All of us make mistakes, but one of the biggest mistakes is not thinking about the future in terms of finances. People keep spending their money or simply go with the flow until something serious hits them. You must have heard of stories about people who were rich till a certain stage in their life and then all of a sudden they go bankrupt and suffer a severe financial loss.
Your savings are what help you the most during such times as money is what you need to survive during rainy days like these. It is important to earn and invest so that you don’t have to sell your house or the only belongings you have during hard time.
But how do we increase savings for a rainy day? We have gathered some easy ways to do so.
- Start Small
Don’t be too hard on yourself by saving insanely huge amounts of cash for the rainy day fund. Take it easy and start small as you eventually grow over time. What you need to do is keep a strong track of your expenses. It is a great idea to record them on your cell phone, laptop, or any software typically designed for this purpose.
Set aside a small/fixed amount as soon as you receive your salary. Don’t leave it towards the end of the month because by then most of our funds have exhausted as we keep spending.
You may also seek help from a professional financial planner while you are at it.
- Controlled Spending
Live life to the fullest, but not at the cost of your financial well-being. One can only ensure their financial strength by making wise choices when spending and saving money. Buy what you need and will be useful for over a long period and say no to things that bring no value to your life. Always go for economical services such as EzyUpHire.
However, this does not mean you cannot have all the fun. You can still pretty much do it without breaking your bank. Shop from sales, enjoy deals, and get vouchers!
- Make Your Savings Out of Sight
Money is attractive! You keep spending it till you have it even when there is no need to spend even a dollar. Sometimes we keep spending to a point that we are left with no choice, but to use our savings for the next series of expenses. This is wrong!
We suggest you keep your rainy day fund out of sight, but accessible so that you can use it when you actually need it. Keep your savings account in an entirely different account and don’t activate its debit card.
You may also consult your bank for the best saving options available for you.
- Don’t Get Addicted to Credit Cards
You cannot save enough if you keep shopping using your credit card. This way you keep going into debt and the consequences reflect later in life. Make it a habit to pay with cash or debit card wherever possible.
Saving for a rainy day does sound like an impossible job, but once you get on it, it gets easier every time.