Top 7 Strategies to Save For a Rainy-day
Building up any savings fund requires commitment and discipline. The amount of your income doesn’t matter. On the contrary, what counts is that you mind your own earning, paying, and saving capacities. That way, you can find out how much money you can work with.
According to financial advisers, a rainy-day fund is different from an emergency fund. The latter refers to the fund you set aside to keep you afloat temporarily in case you’re jobless or if you cannot work for the time being.
On the other hand, a rainy-day fund is what you put up gradually only to use for a significant unforeseen reason. For example, medical or hospital bills, house or vehicle repairs, and other unplanned and unavoidable situations.
Just how do you save for a rainy day? It is not difficult at all. Here’s how:
Be clear about why you’re saving
A rainy-day fund is not meant to buy you what your heart desires. Instead, it is created and left to grow for more substantial, unexpected, and “life-threatening” events.
If you have the means to save for something that you want, keep this amount separate from your rain-day fund.
Choose your savings tool
Today, banks and other financial institutions offer a broad range of alternatives. They base this on your risk profile, financial objectives, and the amount of money you’re putting on the table.
All you need to do is to research, visit the bank, and listen to a trusted advisor who can answer your questions. Don’t put all your eggs in one basket, but consider more than one savings option.
Record your goal and progress
Make an accounting of your rainy-day targets for specific milestones. It is natural for you to experience some bumps along the way. For instance, a medical emergency may occur before you reach your desired target. However, if you keep growing figures “in black and white”, then it will be much easier to make adjustments.
Take it easy on any windfall
Whenever you find yourself with extra money, stave off the temptation to indulge in a shopping spree. From the onset of your saving-for-a-rainy-day journey, save some, if not all, of any extra income.
Collect your “change”
Your parents might have given you your first piggy bank.The concept should remain when you’re all grown-up and working. Get a large jar or container with a sealed lid. In the lid, start collecting any spare change you have. It’s not just a decorative item in your room. Who knows! It might come in handy when you need to “break the glass in case of a fire.”
Take advantage of credit card rewards
Today, credit card companies have reward features. What are the benefits of these features? They enable you to earn points in exchange for items. All you need to do is select your desired item and work towards earning that special reward. This way, you don’t need to save up for and spend on such stuff. Just use the money to add to your rainy-day fund.
Throw away those bad habits
If you’re not ready yet to say goodbye, cut down on them. If you’re dead-set on saving for you and your loved-ones, then you should be willing to compromise.
To convince yourself to get rid of the vices, to compute for the daily, weekly, monthly, and yearly costs of maintaining those habits. You’ll be surprised to realize how much money you spend on them.
In conclusion, you better start saving for your rainy day now. It’s all a matter of discipline and determination.
More in World News
Arctic Ice Shrinking at Alarming Rate as Scientists Reveal Shocking Figures
The ice caps and glaciers around the world are melting at an alarming rate, making scientists extremely worried about global warming...April 19, 2020
Steven Spielberg’s Remarkable Transformation from Struggling Film Student to Hollywood’s Creative Genius
Hollywood is indeed a hotbed of celebrities, and billionaire Steven Spielberg has mastered the art of wading through the industry’s murky...April 19, 2020
Leonardo DiCaprio’s Generous Gift to Ecuadorian Farmers
Runa, a brand that manufactures naturally caffeinated drinks made from the Amazonian leaf guayusa, has received overwhelming support from a number...April 19, 2020
Simon Cowell Pulled a Hilarious Prank on David Williams and Won $1,000
The relationship between Simon Cowell and David Williams always promises to bring some drama whenever Britain’s Got Talent is on. The...April 14, 2020
Yon Won’t Believe How Much Kylie Jenner Makes Via Instagram
Kylie Becomes Youngest Self-made Billionaire Kylie Jenner is one to take long before she makes the headline, although this time it...April 14, 2020
The Truth about Charities: Why You Shouldn’t Donate Your Old Car
Thinking of giving away your old vehicle to charity to lower your tax burden? It may not be as simple as...April 14, 2020
After Years Spent Eluding the Authorities, Time Finally Caught Up with These George Clooney Impersonators
Celebrities are not normal people, and neither are their problems. We often hear crazy stories about obsessive fans who are willing to go...April 14, 2020
After Being Named the Richest Female Music Artist, Is Rihanna Contemplating Retirement?
For Rihanna, 2019 was the year she has been looking forward to all her life. How many times has the singer...April 13, 2020
What Financial Meltdowns Can Teach Us About Cyber Attacks
With global economies becoming increasingly dependent on digital technology and internet connectivity, experts are becoming concerned about the growing cyber insecurity....April 13, 2020