Why is it important to save for a rainy day?
Do you have money set aside for a rainy day? Are you prepared for surprise expenses such as car repairs or other major necessary expenses such as education, or even retirement. Do you have the funds to just go on a much needed vacation when you get the chance? If the answer is no, then you should definitely consider setting aside a little nest egg.
Did you know that financial advisors recommend having enough money set aside to cover at least three months of monthly expenses? Your goal should be to set aside as much of your income as you can each year.
Here are some tips to help you grow a financial buffer and save for that rainy day:
If you are borrowing on a credit card it may take a long time to repay your debt, especially if your card carries a high interest rate. Acquiring a personal loan from a bank with a lower interest rate on a payment schedule will allow you to be debt free within a shorter time period and cost you less in the end. Cut up your credit card or reduce the limit to a level you can easily repay within the month.
Setup a Savings Account
Elizabeth Lampman is a coffee-fuelled Mom of 2 girls and lives in Hamilton, Ontario. She enjoys travelling, developing easy recipes, crafting, taking on diy projects, travelling and saving money!
My hubby is the king of saving and has taught me so much since we were first together. He not only likes to have an emergency fund, but we also have a back up fund TO the emergency fund lol. They both have to be at a certain amount minimum, and we always add on to them every pay. Because of that, we have no debt and it’s so easy once you get started and definitely smart to have money aside for a rainy day or emergencies 🙂
Those are all really good tips. It definitely helps to make a habit of it and to keep track of your budget. My partner is notoriously bad at this, so I usually manage the finances.
Whenever I want to make a big electronics purchase, I consider whether I really need it now, because I know that if I just wait for the next version to come out, the one I want right now will be cheaper. No, it won’t be the latest thing anymore, but it will still be able to do all of the things it’s capable of today.
thanks for all the wonderful advice, I think it is so important to save for a rainy day cause none of our live’s are going to be all sunshine and paydays.
It’s so hard to save money but I definitely do my best.
Thanks for the reminder of how important it is to save. Putting a few dollars away each week adds up, and even if it’s only a small amount it’s that much more than you had before.
It is always good to save for a rainy day. WIth the world job market we can always depend on that job as before. I am a saver to begin with, if I dont have the money for it – I dont buy it. Saving even a little bit each time helps. Dump your change in a jar at the end of the day. You’ll be surprised how fast it can add up. thanks for the tips
Thank You for the great advice.
Great advice,I actually like to live within my means,i do not have any credit cards or loans and I never buy anything i do not feel it’s a necessity.
thanks great tips. Last month my daughter had a illness we needed an antibiotics for so thankfully we had money for a rainy day we could dip into to get her, her medication.
I think all your tips are sensible and manageable. It certainly makes sense to have some money set aside for emergencies. There is one area I need to work on. It takes determination and self-control and, maybe, a little time working out your figures before you decide to save or spend. Thank you for these tips.