We all have times when an unexpected situation means we need some money quickly. It is good practice to have a rainy day fund for such extreme times. Here are a few tips as to how to you can start managing your money in a way that leaves you some breathing space when the worst happens.
Before putting together a plan of payments you should put aside some money into your savings fund, as an incentive. It doesn’t have to be a massive amount, and if it isn’t something you can afford do not worry.
Treat it like any Other Bill
Treat the savings fund like any other bill. Whether you choose to pay weekly or monthly (depending on when you get paid) always put the same amount of money away at the same intervals.
Use a Different Account
Another way to help you keep up with paying into a savings fund for a rainy day is to have a different account set up for it. This means that you’re not looking at extra money in your current account and it isn’t as easy to spend it.
Have a Clear Idea About What Constitutes an Emergency
A rainy day fund is set aside for emergencies or long-term goals. Make sure you have a clear definition of what constitutes an emergency so you’re not prone to spending your money needlessly.
Putting money aside is a great plan, but isn’t always possible to start right now. At PiggyBank we can help you with a short-term loan to get you through until next payday. As responsible lenders we urge you to think long-term and start putting in place real savings for a rainy day.