4 Ways to Effectively Save For a Rainy Day

Rainy days: They happen to the best of us. We get in our cars to prepare for work only to discover a flat tire, the heat randomly stops working, we receive the news that we are no longer employed and the list goes on and on because sometimes life just happens. While it’s never healthy to live life always expecting the worst it is actually of great benefit when you plan for the unexpected before it comes. Planning ahead does not stop the unexpected but it does stop the unexpected from side tracking you and your family. Below are just 4 ways we all can effectively save for a rainy day.

Reduce Your Spending

One of the first and critical steps you can take when preparing to save for a rainy day is to simply make sure you begin to reduce your spending. Believe it or not reducing your spending actually has the capacity to increase your income. Ever heard the quote that you can tell where someone’s heart lies based on where they spend their money? It is absolutely true. If you take the time to look through your bank account you will probably notice that a large percentage of the things you buy have no real value to your life. That cup of coffee that you must have 3 times a day? Reduce to 1. That bag of chips you always buy during lunch? You don’t need it. One of the primary ways to save money is to simply stop spending so much of it. If it helps begin to list out the things you buy based on wants and needs and then only buy what you need and not what you want. Taking this one extra step could potentially save you hundreds if not thousands each year.

Pursue Multiple Income Streams

There’s a famous quote that’s often tossed around the business world that reminds all of us to “never put all your eggs into one basket”. This quote simply means that in order to be successful in your finances you must always have multiple streams of income. Most people would have absolutely nothing in their bank accounts if today they were to lose their jobs because they have become so dependent on one source. Pursuing multiple streams of income not only gives you financial security but it gives you additional leverage when saving. If possible, consider completely saving the money that may come from your side hustle. Saving that money in it’s entirety will put you in the mindset that this money is never meant to be spent.

Find a Bank That’s Right For You

Finding a bank that’s right for you is essential when saving for a rainy day. While some experts will suggest that you keep your money outside of a bank many still suggest that you actually find a financial institution that will not only keep your money but will add interest to your account over time. There are several banks across the country who will work with you to insure your money is protected and that you can easily withdraw should a rainy day come.

Don’t Stop

Saving for any long term goal can be challenging especially when you’re already living on a shoestring budget; however, the key to successfully saving for a rainy day is to never stop. Refuse to get discouraged and even when it seems like you’re making little to no progress just keep saving. It’s always better to have something in your rainy day fund as oppose to nothing at all.

Have you recently decided to start saving for a rainy day? Leave your comments below.