A rainy day fund is something we all should have. It’s the best way to save for our futures and it’s always a good idea to have some financial security to fall back on, just in case. When you’re putting a little money away where you can, it’s a great feeling. You’re investing in your future which is something you should be proud of.
However, if your weekly paycheck only stretches so far, saving little by little can feel disheartening. Of course, slow progress is still progress but it’s natural to want to find other ways to increase your savings.
Read on for 6 ways to boost your rainy day fund.
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Bye bye credit card
Are you paying interest on the money you don’t really have? Using your credit card when funds are low makes sense, but it can create a whole host of problems if you start to rely on it to get you to the end of the month. Avoiding using your credit card where you can and instead, spend the money you do have. Otherwise, all your rainy-day funds will simply be used to pay off your credit card debt each month, creating a vicious circle you won’t be able to escape.
Never underestimate the importance of a detailed budget. Especially when you’re trying to save. When you create a thorough budget you get to see your weekly outgoings and incomings, you’ll be able to see how much you’re spending each month and where you can tighten those purse strings. Take a look at your bills, your food costs, travel expenses, entertainment, social costs etc and scrutinise everything fully.
Sell the things you don’t need
Old CDs and DVDs, clothes you haven’t worn in over a year, shoes, jackets and accessories. Items like these can all be sold for some straightforward cash. It’ll also reduce some of the clutter in your life.
Make saving automatic
When we get paid, we sort the bills, buy food and pay for any other monthly expenses. We then have to overcome the mental hurdle of actually placing our money into our savings. Sometimes it’s quite difficult to separate your money into separate accounts. This is why automating your savings works. Set up a direct debit into your savings account and the money will already be safe in your account before you’re tempted to spend it.
Cut out the extras
Cable TV, takeaways, streaming services, magazine subscriptions. All these extras take a huge chunk out of your monthly wage and could be put into your rainy-day fund instead!