Whether you’re saving for something fun, like a tropical getaway, or something practical, like a ‘just-in-case something happens to the house’ fund, saving can be daunting. These six ways to save for a rainy day will help set you on the road to your savings goals!
Ways to Save for a Rainy Day
Have a committed savings plan
Sometimes, just having rules to follow can help keep us on the straight and narrow. Rather than just saying that you’re going to save, take a more committed approach. Look at your budget and identify what you can spare each month. If it’s 5%, arrange for monthly auto withdrawals for that amount. No ifs, ands or buts.
Pick a different bank for savings
You could use your local checking or savings account, but having easy access to your fund could be tempting. Also, there are several online savings banks, like Synchrony, Barclays or Goldman Sachs Bank USA, that offer higher interest than your traditional bank. These FDIC-insured banks offer between 1.75% and 1.80% interest and require no minimum balance. You should be able to easily transfer funds from your regular bank, so no excuses!
Keep the change apps
If your paycheck has little to no wiggle room, try a “spare change” app, like Acorns, Digit or Stash. They all work a little differently, but essentially, they regularly take tiny bits of money from your bank account and save it for you. The amount is so small that you shouldn’t feel the pinch. And over time, you can save a lot this way!
Keep the change (literally)
If you’re not one for apps or online accounts, try putting a jar by the door. Every time you come home, clear your pockets of spare change. This simple act can help you save more than you’d expect.
Save the extra cash
It’s exciting to receive tax refunds or commission checks, and even more exciting to spend that money, but instead, pretend it doesn’t exist and sock it away. Try this plan for a while. You’ll be stunned by how much you’ve set aside.
Reconsider little luxuries
No matter how little or how much money you have, you are probably treating yourself to something that you could do without until you reach your saving goal. Whether it’s that monthly pedicure or car wash, or that trip to your favorite lunch spot 5 days a week, the money you’re spending could be money you’re saving.