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!
Discussing money saving tips can be considered an everyday topic, but actually taking action and doing so is not so regular. This blog gave several helpful tips that may be the driving force to cause people to stop spending and start saving. I especially liked the tip on putting aside extra change in a jar. I always give away loose change without realizing how much it can really add up. Little tips like this can help in the rise of an unexpected emergency and essentially prevent the cause of debt!
Thank you for posting, these tips will come in handy. Normally whenever I have loose change from the day I ignore it and leave it in random places. If I ever decided to take a day off and search for all my loose change I would probably have a small fortune. I like the idea of keeping it in a jar or box where I can easily access it and then bring it to the bank for savings. In that way I don’t have to give up having a coffee everyday but rather I just collect the change over time and save in that way.