Why You Should Start Saving For a Rainy Day
So what is a rainy day fund? And why should you be saving for one?
Saving money on a regular basis is always a smart move. It gives you a supply of cash which will help to cushion life’s blows if an unexpected expense comes along.
This is where keeping a ‘Rainy Day’ fund comes in handy. A ‘Rainy Day’ fund is an amount of money that has been set aside for emergencies or unforeseen events.
Saving like this helps take the financial sting away from unexpected costs, such as a lost phone, broken washing machine or car repairs. The first step to building a rainy day fund is setting aside some money, whether this be weekly or monthly, and saving it away.
It is recommended that you should have saved between 3-6 months expenditure at any given time. This should be enough to cover any short term scenarios and help you stay on your feet.
So how do you find extra cash every week or month to save away? Here’s 5 tips on how to easily start saving enough money to set aside:
- Bring your own lunch to work
- Quit smoking
- Avoid expensive days/nights out
- Take public transport
- Make a shopping list
Bring your own lunch to work
If you’re buying lunch at £5 a day you could be saving over a whopping £1000 a year! Thats a lot. Start bringing a packed lunch and you could save hundreds of £££ every year.
Giving up smoking isn’t just good for your health but it can really lend a hand to your bank balance too. The average smoker spends £8 a day on the expensive habit which equates to £240 a month and £1920 a year!
Avoid expensive days/nights out
You can save a lot of money by being extra careful about where you spend your free time. For example if you usually like to eat out try taking a picnic instead. This is super cheap and is still a lot of fun at the same time.
Take public transport
Start catching the bus or train into work. You’ll stop having to worry about getting a nasty parking ticket or paying parking fees. It’s also better for the environment and if you’re feeling really green you could walk - completely free of charge!
Make a shopping list
Budget your weekly food shop by always making a list before you head to the supermarket. This will help you to only buy essentials and avoid throwing away unneeded groceries at the end of the week. You will save more than you realise by doing this. Also another tip, don’t write your list when you’re hungry - you’ll end up buying more than you need!
Start saving with just one or two of these tips and you’ll begin to notice a big difference on what cash you have available. Budget your money properly and start putting away some cash in a Rainy Day Fund - you’ll be glad of it later.
The hardest part of saving for most people is starting. You can do this with a bank saving account or by using PiggyPot for iOS. All you have to do is sign up to the app and set up a saving pot for a Rainy Day.