was made possible by site supporter Rachael Matthews.