Guess what…studies show that NOBODY has money saved for a rainy day. Even those making the big bucks would be in big trouble if they were to hit a financial snag – a broken down car, a period of unemployment, etc.
Truth is, unexpected expenses (often emergencies) are a lead reason people end up with debt. If they do not have the money stashed away, the expense – whatever it is – goes on a credit card.
We all know we should be saving, but it is just too easy to spend. Consider ways that you could put away a dollar every day (or if you really want to get aggressive – try for $5). A few ideas we’ve heard (beyond don’t buy a coffee, pack your lunch, etc.) include:
- For those who are employed and have paychecks direct deposited, open a second account for rainy day savings, and assign an amount of your paycheck to be directed to that account. The idea – out of sight, out of mind. If it is not in your checking account, you will not spend it.
- Every time you make a purchase, put any change you get back in a jar when you get home. This is “off limits”. At the end of the month, count it and deposit it in the bank (ideally in a savings account instead of in your regular checking account). There are variations on this – some only save the loose coins while others include ALL change including dollar bills. Make your own rules.
- Set goals and make savings a game. If you watch some of the TV shows about extreme couponing and black Friday shopping, you will notice 3 actions each couponer/shopper takes: 1. they always set a savings goal for every trip, 2. they always have a maximimum budget, and 3. it is a game to them (as crazy as that may seem). They get a crazy high when they reach their goals.
Not saying saving is a blast – but it is important. Make a plan and make the most of it!