How to Save for a Rainy Day

For people on a tight budget, saving any amount of money might seem to be nearly impossible. However, saving some money from our income is essential, as one never knows when disaster may strike, and we will be hit with a huge bill. It would be a mistake to hold back a credit card for emergencies. If you’re forced to use a credit card, the repayments can be very high and in the long term add more of a strain to your budget. It would be more sensible to save a little bit of your income for these expenses in advance.

If one just saves tiny amounts of money it will add up. The adage is; if you save your cents, then the dollars will look after themselves. Saving can be a low key and even the contents of a porcelain piggy bank will add up if you’re disciplined enough to toss in your lose change regularly.

A lot of people must save this way or why else would supermarkets have change counting machines? In conjunction with a piggy bank, one might consider opening a basic savings account. Then when piggy is full, you can empty the contents and take it to the bank with your savings book, the next time you’re going that way.

Most of us have some amount of disposable money. It might be an idea to take 10 percent of this and bank it each week. Oddly, saving can be become habit forming. Once you have started saving and seen those amounts grow in your savings book you’ll be encouraged to continue.

However, saving does take discipline to being with. Your spare money should be kept out of sight, either in a piggy bank or in a savings account. If you leave the money handy it will tempt you to spend it. If the money isn’t readily available, you’re more likely to leave it where it is, untouched.

The secret is to start by saving small amounts you’re not going to miss. Don’t be tempted to start with saving big amounts of cash, as your budget will quickly feel the pinch, and you’ll be dipping into your savings before they have a chance to grow.

Instead start with just lose change. Once the saving habit is established you may find you can contribute larger amounts to your savings. Remember, the money you save is still yours; you can access it at anytime. With luck you’ll have something saved for that rainy day.