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 5 ways to save for a rainy day will help set you on a successful savings path!
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 percent, 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. Instead, move your savings fund to an online bank, like Bread Financial, which offers an Annual Percentage Yield of over 5 percent and only requires a deposit of $100. You can also arrange for those automatic withdrawals that I mentioned earlier.
Keep the change apps
If your paycheck has little to no wiggle room, try a “spare change” app, like Acorns. This is my referral code. When you sign up, we both get $5 invested (thanks!). There are others to check out, like Chime or Qapital. 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! 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
It’s exciting to receive tax refunds or commission checks, and even more exciting to spend that money. Instead, try pretending it doesn’t exist and sock it away for a while. You’ll be stunned by how much you are able to set aside by taking this approach.
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 savings goal. Whether it’s that monthly pedicure or car wash, or that trip to your favorite lunch spot a few days a week, the money you’re spending could be money you’re saving.
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