6 Ways to Save for a Rainy Day
Everybody needs at least a small nest egg tucked away—something to ease the mind if an emergency arises or an unexpected expense pops up. Of course, knowing that and actually creating it are two completely separate things. Here are some things that you can do to save money and build up that savings account.
1. Sell Your Car
No really—sell it. Taking public transit saves you lots of money (not just on car payments but on insurance payments, gas, maintenance, etc) and is better for the environment. If you absolutely must have a car (if you live somewhere with no transit or need a car for work), take the money from the sale of your newer car and use it to buy a reliable used car. Work with a dealership like Ken Garff Used Cars to get a good deal. Buy the car outright and tuck what you’ve got leftover into your savings account.
2. Clean Out Your House
If it does not have tremendous sentimental value and you have not used it within the last twelve months, it goes. Be ruthless as you go through every room of your house. Take the things you’re getting rid of and sell them. Put them up on eBay or Craigslist (beware of scammers) or have a yard sale. Put the money from the sales of these things into your savings account.
3. Budget
Create a budget for you and your family. Give yourself a 10-15% window for wiggle room on every line item of your budget. This way if something costs slightly more one month than you had planned you won’t freak out. If it costs less (or is billed for less) take the difference between what you actually owe and what you’ve budgeted and stash it in your savings account.
PRO TIP: As you pay off debts, keep making your monthly payments—but make those monthly payments to your savings account.
4. Daily Transfers
Every day, take the cents in your bank account and transfer them to your savings account. For example, when you check your bank balance in the morning and see $142.95, put those 95 cents into your savings account. Every little bit helps!
5. Set up a Regular Deposit
Set up a regular deposit of at least $10 a week (pack a lunch twice a week instead of going out to eat) to be transferred from your checking to your savings account. This way you’ll save without having to think about it.
6. Find Savings in Your Daily Life
Use the library instead of buying media and entertainment. Buy generic brands instead of name brands. Shop at thrift stores instead of department stores. Learn how to make your own wherever possible. If you need more inspiration, check the archives here! This website is full of every day savings tips from coupon codes to use locally to articles on how to stretch your wardrobe.
There are lots of things that you can do to build up a savings account so that you’re covered on that rainy day that you hope never comes. These are just the beginning. What are some of your favorites?
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