While planning for a ‘rainy day’ can be tough, it is also super important.
Many people will proactively put money aside for an upcoming holiday or luxury purchase, but will often neglect to plan (and save) for the unexpected.
By planning in advance and having savings at the ready, you’ll be able to avoid any unexpected ‘hot water’ type situations – whether it be a surprisingly large bill to pay, costly car troubles or a family crisis that renders you unable to work for an extended period of time.
While it is important to save for those metaphorical ‘rainy days’, actually putting cash away for no ‘immediate purpose’ is often easier said than done.
Thankfully, there are a few easy tips that everyone can implement to help them easily save money for those ‘rainy day’ or ‘hot water’ situations, including:
Tip 1: Saving a percentage of your regular pay-check
Given that you’re probably already saving a percentage of each pay-check for a much needed holiday, or that new designer item you have been eyeing off, it shouldn’t be too much of a stretch to allocate some additional funds to a ‘rainy day’ account. Try saving 10% of each pay-check for those unexpected occurrences – it might not seem like much, but it could really pay off in the long run.
Tip 2: Have a separate bank account
Money in a ‘rainy day’ account should be separate from your regular savings account, so that you can easily differentiate between the two. It is also a good idea to ensure the account cannot be accessed via ATM or EFTPOS, as this will help to reduce any impulse spending.
Tip 3: Review your banking situation.
By reviewing the lender you currently bank with you may be surprised to find that there is another lender offering a stronger interest rate or savings account incentive that trumps what you’re currently receiving. Many people believe that loyalty to one lender will get them a long way when it comes to getting the best deal, but this isn’t necessarily the case. By shopping around and knowing what is available, you can be confident that you’ve got the most suitable banking setup for your individual circumstances.