The Best Advice You Could Ever Get About Creating A Rainy Day Fund

Feb 28, 2021 | Lifestyle

If you are stuck in the gloom of uncertainty, now may be the perfect time to start planning for the year ahead, when lockdowns and restrictions are a thing of the past. 

Plus, with an extra bit of cash, you’ll be able to do some fantastic things somewhere down the road, post the Coronavirus pandemic.

1. What are rainy day funds all about?

A rainy day fund is an amount of money you set aside for something special or those minor emergencies that life may throw at you, outside the everyday living expenses. 

You’re probably wondering why it is called a rainy day fund? Just like days when you have to adjust your plans due to the weather, rainy day funds are similar to that analogy. You may not have anticipated a torrential downpour or your car breaking down, but either of these could happen at any given time, so having a little rainy day fund could at least help to mop up any unforeseen issues.

2. how do you create your own rainy day fund?

Setting up a rainy day fund does not have to be tricky or challenging. Fortunately, there are several great ways that you can do this; the first step should be to create a budget that you can easily stick too. 

Here are a few steps you can look at to start your rainy day fund:

  • Download a budgeting app.
  • Set up a monthly direct deposit from your bank account when your paycheck goes into your account. That way, you will be less likely to go on a mad spending spree.
  • Transfer at least $40-50 per month to an ISA or savings account.
  • Create a rainy day fund jar: decorate it and put any spare change in the pot often. A little bit of loose change here and there, will soon add up to an amount you can use as an investment.
  • Consider reducing your outgoings for a few months, while you get settled into a routine of creating your rainy day fund. 

Aim to save $1,500 in 3 months, and then stick to that plan; you’ll be amazed.

3.  Alternate Approaches To Becoming A Saving Diva

An alternative to rainy day funds is to generate a savings pot of gold or a Terramundi Jar, which a sealed jar that you can add a little money to or throw all your loose change into the Terramundi jar, until it is full. Once the pot is full, you can celebrate by smashing the jar and counting up all the money. This approach is a beautiful way of saving.The jar is completely sealed making saving easy, plus the Terramundi jar holds up to at least $600. 

Another option would be selling or pawning your jewelry; for example, you could pawn diamonds or gold if you have these languishing in your jewelry box. It would help if you need a quick solution to meet a financial emergency. 

Look at all your options, and become a savvy saving diva.

best,

– a contributed post

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